Excellent point about coal pricing: “We have got some [coal supply] deals out there for the first quarter of next year which are at significant premiums to the index." “People bought coal from us at a premium to the index to ensure they get what they want. It is a northern winter kind of thing.”
On BHP assets; "The company has been viewed as a likely bidder for the coal assets that BHP is trying to sell,
But unfortunately it also has; "but Mr Schmidt said he had also been looking at copper assets recently."
I hope they don't. If they add another coal mine, they already know all the customers, the transport, the contacts. There is no relearning, there is only upscaling. There will be efficiencies in backoffice. They already have all of the expertise within the business.
However if they move into another comodity, there is no duplication anywhere. I suppose as long as it isn't a greenfield project, and they buy an existing mine with contracts in place and get the personnel along with it, then its an easier sell.
Honestly i'd prefer if they stayed pure coal play. Its much easier to resist ESG pressure when the alternative means complete death as the company closes. (as opposed to simply hiving off a portion of your business, ie the coal assets like BHP/South32 etc etc)
But i suppose they are looking for long term in a post coal world.
Then again the pragmatist in me is happy as long as whatever they decide is good value
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