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Whitehaven Coal (WHC) $3.96

WHC +10.61%: Rallied hard today as did the other coal related stocks following a huge spike higher overnight, Newcastle Coal Futures for April +46% in a move that seems a clear anomaly, however those sorts of moves typically play out in a market that is very tight, and getting tighter. While Russia is a key coal supplier (about 15% of European demand), it’s not just a geopolitical issue,  the market was getting squeezed from a bunch of different directions over the past year or so;

  • Government intervention – Indonesia a coal export embargo in Indonesia (January 2022),
  • Weather – La Nina – flooding and infrastructure challenges in NSW and
  • Covid – pandemic-related labour shortages in Mongolia and China

So while the rally to MM’s initial target of $4.00 has largely played out, there may be some more juice left in the tank.

MM is bullish WHC, although less so after todays spike
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Whitehaven Coal (WHC)
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