Stating the obvious but Investors & Managers or specialist...

Stating the obvious but Investors & Managers or specialist sector Funders like Taurus generally take longer term view than retail investors. Do not tend to alter a business position when exposure to a commodity price experiences periodic price weakness. Helped considerably by access to Board and Management plans & insights to support ongoing commitments to their customer, BCB in this case.

personally think the sell off was overdone. There have been well documented operational headwinds over a period but some industry metrics cannot be discounted in my view:

• Chinese steel production peaked in 2020 & has weakened since.
• on other hand India has already overtaken China as largest importer of coking coal.
• steel production is expected to grow from 145mt to 230mt in next six years
• the expectation is that the additional demand from India should see coking coal markets remain supply constrained which must be good for high grade coking coal companies in future years

undeniable that BCB has had its operational issues in last 2 years, but not ruling out the focus on Ellensfield South being more positive. Recall reading this year in a broker report that this change in operations was expected to result in ‘strong’ positive operating cash flow. (If there has been any change to say ‘modest’ expectations then that should still be a tangible turnaround for the business).

the SP decline seems overdone. Accumulated some more today and looking forward to operational update per normal reporting periods.