RE: What is going wrong here25 Jul 2022 11:08
Banzai, Fromage
From the RNS-
The last two months has seen considerable market price volatility of High Vol A and High Vol B coal, the products sold to Integrity. In order to minimise any future adverse impact on the selling prices achieved by the Company for eight of its ten shipments (domestic sales), it has agreed with Integrity a fixed sales price per ton for these consignments. The agreed price per ton of clean coal is higher than the current market price of our coal products, thereby insulating the Company's earnings on these consignments from any future falls in the price of met coal.
I read that as the Integrity coal price is now fixed above what it currently is on market, possibly holding the 20 day price average where it is or a little higher.
So Bens are protected against further falls in 20day average and Integrity are protected at some point against increase in 20 Day average.
AW was strongly pushing the line that prices after august will move back up so I dont think he will have sacrificed too much profit but may have given a little of the high profit back to a key buyer at this time.
ATB