Originally posted by Cashmeoutside:
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This is a big claim to make. And what is 60% overvalued - the equity or the EV? Cos it is the equity you’re buying…
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Obviously missing the cash debt positions. As you've noted. .
Yes, there's a higher FCF with whc... which is going to pay down debt, but, the lower realised prices and greater costs will push that payback time out, delaying the return. Therefore I'm getting closer to 5x multiple and 3x multiple, which gives me that 60/40 response above. 25c divvy from Yancoal vs 6c divvy from WHC NSW operations...
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Yancoal just looks better at the moment...
(20min delay)