Top project management and advisory firm Siecap gave a vital insight into the coal market outlook at the Queensland Exploration Council 2016 Capital Raising Seminar.
Held last Wednesday, October 12, from 8.30am-6.30pm, the QEC seminar was hosted by Ernst & Young, McCullough Robertson and the Queensland Government.
The program included highly regarded analysts, trade commissioners and industry professionals, who shared their top experience and knowledge about the intricacies of raising capital for their projects.
Siecap’s Director of Consulting Manish Garg and Advisory Board Member Tim Crossley – both highly experienced mining veterans – revealed current and future predictions on thermal and coking coal respectively.
Highlights of Mr Garg’s presentation included his short-term thermal coal price outlook. He believes it is being driven by import demand from China, as the country strives to keep a tight balance between eliminating inefficient coal mining capacity and keeping prices under control.
In Siecap’s opinion, thermal coal prices are expected to be stabilised at $75/t (500 Yaun/t) and in the medium-to-long-term outlook, investors can expect a better-price environment.
Mr Crossley’s critical insights into the coking coal price outlook included his prediction that the Q4 contract settlement price is expected to double from the previous quarter to around $190-$200/t.
However, he forecasted that in the medium-term, coking coal prices are expected to ease out, but are highly unlikely to fall below $100/threshold.
Tim Crossley said he was proud to both support and attend the QEC 2016 Capital Raising Seminar.
“This is a prestigious and important industry event and Siecap was honoured to make a presentation, which reflected both our great knowledge and experience,” Mr Crossley said.
The company’s blue-chip clients include Transport For NSW, Caltex, Mercedes-Benz, Nexans Olex, Origin Energy, Incitec Pivot, AGL Energy, Staples, Toyota, Super Amart, Super Retail Group, Fletcher Insulation and more.
Download the presentation here.
Image courtesy of QRC