The economic assessment of the Wilpinjong mine heavily overstates the value of the project. This is easily seen by comparing the estimate of the project’s net present value, AUD$735 million, with the total stockmarket value of the proponent, only $114 million.
The key flaw in the economic assessment is unrealistic production costs. The assessment assumes the current mine can produce coal for an average per tonne cost of AUD$26. At current exchange rates this would make it the cheapest mine to operate in the entire seaborne market.