CRN – Update?

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Question asked 17/02/2024

CRN – Update?

Hi, Do you have an updated view on CRN? It seems to be quite highly rated at the moment, would you agree with this consensus? Also, your previous comments indicated a preference for WHC over CRN. Could you explain why? Do you still hold this view? Many thank Suresh

Answer

Suresh,

The coal space as a whole is struggling in 2024 with CRN -16%, WHC -4.8% and NHC -3.1% as of midday Friday – these numbers illustrate one of the reasons we prefer WHC over CRN, stay with the strength. You are correct that the market currently likes CRN with 1 sell, 1 hold, 6 buys, and 2 strong buys on the stock but “the tape” doesn’t agree with the analysts.

We remain bullish coal over the coming years, particularly met coal used in steel making, which is what CRN produce and this is what will dominate WHC’s production post-acquisition.

We think scale is very important, and for that reason, we prefer WHC, but don’t have any issues with CRN.

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Coronado Global Resources (CRN)

LAST UPDATED 16/02/2024 11:55

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