When a stock trades so cheap (less than 3 x operating cash flow), it suggests the worst possible news is already in the price, and that would include global warming.
Second, most of the value of BRL comes from coking coal, which is about steel making. Granted it will generate carbon, but the real culprit (when well meaning but misguided people talk about global warming) is thermal coal.
I don't buy the thinking "we need to shut down coal because of global warming". To read the case for coal, read the book "The Moral Case for Fossil Fuels" by Alex Epstein.
The problem of course is what our BRL's brilliant management will do with the cash they are furiously trying to waste by "hedging". Their get out of jail...I mean New Zealand...card is to invest in Jameson Resources' Canadian project...which looks like a reasonable enough investment.
Till then, just pray that they don't come up with ever more innovative ways to waste away the lottery ticket they keep winning every day with supposedly "super high margin" coking coal prices.
