BCB 3.45% 5.6¢ bowen coking coal limited

Coal stocks aren't being valued on earnings two/three years from...

  1. 6,023 Posts.
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    Coal stocks aren't being valued on earnings two/three years from today. Therefore, I can't see how a 10-15c price is achievable in 6-9 months... but... the market can do some funny things. Reading this forum, it looks like a lot of people bought into the hype of Bluff and over estimated the ability of a new player, paid to high a price and now don't want to let it go. I do like this company, but, it's not worth 40c again anytime soon. I'm happy to watch and take my time.

    Look again at the numbers in that screen grab I posted above. It uses a PE of 8x... no other coal company trades on such high multiples. Maybe Alpha Metallurgical Resources trades with a five x multiple, but, that's a special case with aggressive buybacks.

    @seenitb4 makes a good case with multiples, however, while us$90/t is a reasonable standard to aim for within the industry, its on the low side for BCB. I believe that the company should be able to lower costs, but, there are inherent costs which will make that us$90 cost difficult to achieve, railing, demurrage and port logistics being one of the more difficult challenges. Is that a $34/t railing/port cost? There's no spare capacity on the peak downs rail line and the distal ports are obviously more expensive to use. The challenge of building and retaining a skilled workforce will also be a drag on costs.

    https://hotcopper.com.au/data/attachments/5932/5932483-614af61141c5bd438360371ad14b1b11.jpg

 
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Last
5.6¢
Change
-0.002(3.45%)
Mkt cap ! $159.4M
Open High Low Value Volume
5.8¢ 5.9¢ 5.5¢ $519.7K 9.206M

Buyers (Bids)

No. Vol. Price($)
1 143881 5.5¢
 

Sellers (Offers)

Price($) Vol. No.
5.7¢ 50000 1
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