I also continue to believe, although am not modeling, that total production cost per ton of $60 is conservative.
If MCC is able to convey some meaningful proportion of its production directly from UHG to GM using its own trucks, transport costs per ton would have to decrease. 2016 annual report says direct, own-truck UHG-GM costs were $8.50 per ton versus $13.20 per ton for combination own-truck, third-party transport UHG-TKH-GM costs. Even shipping 10% of production direct from UHG to GM would mean that total production costs would drop by nearly $0.50 per ton.
Recent MOGLF News
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