Couple of interesting comments in the BHP quarterly production report released today:
Average realised pricesi Dec H22 Metallurgical coal (US$/t) 268.73 Hard coking coal (US$/t) 270.65 Weak coking coal (US$/t) 252.12 Thermal coal (US$/t) 354.30
And:
The Queensland Government’s decision to raise coal royalties to the highest maximum rate in the world makes Queensland uncompetitive and puts investment and jobs at risk. We see strong long-term demand from global steelmakers for Queensland’s high quality metallurgical coal, however in the absence of government policy that is both competitive and predictable, we are unable to make significant new investments in Queensland. This increase to royalties will impact the local businesses, suppliers and communities in Central Queensland where we operate.
Pretty good prices for coal are still being realised. But how can thermal be higher than coking...... And if people like BHP won't make new significant investments in QLD to increase supply won't prices stay higher for longer?
Best
BSP
DYOR, NFA, GLTAH
SMR Price at posting:
$3.46 Sentiment: Buy Disclosure: Held
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