UBS: New Galilee Basin coal projects don't stack up. Daniel Morgan, Analyst with UBS (in an interview with Bloomberg) says Coal prices are very much under...

Tom McKay
Tom McKay Livewire

UBS: New Galilee Basin coal projects don't stack up. Daniel Morgan, Analyst with UBS (in an interview with Bloomberg) says Coal prices are very much under pressure, they have been for many months now. The world is oversupplied, we're swimming in it. Morgan notes At $80 per tonnes it's not the price that would really incentivise these new tonnes coming out of the Galilee Basin in the short term (They estimate the Galilee Basin is priced at well north of $100 per tonne). We don't think these projects are needed, we don't think financially these projects stack up. We don't see prices rising in the near term either. UBS has a flat price forecast from going forward at about $85 per tonne. Morgan goes on to talk about the investment case for Gold (and his thoughts that Tapering of QE will undermine it). (VIEW LINK)

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