Coal operator SMR offers investors an attractive long-life cash flow with solid margins while coal and steel prices remain fairly resilient. As is the case with most cyclical commodity stocks this is largely a play on the coal price which MM is bullish over the coming years believing consensus is too optimistic on the carbon zero journey, e.g. the uptake of electric cars outside of China illustrates its not going to be all plain sailing.
- We prefer Whitehaven Coal (WHC) and New Hope (NHC) for domestic coal exposure. We hold WHC in our Active Growth and NHC in our Active Income Portfolios.
MM is neutral to bullish toward SMR
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