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SunCoke Energy Inc. Message Board

  • ilook4u75 ilook4u75 Jul 22, 2011 11:27 AM Flag

    The Reason I'm In

    I read this at their website under the heading of, About Us, and sub heading, Strategy.

    "All of our current cokemaking capacity, including from the Middletown facility under construction, is committed under long-term take-or-pay agreements. For our future projects we may seek to reserve a portion of the facility’s overall cokemaking capacity for sales on the open market. We believe that, when combined with a base of long-term commitments, uncommitted capacity reserved for open market sales will provide an attractive opportunity to capture significant value during market up-cycles. We anticipate targeting approximately 5 to 10 percent of our overall coke sales volumes for sales in the open market."

    http://www.suncoke.com/about-us/strategy.php

    If I am reading this correctly, 100% of the product they produce is all ready sold under contract. For future projects Suncoke will hold back uncommitted production to sell at higher prices on the open market. Hopefully, this turns out to be a cash cow. What does it matter if someone bought at $18? Looking forward to future production capacity and earning annoucements.

 
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