mim - xstrata - oh, what a feeling!

Remember when Tutt and his jolly band of non-executive board members sold out MIM at “a fair price”?

The CEO and a steamed leader Vince Gauci had another view, but sadly the company was stolen for a bag of peanuts.

Now have a look at this:

Thursday 22 April 2004
Xtstrata Coal settles 2004/05 coal prices

Resources group Xstrata plc announced that Xstrata Coal has settled 2004/05 term prices for the supply of hard coking coal into the Asian and European steel markets at an increase of up to 200% from the previous contract year's prices of around $45/ton.
In addition, in respect of the delivery of thermal coal to long-term customers in Japan, Xstrata Coal has secured a contract year price of $45/ton FOB, with effect from 1 April 2004. This represents a 68% price increase on last year's unofficial reference price of $26.75/ton.

Peter Coates, Chief Executive Xstrata Coal, said, "We have settled coking coal contracts with our existing customers in Asia and Europe at varying prices up to $135/ton for unpriced tonnage to be supplied in the 2004/05 contract year.

"These prices have been averaged with carryover tonnage that was to be delivered at last year's prices, as a result of production constraints at Oaky Creek in 2003. As a consequence, Xstrata will achieve an average price of $80/ton for deliveries over the 2004/05 contract year ending March 2005. We have also achieved similar prices for our Collinsville semi hard coking coal into the Asian steel market," Coates added.
Xstrata's average realised price for calendar year 2004 for its Queensland coking coal is expected to be in excess of $65/ton. This includes tonnage shipped and already priced against 2003/04 contracts, he said.
"The settlements of our coking contract prices reflect the positive outlook in the medium to longer term for prime quality hard coking coals, such as the coals from our Oaky Creek and Collinsville operations, on the back of continuing growth in demand from markets such as China and India. The ongoing tightness in the thermal coal market has had a favourable effect on term prices recently negotiated for our New South Wales and Queensland thermal coal production," he concluded.

http://www.businessday.co.za/bday/content/direct/1,3523,1599317-6080-0,00.html