i thought i would share some info on this upcoming ipo
many probably remember the success of Owen Hegarty form oxiana /Ozminerals. He has a few ipo's on the go, this one is the first, its the coal assets
i have been following this for some months now, and after seeing the article published in the age, they are obviously gearing up to get the ipo up and running in the coming months..
not sure on how much of the article i should be posting, leave that to the mods.. but its a good read..
Tigers Realm hunts coking coal market
May 30, 2011
YOU can't have a boom in global steel production without an attendant boom in the supply of steel's core ingredients - iron ore and coking coal. For each tonne of steel the average blast furnace consumes 1600 kilograms of iron ore and 600 kilograms of coking coal.
It is a different story with coking coal. Due mainly to the Queensland floods this year, coking coal is already in short supply. More to the point, even after the Queensland industry - the world's main supplier - bounces back, coking coal is forecast to remain undersupplied for as long as anyone is prepared to forecast.
Unlike iron ore, there is an absolute scarcity of high-quality coking coal development opportunities. And the much-vaunted new supply in Mongolia and Mozambique first has to overcome major infrastructure shortcomings before having much impact on the shortfall.
It's no surprise then that coking coal prices are expected to remain at super-strong levels for years to come. The current price of $US295 ($A275) a tonne for top quality (premium hard coking coal) gives producers cash margins of more than $US200 a tonne.
Read more: http://www.theage.com.au/business/ti...#ixzz1NmfyYZgU