MM thoughts on Whitehaven Coal (WHC)

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Question asked 19/11/2021

MM thoughts on Whitehaven Coal (WHC)

Hi James and team,

Keen to get your latest thoughts on WHC. I recall some commentary a while back that mentioned $4 being a possibility, is that still in play do you feel? Are the laws of supply and demand still likely a factor in this market which suggests there's upside in the short term or can the chinese keep tapping more supply by whatever means at their disposal?

Thanks

Mike

Answer

Hi Mike,

We still like WHC, especially at current levels, but China has clearly thrown a spanner in the works short-term. We like the risk / reward around $2.30 especially as WHC should be debt free in 2022/23 plus we feel the market is underestimating how long a transition to clean energy will actually take.

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Whitehaven Coal (WHC)

LAST UPDATED 19/11/2021 16:35

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