COK's production costs at Wandoan will be around $50/t or less.
The high production costs at Baralaba are because of the nature of the geology there, nothing to do with COK's management. In fact costs have already come down from around $115/t to under 100, which is a good achievement.
It would be impossible to get Baralaba's costs down to $50/t and same with Wonbindi, Dingo and the other mines going in there. But it's no big deal because they are producing PCI which is currently going for $175/t so there's still a healthy margin.
So I doubt high costs are holding the share price back. At least not to anybody who understands WHY costs are higher at Baralaba.
COK Price at posting:
53.0¢ Sentiment: Buy Disclosure: Held
