Caution, share price is too high, page-854

I am not sure why there appears to be so much fear with what is going on with the share price. At the end of the day, the long term holders invest based on fundamentals. Last I checked, WHC generated 1.5b cash in a bad production quarter. When you annualise that (6b) and compare it to the marketcap of 8.4b, you realise how cheap the price is. The FY guidance is roughly 14.5 equity sales, which when averaged on QOQ basis is approximately 30% more than the equity sales in the previous quarter (3.625mT vs 3), so the above estimate of 6b is pretty conservative.

The market may not act like we want it to and reflect what the share price should be, but that doesn't take away from the profit it is making or adversely affect the operations in anyway. I obviously would like the share price to go up as well, but we do not have control over that. At some point, sooner or later, the market will realise what they are missing out and jump in. Even with the buy back situation, people need to realise that if the company is buying back shares at a lower $ value, that just means there will be more left on the balance sheet to be distributed to the shareholders as dividends - you can't ask for a better situation really.

There are 3 things that we need to worry about - russian/ ukariane war affecting coal prices (which currently is expected to go on for a while), potential taxes/royalties (which won't be an issue until the next election in march for NSW) and the weather (which you can't predict but they are expecting La nina to ease in the coming months). As long as these hold up, nothing else really matters.