time to earn your keep guys, page-32

Let me categorically state that the $90-$120/t DOES NOT INCLUDE performance payments or depreciation/amortisation (i.e. expensing capital costs). It is a cash cost.

(Denial - thanks for including literature and you are right it's flexible yet quite convoluted. There are two ongoing streams to L&M; the performance payments (2x$40m) and a LOM variable levy @ 10% of gross revenue and below. Unfortunately if you sell coal FOB, then transport costs/demurrage etc are included in that levy calculation...)

To give you an idea of delivered production costs, current ops are loss making on coal price of $130-$150/t (domestic). Obviously there are no performance payments associated (however GST is levied on domestic sales, but this would amount to only roughly 7.5% if we assume wages and other non GST inputs are roughly 50% of production costs).

Bathurst is now a domestic coal producer for the next X years.

There is not enough room for four domestic coal producers/traders (Solid, Taylors, Glencoal & Bathurst) on one little island. If I were going to invest in a domestic coal producer I would look for a) government support, and/or b) small overheads, and/or c) diversified customer base. Bathurst has none of these.

If I were Solid I would be undercutting the sh*t out of Bathurst right now.