Thoughts on New Hope Corp (NHC) please
How do you think NHC will perform over the next 12 months
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Answer
Hi Colin,
We like the medium term outlook for coal but its likely to be a volatile journey over the next few years, as it has been post-COVID.
New Hope (NHC) has outperformed Whitehaven (WHC) into November with plans to buy BHP’s assets weighing on WHC but now that’s behind us and activist Bell Rock Capital have exited a large part of their WHC position we believe this underperformance will be reined in, i.e. expect NHC to underperform into Christmas – so far in 2023 NHC is down -12% and WHC -24%. Ultimately, we prefer WHC now for growth while NHC remains our preferred income play in the space.
- MM holds NHC in our Active Income Portfolio.
