a new res is born, page-12

A combo of global recovery and continuing strength in commodities prices,as well as takeover activities, has pushed the market higher.The positive sentiment echoed around the coal sector;producers up include Whitehaven,Gloucester and t/o target,Macarther.
We are entering a merger and acquisition phase in the market, which is positive ,cos it usually indicates that the corporates are more positive about the future.
Driven by rising demand from Indian and Asian customers,and problem on the supply side caused in part by infrastructure-related issues in Oz,SA, and S.America, coal prices have been exceptionally strong this year.High quality hard coking coal increased from US$129 last year to US$200 a tonne last month,and a concurrent increase of Newcastle thermal coal from $70 to $93US/t. The ABARE has projected a 30% increase in the value of metallurgical coal exports over the next year, as well as a 15% lift in thermal coal exports.
The gfc has caused many mining co. to defer expansion plans,esp in the historically volatile and lower returning thermal coal market. With new growth regions like India and Vietnam evolving over the next 3 to 5 years,unless strong supply comes from China(unlikely,as it now net importer,ie has moved from being a net exporter of 83mt of coal in 2003 to a net importer of 104 mt last year)or Mongolia,there is likely to be a considerable upside to coal price forecasts.
Bodes well for RES's future! A different beast now? Sure is!

GresGo!