Inserting the following key spot variables into a valuation model (and which will see many many mines close down if they persist and has wiped out over 80% of coal miners market cap):
US$/t (FOB benchmark) $85 A$/US Forex $1.05
MDS NPV +$76.2M Retained earnings $181M
If you insert -20% on expected LT prices and par forex
US$/t (FOB benchmark) $100 A$/US Forex $1.00
MDS NPV +$162.2M Retained earnings $352M
Conclusion: very!
EOC Price at posting:
25.0¢ Sentiment: LT Buy Disclosure: Held
