Quite a fall for MCC from the $20 level only, what seems, a few months ago. After following the stock for ages I bought for the first time. It seemed as if someone bit my hand off when my bid went in.
Date: 1/9/2008
Author: Matthew Cranston
Source: The Australian Financial Review --- Page: 49
A 4,900-hectare grazing property near Emerald in Queensland was bought for $A4.8million in late August 2008. Property developer Jim Gorman purchased Metro afterselling his stake in coal miner Jellinbah Resources, a company he helped developin the Bowen Basin with Ken Talbot 20 years ago
October 01, 2008
Global coking coal prices set to go up - Report
Mr Steve Leer chairperson & CEO of Arch Coal Inc said that globally, coal prices are witnessing a significant spike, thanks to the growing steel demand and supply constraints. Coal, which is one of the major raw materials for producing steel, is already short of 25 million tonnes to 35 million tonnes in 2008 fiscal across the globe, which is likely to reach 70 million tonnes in 2009 fiscal.
According to Macquarie Bank Limited, coal production from Australia may decline by approximately 15 million tonnes or about 12% of Australia's annual exports in 2008 fiscal. Recent floods in Australia forced several coal producers to shut down their mines, resulting in a huge decline in coal output in the first quarter of 2008.
In addition, a power crisis faced in South Africa in January 2008 and thereafter a reduced power supply from Electricity Supply Commission resulted in a shutdown of several mines and forced coal producers to cut their output, which further decreased the coal production.
China plans to reduce exports of coal in 2008 fiscal, as it remains concerned with its domestic power needs, since two third of China's energy production depends on coal. Moreover, in order to curb the ever-increasing inflation rate and the over heated Chinese economy, the government of China raised its export tax for steel billets from 15 percent to 25%, effective from January 1st 2008, to reduce the inflow of funds.
This resulted in a tight global coal supply condition, leading to a hike in coal prices. While China's coal exports are expected to decline moderately, coal production capacity is expected to increase to 2.73 billion tons in 2008 fiscal, supported by expansion of coalmines and technical renovations to meet the growing demand from domestic market. Furthermore, with the steep increase in oil and gas prices, coal's importance in the world energy mix is set to increase in the future.
According to the International Energy Agency, there are abundance of coal resources of approximately 200 years worth of coal reserves, evenly distributed in the US with 27%, Russia with 17%, China with 13% and India with 10%. It is estimated that by 2030, coal will account for 27% of the global energy mix, up from the 24% that it holds today. Given the abundance and accessibility of coal resources, the increased usage of coal will facilitate minimizing the global energy crisis.
Going forward, the demand supply mismatch is expected to last for at least two to three years before it recovers from the supply bottlenecks in Australia and ease power shortages in South Africa. Hence, coal price outlook in 2009 fiscal is likely to remain strong with coking coal prices expected to increase to USD 320 a tonne and thermal coal to increase to USD 135 a tonne for 2009 coal year.
MCC held up better than most yesterday.
Seems the coal industry is set to remain stable if the following report is correct:
from
http://steelguru.com/news/index/200...coking_coal_prices_set_to_go_up_-_Report.html
Pre-open looks good for a positive day.
Thought I would spread my misery around with all my holdings. Maybe my losses will brighten up someone else.
MCC -49.87%
Don't worry about this depressed price, the company has got more Aussie Dollars pouring in, this quarter, than ever before. Looking fair, have a glass of red wine and a slice of toast and chill out - no worries at all - unless you're a forced seller.Thought I would spread my misery around with all my holdings. Maybe my losses will brighten up someone else.
MCC -49.87%
Don't worry about this depressed price, the company has got more Aussie Dollars pouring in, this quarter, than ever before. Looking fair, have a glass of red wine and a slice of toast and chill out - no worries at all - unless you're a forced seller.
Nice move from MCC over the last couple of days, this stock looked very oversold for one with such high earning potential, I bought in a few days ago at an avg of 5.80 now. Looked good for a move up.
Whilst other resource companies are slashing forecasts and earnings MCC actually increased their estimates. Disc I hold CEY and MCC for fav coal stocks. I would now like to see CEY produce a qtrly as upbeat as MCC.
MCC looking exceptionally cheap based on forward earnings and dividends, assuming they can maintain those divies. Anyone else on ASF holding these guys still?
Coal miner MacArthur Coal Ltd. (MCC.AU) said Tuesday it's bracing for a downturn in demand for its pulverized coal used in steelmaking, given large cuts among global steel makers.
Steel makers such as ArcelorMittal S.A. (MT), which holds a 19.9% stake in MacArthur, recently announced output cuts of some 35%, and cuts at Chinese steel mills have forced major iron ore miners Companhia Vale do Rio Doce (RIO) and Rio Tinto Ltd. (RTP) to trim production.
well, like most of my other stocks, Macarthur Coal are not worth a brass razoo any more. It's gotten to a level that it's not even worth pulling out of
All coal stocks are very high risk with the problem China and Indonesia could start dumping coal at some stage.Then hang in there and be patient - SRL and FLX both in talks with prospective buyers of coal assets at present. The action is just starting...
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