NHC - General Discussion, page-56

NHC have done a number of great deals over the last 15 years.
- NHC bought 17.7% of Arrow Energy in July 2006. For 88million. Sold not long later for over half a billion.
- 2008 (at peak resource pricing after the first china resource boom) sold New Saraji coal deposit to BHP for A$2.45 billion after picking it up for peanuts. BHP renamed it to Saraji East and cancelled the project in 2012 due to low coal prices. Still on ice afaik.
- They then sat on high cash levels for years not doing anything.
- Bought Bengalla. Around 2016 (40% from RIO AU$616 million.) to 2018 (another 40% from WES and other holders for AU$860m)

So historically they have done fantastic purchases. (In fairness, they've had a few small failures, with smaller coal mining explorers (Northern?) they've bought.)

Currently they own;
- Bengalla. (NSW 80%) operating 10mtpa. Simple operation.
- NA3 (QLD 100%) pending 7.5mtpa - and they bought most of the farmland under it first so they keep most of the royalties themselves.
- QLD coal port. (100%) currently under-utilized, with spare capacity waiting on NA3
- A few small tenaments.
- Oil fields in the middle of nowhere producing a litte i think 100k barrels of oil? you'd have to read the financials to see.
- Converted old mining land to farmland. I think this 'we'll become a farming company conversion story' is overrated. And is mainly just used to show that they are responsible operators after mining ceases.

They did talk about acquisitions recently.
- Rumour mill was saying Mt Arthur (across the road from bengalla). Originally they declined, but were readded to the 2nd round, and raised 200million at the same time. So it seemed likely that a deal was going to occur. However, they stated ONLY if it had a mining lease extension. But the lease extension never happened, and now BHP are saying there will be no sale. (the high coal prices probably didn't help)
- At the time i also saw talk of copper. (video interview?) but they would only do a deal if the price was right. This could have just been posturing to try and get a better deal from BHP for mt arthur. Not sure.
- So their 200 million raising was at a low price, and they've done nothing with it. So for the time being this was a terrible deal, but considering they might have been able to pick up mt arthur for a song, you can forgive management for doing it. Its almost certain that it will be converted into shares which will cause dilution.

The only negatives beyond the pending future dilution is perhaps their low production for the last quarter.

Just have to sit back and see what happens, while counting the huge sums of cash that they are bringing in.