Yes, it was good to see Penumbra moving along. But this passage was not so good with regards to Ferreira:
"EBITDA of ZAR1.2m (after mining, processing, administration, materials handling, export, exploration closure and indirect costs) decreased from the ZAR2.4m of average monthly EBITDA reported in the March 2012 quarter."
50% lower earnings for the month. Annualised, that's an EBITDA of AUD$1.8M from Ferreira. This in a nutshell is the effect that lower coal prices have on a low margin miner. When you consider that some AUD$7M was spent last quarter alone in corporate and adminisatrative matters, today's selling may be partially related to that in addition to the entire market being sold off at large.
CCC Price at posting:
13.5¢ Sentiment: None Disclosure: Not Held