ICE Richard Bay Coal Nov '20(LVX20)
61.25+0.35(+0.57%)13:05 CT[ICE/EU]
ICE RICHARD BAY COAL PRICESfor Tue, Nov 3rd, 2020
Coal prices have been moving back in that zone of good profitability, and given we sell in US dollars this augers well for our P&L.
This coal price above is equivalent to R987, and when you consider our neighbours cost to mine of R400 (that has been Exxaro's most expensive year in the last three years). This leaves a lot of change to cover debt etc.
I often use Exxaro to compare costs as they have there flagship of Grootegeluk that has similar coal quality, strip ratio etc. Exxaro are also in the Waterberg.
I'm sure the team at Noble etc. know these figures, and I'm having difficulty accepting that IDC, Noble or PIC won't take up the slack. At the very least that they provide short term working capital to allow us shareholders to contribute. If not taken by Noble, IDC or PIC. I would be pretty disappointed as a shareholder if they didn't offer us an opportunity to fill the small gap that IDC is leaving behind. Particularly, given IDC was given a good chunk of equity, and it was debt funded.
What I know. The BOD is established for the benefit of all shareholders, not just for major shareholders. So, giving us an opportunity to not only save our company and value, but to share in it, should be a consideration. i.e. whatever we raise would reduce our debt and then we receive back the IDC 10%. Again, there is so many options, this just another.
