Ann: June 2024 Quarterly Report, page-90

I know less than most on here, WHC is not one of my larger positions so I don't usually dwell. But I am interested overall in the politics and media side of coal industry as I have other exposure to Coal than just WHC.

I have noticed an abundance of media coverage of anything that could support a thesis that coal production anywhere is on the wane, because of climate concerns. There is so much money at stake in new Capex (debt and equity plus taxpayer and consumer funded) for the transition and left oriented media, ie most of it, especially AFR seems to be delighted to use anything at all to pad out its pages and take heat off the ALP.

I think everyone of us is susceptible to confirmation bias, and the tendency to be affronted by anything that opposes our own views. A very good book to read is "Thinking, fast and slow" by Daniel Kahnemann.

One of the reasons I liked the D and BW acquisitions for the WHC business is that I think it will be very much longer before there is any serious alternative to coking coal in the making of steel, and there is no resource I am aware of that comes close to the quality and scale of Bowen Basin. There are many ways to make electricity and coal is simply the cheapest, especially when you already have the plants.

I took a drive through the Bowen Basin area in October to learn more about it. I couldn't stop smiling for days after.