CCI Holdings get paid for their coal testing and superintendence services on a per tonne basis. For this reason the company's profitability is quite strongly dependent on COAL VOLUMES.
After Australia got caught with it's pants down in 2004 when the demand for higher coal volumes became constrained due to port capacities being reached, we are now seeing the first major infrastructure port expansion works come on stream as additional export tonnage capacity.
Gladstone coal port (http://www.cqpa.com.au) has just announced it has loaded 1.29MT in a week, this is an annualized capacity of 67MT. Last FY the port exported around 46MT. This sharp rise in export volumes will be very positive to the bottom line of CHL.
CHL Price at posting:
0.0¢ Sentiment: None Disclosure: Held
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