YAL valuation and potential final dividend, page-71

There is concern around Yancoal's SP. Market sentiment very often defies logic. Yes, Yancoal is generating great returns in dividends and increasing profits. So it doesn't make sense...But to explain this, look at western thinking right now.

Coal is being crucified as the worst thing ever and global warming is the big doomsday scenario. While renewables is now hailed as the " saviour of civilisation", billions of tax payers dollars are being pumped into one of the biggest gravy con trains in history. A fundamental flaw in the global warming debate is that there isn't proof that human emissions of CO2 actually drives global warming. To say the evidence has been "proven" in any science is a cause for alarm.

Western countries feel they have to repair the damage they feel they have caused, which means self-flagelating ourselves to end up with ever growing energy costs and wasteful government debt. This is having a huge flow on to our standards of living (such as not able to afford running air-conditioning or heaters...!) to businesses winding back or shutting up shop.And who does everyone blame for the energy increases? Totally the fossil fuel industry, of course!!!

Asia isn't so stupid. They want what we have had, the luxury of tried and proven power generation. Renewables are not that simple- it has big environment impacts in production and waste. So Asia continues to build more coal fired power stations, even replacing older stations . Asia is becoming the next power house of the future. It will be too late when the people of the west finally wake up to being duped. I visited Ireland and it has changed enormously in the last 20 years with big money spent on renewables. It has become so expensive with high unemployment and disillusioned.

To conclude, I see the demand for coal to continue well into the future. Let's not kid ourselves and think renewables will decrease out power bills, fulfill our energy needs and reduce this so called 'carbon footprint'. So on that point, why would any coal producing company consider side-lining into renewables- it's a wasteful exercise just to impress the masses.

No, I don't see coal prices bottoming out any time soon.
All of above, is of course, my opinion based on my own observations. DYOR.