re: Ann: PEA Confirms Potential Robust Econom... Teck will...

re: Ann: PEA Confirms Potential Robust Econom... Teck will report their 1/4 ly tomorrow. rather than second guess pricing, this will be a great read into current price levels for elk valley HCC. JAL have stated time and time again that crown runs along the same fault and should/(i think will) produce same type / yield 60/70% coal than Teck. The PEA says in regards to coal mix; metcoal 89.87%, PCI coal 6.35% & thermal 3.78%.
I looked back at one of Tecks latest presentations and interestly they think US$170/tonne benchmark price could squeeze out approximately 52-58mt of seaborne metallurgical coal or another way of saying it 20% of global production uneconomic. what the margin cost curve means for MetCoal could be like iron ore.(margin cost tested and spot price goes below that point....) what is most interesting..... is the iron ore price bounce back has far exceed what every bearish analyst thinks, 85 v current spot 136. i believe the same fate is for MetCoal, people are way too bearish with numbers and i believe the margin curve highlights the importance of coal quality and price support. crown is very robust and if quality is similiar to Teck it can cost produce well inside the lower price forecasts (which i think is too bearish and wrong).