NHC is the clearer of the two coal miners when it comes to power, given Thermal Coal is a large proportion of their earnings and following a tough start to 2024, the company appears to have turned the corner operationally. Last month, the better-than-expected third-quarter sales for their new Queensland mine, New Acland, were encouraging, and the company increased sales guidance for the mine. We particularly like NHC as a short/medium-term “yield play” towards increasing energy and coal demand, with the stock estimated to yield 6.5% in 2025 – see the analysis section of the MM website for NHC.
- We like NHC, initially targeting a test of $6 – MM is long NHC in our Active Income Portfolio.
MM is long and bullish NHC
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