The fund managers must be selling heaps, HUGE numbers sold today,......
Yea Right!!!!!
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The fund managers must be selling heaps, HUGE numbers sold today,......
Yea Right!!!!!
630k has been traded on the asx. Up 6.5%. The worm may well have turned.
Maybe the environmentalists have finally won through the recycling of steel. :D
Up nearly 8%, one of the best performers on the NZX today !!
Blue sky ahead !!
Bought a bundle earlier this week @5.1c. Let's see now whether or not today's spike has the legs to climb back up that steep slope...at least to 8c. My targets 30% over the next three months.
I could be dreaming of course. Coking coal would need to make quite a comeback on the world stage.
It would be interesting to see how closely it tracks the spot price of iron ore...which has also been falling for quite a while.
Bought more (40% more) this week around A$ .048. Taking a two year view on a counter cyclical play while sellers continue to crystallise their losses.
Counter cycle, hmm in your dreams. It is called change! People generally do not like or accept change.
If you reckonize it early, you might save a mint!
http://www.resilience.org/stories/20...ng-war-on-coal
War on Coal being waged by Geology and Markets, Not EPA
JonJon
Blackpeter summed it up in post #363 but I take the liberty of repeating it.
I think you have a point if you talk about thermal coal - but that is not BRL's main product (well, at the moment it is, but just for local supplies). What they want to export is premium hard coking coal - much too expensive to burn.
Hard coking coal is an essential ingredient to make steel - you need it for the process to turn iron oxide and hard coking coal into iron and carbon dioxide. The main purpose of the coal is to release and then bind the oxygen again, not to provide energy for the process.
The use of hard coking coal would drop when the world doesn't need steel anymore, but don't expect that to happen overnight.
The current oversupply of hard coking coal is not a result of competing energy sources, but is the result of an under supply some years ago. Hard coking coal prices skyrocketed and everybody wanted to benefit from this opportunity and developed new mines (as well as BRL). Guess what happened when all this new supply swamped the market - prices dropped.
At this stage however there is more news about hard coking coal mines getting mothballed (or development delayed) - i.e. the producers take coal out of the market. I expect the price at some stage to come up again (and time will tell, whether BRL can hang in long enough to benefit from this rise).