Few comments on my earlier list & your comments : 1) Bengalla 20% - The "ESG" world has changed since NHC bought Bengalla share. Taipower is under pressure to diversify its power sources & selling ownership of 20% Bengalla is my favourite outcome. Guaranteed supply agreement possible for Taipower. 2) & 5) Other Newc coal producer & port berth - Bengalla is a shareholder in a port berth in Newcastle - Brisbane's example to have the coal winning & rail & port facilities tied up would be the model. For this, NHC needs control & sufficient throughput to ensure smooth operation and no interference from bankers and other non-aligned actors. 4) Acland remediation - If Acland is to close entirely, then machinery withdrawal, overburden & civils, replanting & re-establishing of agriculture takes funds, Agree this could be self-funded. Not sure what value of Remediation Bonds (bank g'tees) are currently in place , or whether any banks have threatened to withdraw the bonds facility. 6) Milners cross-holdings - Milners "control" 60% of SOL now. After the Milton merger, they will control only 39% of a much larger entity. Historically, they hate anything below about 45%, so I think this is my favourite left-field option as NHC is a great future cash generator for them. I see them using NHC to help fund the increased "control" desired, regardless of what NHC does now or not. 7) Expand Bengalla - Thx for the additional info. Agree this is highly recommended.
In general, there could be one, or a combination , or all of the above within the financing options. Then again, there could be more left-fields out there.
NHC Price at posting:
$1.70 Sentiment: None Disclosure: Held
(20min delay)
