Will New Hope make money?, page-106

Thanks Sunny - good post

The biggest risk I see with this investment is not a fundamental one but the risk that New Hope's share price misses this upswing in the coal price.

On a spot coal price valuation, NHC is as cheap as it's been in the past 12 months but could easily dither around these levels as it's lacking a catalyst.

It's not a slam dunk but I am more than happy to hold on the basis of risk return.

My strong preference would be for NHC to stop paying dividends and build capacity for M&A. That's the long game here - hoovering up unloved but highly cash flow generative
assets are dirt cheap prices. I was disappointed they're paying the $0.04 but the Millners need some cash to keep the lights on and Soul Patts doesn't want to lose its streak of paying an increasing dividend for the past [50] years haha