Even if coal prices…, page-2

It has been a good while between posting activity for me, and I apologise to anyone I’ve ignored the last 6 months.

I’m still holding these and they’re now the second largest holding in my portfolio. Agree completely, I see no reason to sell at these levels, despite the price rise we’re potentially looking at better value now than we were a year ago. It’s unclear the prices that nhc will achieve over the next couple of years, but in all logical scenarios that I run, prices will be very profitable the next couple of years. As you said there is a very real possibility that they are entirely cash backed within 18 months at current market cap (ignoring dividends, new acland development ). Then there is the very real possibility of new acland being approved in the next few months, which is some serious potential upside with coal prices elevated the way they have been.
The supply side response is likely to be very muted in comparison to historical cycles, with it still being very difficult to get new coal mines approved in many jurisdictions (as we’re witnessing with new acland).