anyone who has followed BRL on hotcopper knows I am not a great fan of management However even after applying a discount to the SP for this I am very surprised at the current SP. HCC prices remain near all time highs and the fall back, which has occurred often in the price after a quick rise in the past, has not happened. The 3 month average, which is commonly use to secure hedge price, is now $400 USD.........I suspect they will increase hedging from the current 15% of production. That aside the 3 month rolling average means that the 3/4 is going to be a screamer and insure the 4th 1/4 has a great result at worst and could well be another screamer. Getting back to basics there is a distinct possibility that NPAT for the full year is going to be 40cps and free cashflow significantly higher. Extraordinary that one can purchase shares at 80cps at the moment given there is a strong chance they will have about 50cps in the bank at the end of this FY........which is just over 4 months away. BRL management need to start paying a dividend to attract a different sort of investor to the register
BRL Price at posting:
79.0¢ Sentiment: Buy Disclosure: Held
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