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$6.82 whitehaven coal limited

Downside?, page-36

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FreedomInvestor

4,080 Posts.

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02/05/23

23:43

Post #: 67574620
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Originally posted by babytalk: ↑

True, nothing is a sure bet.

However, I think we'll see a much higher demand for electricity generation from the growing electrification of cars (with take up so far being faster than analysts projected), the rising living standards of China and India (refrigeration, middle class entertainment and appliances, expanding industry capacity, etc.) much faster than the ability for renewables to be brought online, connected to the grid (e.g. Labor's rewiring the nation scheme will pass through a lot of land holdings and communities that are not thrilled at all to host big power lines - expect hostile challenges to plans), and the small inconvenience that it has trouble providing energy 24/7. Given this, I see the need for fossil fuels remaining strong for some years (paritucaly coal which is cheap, even at current levels), and that the net zero policies, ESG regulatory constrictions around new mines will keep producers and market supply depressed.

We're at a unique junction in a global energy transformation where the West doesn't seem to comprend the rest of the world's continued need for reliable, cheap energy (and in some cases even their own need). This has created an opportunity for those unconstrained by ESG investment guardrails. It's a dynamic and volatile situation but there is a window for serious money to be made, IMO.

It's cool if other people think differently.

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Do you think government interventionism isn't a problem for coal companies going forward?

WHC Price at posting: $7.22 Sentiment: Sell Disclosure: Not Held
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