Upon returning from a company organised Illawarra site visit, Citi analysts note that while coal quality is first class, costs and sustaining capital are high. The fixed cost base is high, the analysts emphasise.
Deutsche Bank upgrades to Buy from Hold and raises the target to $4.10 from $3.80. The broker believes the easy gains have been made and FY19 is likely to feature challenges to price rises from increasing costs and capital expenditure. Still, earnings remains satisfactory.