Sauravg1, imo with cey vs mcc these are the important differences. Remember mcc went to over 20 last year while cey lagged. Since then they are due to increase production much more than cey.
- mcc is mainly pci met coal, higher value and higher upside when recovery comes. They were dumping it as thermal recently because of the crisis. This situation seems to be now improving.
- cey is basically thermal. Still good but lower upside. They have terrible long term low priced govt contracts. If you look in their presentations even at 2014 they will still be around half contracted to the govt. This is a very bad thing as imo costs will be rising as well as coal prices.
Also I prefer the open cut of mcc to underground mines of cey. Easy to just dump it into those huge trucks and drive it out of the hole !! Also easy to let explosives work outside ...
MCC Price at posting:
$6.22 Sentiment: LT Buy Disclosure: Held
