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goggledog

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05/10/14

12:45

Post #: 14077157
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http://www.financialmail.co.za/moneyinvesting/2014/10/02/coal-companies-pulling-a-lot-of-trains

Even with weak coal export prices close to US$70/t, and the 1 000km distance between the Waterberg and Richards Bay Coal Terminal, Grootegeluk can still make money from exports. Finance director Wim de Klerk says Exxaro will not undertake a project at less than a 20% return.

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Two junior coal miners are advancing plans to build mines in the Waterberg, but funding for new mines has not been easy to secure in the past few years, and they have encountered other problems.
Resource Generation (Resgen) is building the Boikarabelo mine with funding from various sources, both debt and equity, and expects first production by the middle of 2016. It has had to delay start-up by six months after the earthworks contractor was put into liquidation but Transnet agreed to postpone the take or pay contract without penalty.

For the first three years Resgen has contracts in place for 2.5Mt/year of export coal and will sell 3Mt/year to the domestic market. Export production is expected to more than double in the second phase of the mine’s development.

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... nice to see RES get a mention!

Exxaro obviously making a > 20% return on Grootegeluk exports. That bodes well for our low-cost operation with substantial upside should the price of coal rebound, which I might add, some analysts suggest it will in 2015.

http://www.theaustralian.com.au/bus...nd-analysts-says/story-e6frg9df-1227060132520

RES Price at posting: 13.0¢ Sentiment: Buy Disclosure: Held
14 Upvote

0 Great analysis

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http://www.financialmail.co.za/moneyinvesting/2014/10/02/coal-com...

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