http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Coal/26020145Th...

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Coal/26020145

This is pretty dismal for juniors starting up and other smaller mines. It will be interesting to see FOB for Ikwezi.

I honestly don't even know if the VITOL agreement still stands. Has the agreement been extended???

If it has;

Under the agreement, Vitol will purchase the volume at a combination of fixed and API4 Richards Bay-linked pricing over a three-year period.

So the fixed rate will probably be based on projected averages over 3 years for thermal coal ~80-85/t? and a variable API4 price which will change with market. Who will VITOL market this product to in September/October pending a debt facility do you think?

Ikwezi, which is listed on the Australian exchange, said the 3.96 million mt volume represents the FULL SCHEDULED production of its Ntendeka coal mine located in the KwaZulu-Natal coal fields in South Africa in which Ikwezi has a 70% equity stake.

I would suggest an ANN by weeks end considering the dates.
What do you think the best possible outcome for IKW will be?