brand new to this so please forgive any fopars. YAL has been one...

brand new to this so please forgive any fopars. YAL has been one of my first purchases. I was looking for a pure play AUS coal producer preferably coking coal however to the best of my knowledge there is no such beast at the moment. It’s skinny pickings at best with NHC looking likes it’s dying out and the only other alternative being Whitehaven (pretty much all thermal).

YAL have picked up and developed some really quality mines over the last few years. If you have look at HVO the partnership with Glencore is a winner who have a good track record at running large scale efficient open cuts

Thermal coal prices are down a bit on last year however Coking Coal prices are still buoyant and the company has significant exposure in this market. I think that they will match or better last years earnings. On top of this they have worked on the cost structure closing several small marginal operations that didn’t deliver meaningful value (Donaldson ect).

The only thing that really bothers me is the large percentage of Chinese ownership. There is only limited visibility on sales revenue and how prices compare to current equivalent commodity pricing and this makes me a little nervous. The debt security arrangement is another potential problem however with reducing debt requirements this is becoming less of a worry.

thought or comments?