What are MM’s views on Bowen Coking Coal and Calix?
Hi James and Team Can you give us your current views on Bowen Coking Coal and Calix please. regards
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Answer
Hi,
Bowen (BCB) has been under pressure with weakness in the coal price however we remain bullish over the medium term. Coking coal markets remain tight and we expect to see price support coming through as a result. Bowen are also ramping up production and have recently received notice that their next mine expansion, Isaac River, is set to be approved.
Calix (CXL) also remains a key pick, though shares have been volatile this week. It has been hard to pinpoint the reason for the weakness. Talk of a large seller coming through could be one reason, while the papers have also been reporting on a lack of support for carbon capture projects could be another. Overall, the company said there was no specific reason for the selling in an update on Monday. We remain bullish here, this is a long term holding for the Emerging Companies Portfolio.
