Analysts are cautious of upgrading Macarthur Coal’s (ASX:MCC) ratings following the announcement that the Queensland miner would be developing the Codrilla open cut coal mine.
Some analysts have told Fairfax Media that a weakness in Japanese coking coal demand won’t help the company.
Previous reports that CITIC Group, which is Macarthur’s joint venture partner on the Codrilla project, will pick up an extra 13.76 per cent stake in the project, have been corrected by the company. Rather, the extra stake in the project is being sold to the Coppabella Moorvale Joint Venture (CMJV).
Macarthur Coal (ASX:MCC) reported a profit of $141.2 million in the second half of last year.
