That $107/t figure is abnormally high because this quarter they...

That $107/t figure is abnormally high because this quarter they mined less coal and more overburden than average. The figure will fluctuate between about $95/t and $110/t between quarters, it's nothing to worry about.

What is important is the PCI cost, which seems to be recovering. I have no concerns over Baralaba mine's ability to make a gross profit.

What concerns me is:

1. The high interest charges effectively cancelling out Baralaba's profit
2. The high exploration cost which blew $11M this quarter alone for no advantage
3. The extremely large outstanding loans that need paying soon
4. The monumentally large funding commitment required for Baralaba expansion.

Like val said there is little chance of them realising much from the way of asset sales, other than an equity sale of Baralaba to JFE Shoji or a further reduction in ownership of the North Surat JV.

Management knew what a tight spot they were in financially yet they persisted in blowing all that money on exploration. There is no reason those costs couldn't have been deferred, particulary the Surat costs - those mines are at least five years away, more likely ten. And Baralaba expansion already has its BFS so it doesn't benefit from exploring new deposits either.

The Koreans shafted COK by proving themselves to be fair weather friends, but management have done themselves no favours. It all looked so good until the Koreans pulled out!