I have noticed a few references to the Adani royalties and the price of coal going down on a couple of threads of late.
What I think people miss on this subject is that Adani want the coal for their own use in their Indian powerhouses.
They will still be getting the coal at their cost, plus the small royalty to Linc, which I would be surprised if it will not still be cheaper than they can buy it elsewhere.
The advantage to them is that they have certainty of supply no matter what happens in the coal market over many years.
Prices go up and prices go down but for a big user certainty of supply is all important.
They will be producing and Linc will be getting their royalty and the market price will have bugger all to do with it.
Lockitt
LNC Price at posting:
$1.54 Sentiment: None Disclosure: Held
