Coal

Since COVID, the coal price has been on a rollercoaster ride, with the last 12 months ~70% decline taking prices back down to more sustainable levels. We continue to believe that the transition to clean energy will be a more challenging and longer journey than we all hope, benefiting the coal stocks, which are already cheap cash cows at current prices, e.g. Whitehaven is trading on a PE of ~8x while being forecast to yield north of 6%.

• We continue to like Whitehaven Coal (WHC) for growth and New Hope Corp (NHC) for income: we hold in our Active Growth and Active Income Portfolios accordingly.

Hence, moving forward, we may tweak our coal exposure, although we would look for further weakness to take our existing positions higher.