This is a small thing I learnt a few months ago. Coal is valued according to its calorific value. This is the amount of energy produced from the coal piece in question. The higher the calorific value, the greater the heat output and, the less coal required to achieve a desired and so, the higher the price purchasers will pay. The prices in the graph you referred to reflect coal futures for 6000 kcal coal. My understanding is that Bengalla produces around 5800 kcal coal which means the price achieved is marginally under that (I think by about $5US). This is all a bit nerdy but is inserted here with the best of intentions. The coal price if it can hold up is pretty solid for us I think. I tried to work through the cash cost per tonne for production out of Bengalla and we haven't had a proper run at it yet but my best estimates are at about $A50.
NHC Price at posting:
$1.36 Sentiment: Hold Disclosure: Held
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