Sure @skindiverHC, refer below...
O = Observation
O1: I think ~11% discount rate is a little high when they're using 8-9% for the likes of CBA & BHP for example...
O2: With A$2.5B in cash, and pending/new Qld mining royalty/tax is 'halting' significant investment across the industry in Qld, meaning less long-term CAPEX required, meaning probable 'returnn of capital' to holders, conservatively, payout ratio ~50%...
O3: EPS forecast are basically a conservative 'half' of the Morningstar figures, having worked and invested in coal-industry for some time, I don't see MET-coal demand reducing much for at least a decade, THERMAL likely to experience some reduced demand, 'blending and processing' options offer diversity of products to market/export...
O4: Global inflation appears far 'sticker' than we all anticipated, so my 'conservative guess' for EPS-growth is ~7%, factoring in inflation-influences, as well as some 'margin protection' across the sector (mining, logistics, marketing, milling, etc) vs the 18.4% Morningstar have penned in...
O5: Since 2013, WHC average ROE is 8.45% based on the WHC annual-reports, and as 'forward-looking' interest-rates likely fall, I suspect ROE can be improved, last year, WHC had a 46.4% ROE, 12.5% is another conservative guess based on macro-views...
ML
(20min delay)