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Saturday, 17 October 09
US COAL MINERS LOOKING AT LOWER PROFITS
 Most US coal miners are looking at sharply lower third-quarter earnings, but those that produce coal for steelmaking and export should enjoy higher prices in the longer run than those that sell coal for power generation, analysts say.
Last year's economic downturn hit both steel and electricity demand hard and miners were forced to cut back on production as coal prices slumped. But now there are signs that coal demand, at least from steelmakers, is coming back.
"We generally favor coal producers with international leverage, especially those tied to steel production via metallurgical coal, over thermal coal producers," analyst Jeremy Sussman of Brean Murray, Carret & Co said on Thursday.
And Morgan Stanley's Mark Liinamaa and Wes Sconce said they expected premium hard metallurgical or coking coal for steelmaking to be selling at $160 per tonne in 2010, with prices trending higher through 2013. In June, the benchmark price for coking coal was $129 per tonne.
"Our commodity team sees higher seaborne thermal coal prices going forward but we do not expect demand for U.S. thermal coal exports for the next 12-18 months," the Morgan Stanley analysts said in a research note.
In afternoon trading on the New York Stock Exchange on Friday, the S&P index of coal stocks .GSPCOAL was down 1,2 percent, with Alpha Natural Resources the biggest loser, down 3 percent at $37,61. Consol Energy fell 2.4 percent to $49,76, Massey Energy fell 1,4 percent to $32,89, Peabody Energy was down 1,3 percent at $41,69 and Arch Coal was off 11 cents at $23,94.
This week, Dahlman Rose & Co downgraded Peabody, Arch and James River Coal to "hold" from "buy," saying the weak outlook for thermal coal does not support current valuations.
Peabody kicks off the earnings season for coal miners next Tuesday, followed by Arch, Consol Energy, Massey Energy and Alpha Natural Resources.
Of those producers, only Consol is seen posting a profit bigger than in the 2008 quarter, according to Thomson Reuters I/B/E/S. Analysts on average expect Consol's earnings to be 66 cents per share, compared with 49 cents a year earlier.
"Consol has one big met mine (Buchanan, in Virginia) and we expect it to do better than expected as there has been a lot of spot demand from China," said Sussman.
He said Arch had the least metallurgical coal of the major miners and analysts currently expect its profit to be 4 cents per share, way off last year's 68 cents.
Peabody produces coking coal at its Australian mines, but analysts expect a big drop in third-quarter profit from $1,38 per share to 22 cents. Earnings of Massey, which has about 25 percent metallurgical coal, are expected to drop to 18 cents per share from 86 cents a year ago and Alpha's profit is expected to drop to 39 cents from 90 cents a year earlier.
Sussman said lower electricity demand from industry since last year's economic downturn has hurt coal miners that produce thermal or steam coal, which is burned in power plants.
"Inventory levels at utilities are still way too high (70 days, or 50 percent above average) for thermal coal producers to speak positively about the thermal coal market," he said.
According to Edison Electric Institute, for the 52 weeks ended Oct. 10, U.S. power production was down 3.4 percent from the corresponding period in 2008.
"On the other hand, there have been a number of recent positive data points in the met coal space, which should help met coal producers' earnings," said Sussman.
He noted China imported about 8.7 million tonnes of met coal during the third quarter, 30 percent more than in all of 2008. Also, Australia has slowed shipments to China recently and the United States appears to be picking up some of the slack.
"U.S. met coal companies should see a meaningful pickup in activity levels in the second half of the year versus the first half," said Sussman.
Morgan Stanley's analysts said investors seeking exposure to the coking coal upside might consider Cliffs Natural Resources, an iron ore pellet producer, which also operates some coal mines.
"Cliffs' U.S. coking coal mines can grow to 4,5 million tons by 2011, ahead of the market's 3,5 million-ton outlook," Liinamaa and Sconce wrote. Analysts expect Cliffs to report a 6-cent loss in the third quarter, after a $2,13 per-share profit a year ago.
Source: Mining Weekly, Reuters
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Thursday, 29 October 09
MMTC AWARDED 12.5 MILLION TONS TO THREE INDIAN TRADERS
COALspot.com (India): State-run trading firm MMTC awarded tenders for the import of 12.5 million tonnes of coal for NTPC to three Indian coal trader ...
Thursday, 29 October 09
COAL OF AFRICA SEES VELE OUTPUT BY APRIL 2010
* First coal from Mooiplaats mined and sold
* Talks with Transnet on rail PPP on track
Reuters reported that, Coal of Africa (CoAL) said on Mond ...
