go check it out yourself!
Mining stocks are having a rough ride today as the pace of growth slows in China's GDP and industrial production, and Goldman Sachs comes out bearish on copper and iron ore prices.
Proclaiming "the sunset of the Iron Age starts in 2014," Goldman believes the steel intensity of the Chinese economy will be on a downward trend from 2014 onwards following a decade where steel production growth outpaced GDP growth.
Some indicators already point to lower rates of steel production growth, the firm says; Chinese steel-making capacity is near its peak, and a greater focus on environmental regulations is driving the closure of an increasing number of blast furnaces.
Goldman expects Iron ore to fall to $108/ton in 2014 and $80/ton in 2015.
I actually treat this as negative info. 1.65Billion in terms of full cost is too much for any coal-fueled power plant. Somehow I hope this can demonstrate the option is not economical and this only hurts the mining industry employees and raise cost of power.
A long-stalled project to capture carbon-dioxide emissions from a coal plant in Illinois will get a $1 billion grant from the U.S. Department of Energy, which the operator said will allow construction to begin this year.
The approval is “a boost to demonstrating fully integrated carbon capture and storage technology at commercial-scale coal-fueled power plant,” Ken Humphreys, chief executive of the FutureGen Alliance, said in a statement today. The full cost of the project is $1.65 billion.
read more at bloomberg /news/2014-01-16/stalled-coal-plant-emission-project-wins-u-s-grant.html
Ten of Europe’s biggest utilities mothballed 21.3 gigawatts of gas-fed stations last year, or 12 percent of Europe’s generation fleet, as plants lost money for a second year, according to an Oxford University study.
Read more at Bloomberg /news/2014-01-17/utilities-shut-12-of-europe-s-gas-plants-in-2013-oxford-study.html
However we did hold the daily close above 17.30, which was higher than the last low of 16.9x back in October. Higher lowers usually are good signs.
For fiscal 2014, management issued guidance well below analyst consensus. The Houston-based business said it expects net income in the range of $1.10 to $1.30 a share and revenue between $305 million and $340 million. Consensus was for net income of $1.54 cents a share and revenue of $346.92 million.
From their press release
After the bell Thursday, the coal miner said 2013 guidance will remain as previously issued. Revenue is expected between $205 million and $220 million and the company expects net income of $1.40 to $1.60 a share. Analysts surveyed by Thomson Reuters had hoped for net income of $1.46 a share on $346.72 million in revenue.
"We did not see the recovery in the coal markets that we thought might occur over the course of 2013, but instead the markets weakened," said CEO Nick Carter in a statement.