Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hi guys Your thoughts on the future of coal companies like nhc and whc in light of the climate change push to get rid of the use of all fossil fuels I know it wont happen overnight but if they get their way it surely affects their future profitability Thanks Tony
Hi Tony,
In simple terms, we believe the transition to renewables will take longer than many anticipate and the demand for coal used in power generation (Thermal Coal) will remain strong for some time, and given a void of any real new supply, prices should rise. But not all coal is used in power generation, Metallurgical Coal is used in steel making and for a company like Whitehaven Coal (WHC), post the BMA acquisition, this will be something like ~70% of their earnings.
We have written extensively on this topic, with the Whitehaven (WHC) company page here, a great place to start.
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