Thursday, 29 October 09
UAE FUND EYES INDIA POWER FOR INDONESIAN COAL
Reuters reported that, the UAE's Middle East Coal (MEC) is in talks to buy equity stakes in India's power plants in exchange for long-term coal su ...
Thursday, 29 October 09
CESC POSTS RS 126 CRORE (US$ 26,655,178) NET PROFIT IN QUARTER TWO
Economic Times reported that, Energy major CESC posted a marginal increase in net profit at Rs 126 crore (US$ 26,655,178) for the quarter ended Sep ...
Thursday, 29 October 09
INDIA MMTC TENDER SET TO BOOST S.AFRICA COAL
The South African coal market is set to be boosted further by India's state-owned trading firm MMTC Ltd's tender for 12.5 million tonnes, Indian t ...
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- Economic Council, Georgia
- Electricity Authority, New Zealand
- Rashtriya Ispat Nigam Limited - India
- Tamil Nadu electricity Board
- VISA Power Limited - India
- Georgia Ports Authority, United States
- Chettinad Cement Corporation Ltd - India
- MS Steel International - UAE
- Ind-Barath Power Infra Limited - India
- Indian Oil Corporation Limited
- Ministry of Transport, Egypt
- Simpson Spence & Young - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Semirara Mining Corp, Philippines
- Metalloyd Limited - United Kingdom
- Meralco Power Generation, Philippines
- GAC Shipping (India) Pvt Ltd
- The State Trading Corporation of India Ltd
- Bukit Baiduri Energy - Indonesia
- Price Waterhouse Coopers - Russia
- Renaissance Capital - South Africa
- India Bulls Power Limited - India
- Sinarmas Energy and Mining - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Africa Commodities Group - South Africa
- Mercator Lines Limited - India
- Independent Power Producers Association of India
- Formosa Plastics Group - Taiwan
- Rio Tinto Coal - Australia
- Goldman Sachs - Singapore
- Ambuja Cements Ltd - India
- Coastal Gujarat Power Limited - India
- The Treasury - Australian Government
- Siam City Cement PLC, Thailand
- Kepco SPC Power Corporation, Philippines
- Energy Link Ltd, New Zealand
- CNBM International Corporation - China
- Wood Mackenzie - Singapore
- Romanian Commodities Exchange
- San Jose City I Power Corp, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Makarim & Taira - Indonesia
- International Coal Ventures Pvt Ltd - India
- ICICI Bank Limited - India
- Iligan Light & Power Inc, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Global Business Power Corporation, Philippines
- SMC Global Power, Philippines
- Malabar Cements Ltd - India
- Mjunction Services Limited - India
- Orica Australia Pty. Ltd.
- Savvy Resources Ltd - HongKong
- Grasim Industreis Ltd - India
- Central Java Power - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Gujarat Electricity Regulatory Commission - India
- Toyota Tsusho Corporation, Japan
- Lanco Infratech Ltd - India
- Merrill Lynch Commodities Europe
- Salva Resources Pvt Ltd - India
- Globalindo Alam Lestari - Indonesia
- Bhushan Steel Limited - India
- PTC India Limited - India
- Jaiprakash Power Ventures ltd
- Karaikal Port Pvt Ltd - India
- New Zealand Coal & Carbon
- Indian Energy Exchange, India
- Dalmia Cement Bharat India
- Energy Development Corp, Philippines
- Mercuria Energy - Indonesia
- Marubeni Corporation - India
- GMR Energy Limited - India
- Manunggal Multi Energi - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bharathi Cement Corporation - India
- IHS Mccloskey Coal Group - USA
- Bayan Resources Tbk. - Indonesia
- GVK Power & Infra Limited - India
- Timah Investasi Mineral - Indoneisa
- Sarangani Energy Corporation, Philippines
- Videocon Industries ltd - India
- Miang Besar Coal Terminal - Indonesia
- Kumho Petrochemical, South Korea
- Indo Tambangraya Megah - Indonesia
- Sakthi Sugars Limited - India
- Essar Steel Hazira Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Medco Energi Mining Internasional
- Billiton Holdings Pty Ltd - Australia
- Siam City Cement - Thailand
- Indika Energy - Indonesia
- Eastern Energy - Thailand
- Kalimantan Lumbung Energi - Indonesia
- Coalindo Energy - Indonesia
- SN Aboitiz Power Inc, Philippines
- Bangladesh Power Developement Board
- South Luzon Thermal Energy Corporation
- Directorate General of MIneral and Coal - Indonesia
