Present trading in thermal coal is around US$72 to US$75 per tonne spot (benchmark thermal Xstrata Newcastle, for 3 months delivery). PCI coal trades around US$98 to US$105 per tonne. Most of MCCs coal is PCI coal and some was being sold as thermal earlier in the year. Take around 7% to 8% off these prices for royalties. Semi-soft coke is trading below PCI as some is still being sold as high grade thermal. As far as I know, MCC doesn't have any semi-hard or hard coke.
There has been a bit of excitement as forward prices have risen. Downside is the ever strengthening Aussie against the greenback.
MCC Price at posting:
$9.32 Sentiment: ST Buy Disclosure: Held
