NHC has rallied strongly from its mid-year low, it’s actually now up for the year, unlike sector peer Whitehaven (WHC). In September, NHC reported a solid FY23 result, which included a 15% increase in underlying earnings to $1.63bn. NHC enjoys a growing production profile, which is close to doubling over the next three years through organic growth, while they’ve flagged future capital management will include fully franked dividends, on-market buybacks and other capital returns, i.e. it remains a cash cow even after coal has more than halved in 2023.
- We can see NHC trading back above $7 into 2024 as the move to clean energy proves a tougher/slower journey than many believe – we hold NHC in our Active Income Portfolio.
MM remains bullish and long NHC
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