- Carbofer General Trading SA - India
- Australian Coal Association
- Anglo American - United Kingdom
- PNOC Exploration Corporation - Philippines
- Singapore Mercantile Exchange
- Antam Resourcindo - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Krishnapatnam Port Company Ltd. - India
- Uttam Galva Steels Limited - India
- Eastern Coal Council - USA
- Power Finance Corporation Ltd., India
- Parry Sugars Refinery, India
- McConnell Dowell - Australia
- Central Electricity Authority - India
- Cigading International Bulk Terminal - Indonesia
- TeaM Sual Corporation - Philippines
- Orica Mining Services - Indonesia
- Aditya Birla Group - India
- IEA Clean Coal Centre - UK
- Tata Chemicals Ltd - India
- Xindia Steels Limited - India
- LBH Netherlands Bv - Netherlands
- Ministry of Finance - Indonesia
- Sindya Power Generating Company Private Ltd
- Holcim Trading Pte Ltd - Singapore
- Ministry of Mines - Canada
- Global Coal Blending Company Limited - Australia
- Gujarat Sidhee Cement - India
- Attock Cement Pakistan Limited
- SMG Consultants - Indonesia
- Altura Mining Limited, Indonesia
- Global Green Power PLC Corporation, Philippines
- Pendopo Energi Batubara - Indonesia
- Borneo Indobara - Indonesia
- Kideco Jaya Agung - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Electricity Generating Authority of Thailand
- Larsen & Toubro Limited - India
- Edison Trading Spa - Italy
- The University of Queensland
- Bahari Cakrawala Sebuku - Indonesia
- Trasteel International SA, Italy
- Bhoruka Overseas - Indonesia
- Port Waratah Coal Services - Australia
- Kartika Selabumi Mining - Indonesia
- Mintek Dendrill Indonesia
- Thiess Contractors Indonesia
- Madhucon Powers Ltd - India
- Aboitiz Power Corporation - Philippines
- Barasentosa Lestari - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Star Paper Mills Limited - India
- Banpu Public Company Limited - Thailand
- Indonesian Coal Mining Association
- Bhatia International Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Cement Manufacturers Association - India
- Jindal Steel & Power Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Thai Mozambique Logistica
- Indogreen Group - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Petron Corporation, Philippines
- Samtan Co., Ltd - South Korea
- Planning Commission, India
- CIMB Investment Bank - Malaysia
- Semirara Mining and Power Corporation, Philippines
- AsiaOL BioFuels Corp., Philippines
- ASAPP Information Group - India
- Heidelberg Cement - Germany
- Deloitte Consulting - India
- Sree Jayajothi Cements Limited - India
- Commonwealth Bank - Australia
- Chamber of Mines of South Africa
- Bukit Asam (Persero) Tbk - Indonesia
- Wilmar Investment Holdings
- European Bulk Services B.V. - Netherlands
- Latin American Coal - Colombia
- Parliament of New Zealand
- Bukit Makmur.PT - Indonesia
- Intertek Mineral Services - Indonesia
- Kobexindo Tractors - Indoneisa
- Oldendorff Carriers - Singapore
- Minerals Council of Australia
- London Commodity Brokers - England
- Vizag Seaport Private Limited - India
- Meenaskhi Energy Private Limited - India
- Sical Logistics Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Riau Bara Harum - Indonesia
- Interocean Group of Companies - India
- Alfred C Toepfer International GmbH - Germany
- Binh Thuan Hamico - Vietnam
- Agrawal Coal Company - India
- Australian Commodity Traders Exchange
- Kaltim Prima Coal - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Baramulti Group, Indonesia
- Standard Chartered Bank - UAE
- Leighton Contractors Pty Ltd - Australia
- Karbindo Abesyapradhi - Indoneisa
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Therma Luzon, Inc, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Maheswari Brothers Coal Limited - India
- Bulk Trading Sa - Switzerland
- PowerSource Philippines DevCo
- Sojitz Corporation - Japan
- Coal and Oil Company - UAE
- OPG Power Generation Pvt Ltd - India
- White Energy Company Limited
- Posco Energy - South Korea
- Straits Asia Resources Limited - Singapore
- Jorong Barutama Greston.PT - Indonesia
- Vedanta Resources Plc - India
- Directorate Of Revenue Intelligence - India
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