Not sure id fully agree with that. Haven't looked at YAL, and I do own NHC.. but..
NHC - production of 11.3Mt, spot of $150 ($157 realised last qtr) is $1.7B revenue. $80 FOB for cost of 900M, plus 175M in royalties, plus 220M sustaining capital, plus 133M growth capital, chuck in 20M for corporate (guess) only leaves $240M FCF, which for an EV of 3.5B today is only 6.9%.
WHC - production of 25.9Mt, spot of $230 is about $6B in revenue. $140 FOB for a cost of 3.6B, plus 700M in royalties (f*ing ow), $450M in capital, take $30M for corporate (guess) leaves $1.1B FCF, which on an EV of 5.8B is 20%.
I think both are ok, and will look to take an entry into WHC in due time (I don't think we are seeing rocket ships immediately), but id almost argue NHC is the lower margin producer with more torque to coal prices. It also pays out more dividends. But once WHC wipes the debt in say 24 months id expect it to step up also.
WHC Price at posting:
$5.72 Sentiment: Buy Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)