Why has Yancoal rallied more than Whitehaven?

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Question asked 09/10/2021

Why has Yancoal rallied more than Whitehaven?

Hi James , Just wondering why Yancoal has outperformed WHC? WHC has performed very well , but I don’t know much about Yancoal. Cheers Craig

Answer

Hi Craig, the answer is around leverage. Yancoal has more debt, thus increased returns on the upside but also risk on the downside. It’s primarily owned by the Chinese. We prefer WHC given the Chinese dominance on the Yancoal share register.

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Yancoal Australia Ltd (YAL)

LAST UPDATED 09/10/2021 08:11

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