So what does this actually mean? Unlikely Stanwell will pay more for their contract coal from CRN whilst the existing contract is on foot. I am sure Stanwell recognise that they wont be buying coal from CRN at the same price they are today once the existing contract expires so they are wanting to negotiate now (as CRN needs help!!) to get a better deal than the market price moving forward medium term? Is Stanwell offering up a $150m pre-payment? Will this be a prepayment for coal to be bought from CRN once the existing contract expires at x% under a market rate or at y volume multiplied by a fixed price with some potential levers up/down depending upon market price?
CRN Price at posting:
17.5¢ Sentiment: None Disclosure: Held
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