CCI Holdings (CHL) has seen it's share price drift back from 18/19c t0 16/16.5c due to TEMPORARILY lower coal volumes flowing through the key Hay point coal terminal. This terminal is owned by BHP and is down to a mere 24MTPa rate of throughput while a shiploader damaged last December gets repaired. Coal throuput will return to the normal 35MTpa capacity at the beginning of April. However ADDITIONAL NEW CAPACITY of 5MTpa will be available in August, and a further 4MTPa in December. this means by the end of the year the port will be outputting 44MTpa, up a whopping 20MTpa on the current constrained throughput. This turnaround will drive the shareprice of CHL above 20c as CHL performs 100% of the coal certification at Hay point for BHP , and has just announced it continue this arrangement with BHP for a further 3 years until the end of 2008. CCI gets paid on a per tonne basis, so their profits will rise on the rising export tonnage from this port in particular.
CHL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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