Ann: QUEENSLAND COAL ROYALTY REGIME, page-45

Hi investor1992, I was aware of that and of the historical discounting of PCI grade which is mainly what they sell but with some HCC coming from Poitrel mine ( circa35%) . Since the ukraine war began, PCI demand in Europe which previously sourced from Russia has increased considerably. Here is a graph of prices by grade displayed by SMR at a recent business lunch they presented at ;




The historical discount of which you are talking about has been non existent basically since the Ukraine war commenced. PCI demand volumes are also expected to increase throughout Asia as India and other countries install more furnaces using PCI. Hence I wouldn't be surprised to see this historical discount you are referring to between HCC and PCI become a lot less going forward for the short to medium term at least until some of these much talked about technologies can scale up and be cost effective at possibly replacing PCI, but I don't think that is a likelihood until mid next decade. Heres a * article link that has some discussion of this towards the end ;

https://unauthorised investment advice/resources/analysts-say-pci-could-be-the-first-coal-grade-killed-by-the-energy-transition-miners-and-traders-have-other-ideas/

Anyway lets say your right and HCC met coal reverts to 250 USD, and PCI also reverts to its normal historical discount , applying your benchmark 70 % , would give a price $ 180 USD ($218 AUD) and royalties would be only then $ 24 per tonne ( the new qld regime doesnt have such a massive impact at these much lower prices) , and they would be netting after royalties around $ 195 AUD tonne . My high level model still suggesting a price of over $ 4 per share in that scenario. So if you bullish on the macro for coal (both met and thermal) , personally still feel smr is a good place to make a bet.