You can bet anything that the minimum cost to rail and export will not be under $55 per tonne.
Approx $40 per tonne (assuming 80% yield) for cost of production.
$5-$10 per tonne for marketing and washing.
Discount the coal quality further and in my opinion there is no hope for EER unless thermal coal reverts back to a $150 minimum and $AUD back to 85 cents.
If you don't believe me, give the company a call and ask them how much their product coal would sell for based on its washed CV etc etc at just today's spot price. Then assume the price could go up say $50%.
In my opinion, it's still not going to break even with a 50% rise in today's coal price (EER's washed coal product).
EER Price at posting:
8.5¢ Sentiment: None Disclosure: Not Held
