If interest rates rise, when do you expect that to happen?
Agree it doesn't have a strong presence of Australian institutional support and that's not because "if interest rates may rise" there are other factors at play around institutions commitment to clean energy, china political tensions. DBI primary focus is on the metallurgical coal used in steelmaking, and not the thermal coal used in electricity generation. The Company is also planning to expand beyond its existing capacity of handling 85 million tonnes of coal annually once the negotiations with the regulator are complete.
Upside comes in Feb from their current negotiations with the regulator and from all reports that is going very well. It will be difficult to ignore the strong yield from consistent revenues currently 8.3% pa with a target to increase by 1-2% pa.
DBI Price at posting:
$2.19 Sentiment: Buy Disclosure: Held
