Outlook for Coal

Hi Jacky,

We are still bullish on coal stocks at the moment but its been a tough journey in recent times. Our logic is simple, while we believe Green Energy is the future we also believe the transition will prove tougher, slower and more expensive than many people believe which should be bullish for coal in the coming years. We saw a classic example of what we are expecting unfold this week in Victoria.

Victoria used more than 13% of its expected gas for energy generation for the entire year in just three days as breakdowns at a coal power plant and feeble renewable generation force it to rely on the fossil fuel vilified by the Allan state government to keep the lights on. The issue was compounded by a cold snap and weather conditions unfavourable to wind and solar.

• Victoria has run through 81% of the gas it was expected to use for the entire year, according to the energy market operator’s base case estimates. The situation illustrates the vulnerability of the States energy security.

In terms of India, it primarily produces thermal coal, which is used for power generation. Whereas Whitehaven (WHC) which we hold in our Active Growth Portfolio is focussing more on Met/Coking Coal which is used in steel production.

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Whitehaven Coal Ltd (WHC)

LAST UPDATED 13/06/2025 14:14

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Whitehaven Coal Ltd (WHC)

LAST UPDATED 13/06/2025 14:14