Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hi MM, Can we please have your updated views on coal in the short to medium term? Also, on MM's coal holdings, in particular WHC and NHC (BCB you updated on recently), and what you view as good entry points for these stocks. Thanks, Darren
Hi Darren,
Our positions in coal are long held and our view remains the likes of Whitehaven (WHC) and New Hope (NHC) will continue to generate a lot of cash/earnings over the coming years, well in excess of the their current markets caps. We also know these are volatile stocks and the market tends to buy/sell the stock based on the trajectory of the underlying commodity price, which makes sense. At this point, our view is that Coal prices are finding a base ~$US125/mt and now represents good buying for the coal stocks, WHC ~$7.50 and NHC ~$5.00
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