The sector was hit today with Whitehaven (WHC) -5.85%, New Hope (NHC) -5.65% & Bowen Coking Coal (BCB) -10.34% all suffering large declines. Media reports this morning surfaced that the NSW government is looking to revamp coal royalties ahead of the state budget in September, and we doubt that it will end in coal companies paying less! The Government has asked the industry for input as part of a broader consultation with coal miners, power generators and trading partners on what steps should be taken when the state’s temporary coal price cap expires.
- While we don’t know where this will land, it’s unlikely to be favourable.
MM remains bullish on WHC, for now at least
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