CBT - Cobalt Coal Corp (tsx) - Page 2

FYI all: recent 3Q interm financials and MD&A posted on SEDAR.

CBT and NAG are getting hot today

With coal shortage in china this one might be something to keep on radar

Got some at 7.5

just cleaned up 30k @.075

Very nice position Gee

Hi there guys/gals i've been watching in the winds now for about a year
and have found alot of interesting posts which have helped me out along
the way. Thanks to mouserman, houndog, gee, otobong, and leebert to name
a few. By the way gee, the cibc invester loading up is a he lol.. and good luck
to all.

Lets see how she does on the Pink Sheets tomorrow in the US. MAJOR production halts in Australia where a large chunk of the worlds Coaking Coal supply is mined and shipped. IMO this might pump up coal sector tomorrow and with CBT awareness rising, we should be able to chew through 9.5 and 10 cent walls on Tuesday AM on the TSX.

Thermal coal prices to keep rising - Barron's



By: Reuters
3rd January 2011



NEW YORK - Prices for thermal coal, which is used for power generation, have risen sharply in the past month, making the commodity more attractive to investors than oil or natural gas, Barron's said on Sunday.

"A perfect storm of severe weather affecting both supply and demand has driven benchmark prices of thermal coal in Europe, South Africa and the Asia-Pacific region up by around 10%," the business weekly reported.

"Infrastructure bottlenecks mean it will take time for market tightness to ease, even after the weather returns to normal, making thermal coal a better near-term play than crude oil or natural gas."

"We see little respite from higher prices in the coal market in the short term," Barron's quoted analysts at Barclays Capital as saying.

Thermal coal prices were on a slow burn for much of 2010, as investors favored commodities linked more closely to the global economic recovery, such as metallurgical coal, which is used in steelmaking.

Thermal coal is burned mostly by power stations to produce electricity, and demand traditionally spikes in the Northern Hemisphere during winter, the weekly said.

This year, freezing temperatures have come early in much of Europe and China, with snow and ice disrupting air and ground travel in Europe, and coal shortages prompting power rationing in several Chinese provinces.
Australian coal at the port of Newcastle, an Asian benchmark, was assessed on December 24 at $124,75/t by London broker globalCoal. That is the highest level since late 2008, and compares with prices below $100/t as recently as October 22, Barron's said.

Benchmark prices in other regions also are rising quickly. Thermal coal out of Richards Bay, South Africa, which supplies both Europe and Asia, is up 13% to $121,23/t since December 3.

Bank of America-Merrill Lynch thinks the rally has only started, and forecasts prices of all coal grades "to move higher from the current levels in 2011," the bank said in a report last month. It predicts the Newcastle thermal coal price will average $107/t, up from $91 in 2010

If I'm looking at right pink sheets today. No orders went through today.

Australian Floods Could Increase Coal Prices
Sophia Fain 9:33AM, January 3, 2011
"Floods not seen in the modern era have shuttered coal mines throughout an area of Queensland, Australia, the size of Texas. Several large international miners, including Rio Tinto (NYSE: RTP), will take huge losses. That is only part of the trouble. The interruption may go on for months, which will almost certainly make the price of coal rise," according to an article from 24/7 Wall St.

The article reports "There is a significant coal shortage in China, and there is no immediate relief for the problem. China is a major consumer of coal just as its is of crude oil. Demand from the world’s second largest economy by GDP will push up prices. The cost of coal to industry in China is underwritten by the central government. That means China will either have to take larger losses or pass prices on to the private sector.

The coal mine problem in Australia could have an immediate effect on steel prices. The island nation produces about half of the world’s coking cola for the steel industry.

Coal prices have already started to rise, and the expectation is that the increase will accelerate. “The Macquarie Group said the spot price for coking coal was heading from a current level of $US246 ($240) towards $US300 a tonne, and this may be reflected in the next round of quarterly export contracts. The current contract price is $US225,” according to The Australian.

Rarely mentioned in predictions of the price of oil and other commodities are the forces of supply interruption. Every time a large storm blows into the Gulf of Mexico there are concerns that the price of crude will rise. The same is true when there is political turmoil in large oil producers like Nigeria. Wheat prices were affected last year as Russia said its supply was so low that it could not export the grain.

When commodities prices are low, the markets shrug off this kind of news. Now, as many commodity prices head toward records, traders and consumers will be more and more concerned about availability. That means it will not take much more information about potential lack of supply to cause the prices to race higher."

Another article from suite101.com reports that "The Australian floods have generally made coking coal mining supply contracts to steelmakers impossible to fill.

A force majeure clause is a legal contract clause that allows a firm to miss contractual delivery requirements due to circumstances beyond the party’s control. It is also referred to as an Act of God clause, as it is primarily raised in the event of natural disasters like torrential weather conditions or earthquakes.

To date, at least six coal mine operators have declared force majeure clauses due to shipment disruptions caused by the torrential flooding in Australia. This includes Anglo America Plc, Aquila Resources Inc, BHP Billiton Ltd., Macarthur Coal Ltd., Rio Tinto Group, Vale SA and Xstrata Plc.

Colin Hamilton, Commodities Analyst at Macquarie, estimated that mines with an annual coking coal capacity of more than 100 million tons – about 40 percent of all supply to global markets – were either under force majeure or would be imminently."

These guy's are now producing, have 2 shifts rolling,and as previously mentioned a t.v show soon starting possibly bringing more awareness
to this company. Could be a great couple months ahead.

Just on a side note, mouserman are you in on this play?

look at this run .115c