Just a few exerpts from this weeks Eureka report (robert Gotliebson)
Just wondering on a few points and what MTE followers think.
Taken from parts of the essay...
As we look around the world, we see that large amounts of coal, particularly steaming coal, are becoming available and therefore the price is not likely to rise a great deal...
As Queensland coal is beginning to price itself out of the market, (I am assuming he is referring to labour, trade union interference and extraction/ freight costs) Mozambique coal is far cheaper to mine and has attracted the attention of Rio Tinto and other large miners...
At the same time, the availability of large amounts of coal and shale gas in the US is taking market share and their coal is going to come on to the global market if the coal price starts to rise. Accordingly, Queensland and NSW coal are squeezed between higher costs and stagnant or lower long-term prices, so expansion looks much less attractive...
Rio Tinto’s acquisition of Alcan was a disaster, and BHP’s acquisition in the shale gas sector, which wasn’t as big a disaster was badly timed because the price of gas slumped within a short time of the acquisition. Institutions are now questioning the management of large mining companies at a time when there is not enough cash flow to fund these very large projects. But in time it is going to mean gluts of minerals will be restrained and mining companies will be more profitable...
The article mentions tax and budget implications mainly and was not overly negative on coal but it did highlight a few things.
Question: Is thermal coal the same as steaming coal? I am guessing it is the same. Just wondering if MTE coal has higher pedigree value than the African stuff or whether that is not important since they just burn it anyway.
Not looking for big things, but just wondering on what people's feelings are now on MTE and their projects. (Not share price performance which is ridiculous)
I am now back to original purchase price over 2 years ago, so no growth here at all...sadly I held!
MTE Price at posting:
33.5¢ Sentiment: Hold Disclosure: Held
