Climate Change, page-565

Other people’s perceptions about coal pricing is a matter for them so referencing hageta ‘s opinion is totally irrelevant to me and, as such, is little more than another one of the diversions from the essence of the debate for which you have demonstrated form.

And again, trying to draw parallels between the industrial production and spot pricing is an exercise in nothing at all. Spot pricing is an arbitrary measure representing only a very small proportion of the market clearing price at any given point in time.

For intrinsic valuation of coal equities, it’s the shape of the forward curve that matters. And like I said, that’s in 2-year backwardation.

Which explains why WHC’s share price has only fallen modestly from its peak, despite large decline in spot pricing. Only someone with a very stilted understanding of things has to have that dynamic explained to them.

As for your statement: “Also, the cost of production is also much higher (WHC must be around $110AUD at the moment?)”, what are you? 12-years old? Do you really think that the $110/t number which you referenced reflects the cost which is incurred by WHC to sell products for which it currently receives $130/t?

Initially, I was uncertain whether you are intentionally obtuse or just plain dumb. That uncertainty no longer exists.



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