I haven't seen anybody discuss the actual profitability of this mine and what they margins are like so I had a quick look myself. The figures below are obtain from the Independent Report:
Total FOB cost (incl royalty) is AUD$87.99 per tonne
Current market price is AUD$111 per tonne
Leaving a margin of AUD$23.01
That doesn't leave a lot of room is the price of coal moves south.
I would hardly call this mine a cash cow as others have, but I am happy to be corrected.
s.loeb
RRP Price at posting:
9.6¢ Sentiment: None Disclosure: Not Held
