Stanmore v Coronado, page-19

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sheepdogcapital

384 Posts.

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28/03/23

10:22

Post #: 66991109
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Originally posted by borano: ↑

Sector isn't doomed in my opinion. Sentiment is doomed short term. Thermal coal miners are much more doomed. The thermal coal price has halved/plummeted by 50% since 1 January. Coking coal on the other hand has traded way above $300 since 1 January this year and has held onto an average price of more than $350 over the last 2 months. Coronado only had 3 days of above average rainfall in January.

Many of these thermal coal miners are looking to coking coal. They know thermal coal is not the future.

CORONADO GLOBAL RESOURCES INC. is a leading international producer of high-quality Metallurgical Coal, an essential element in steel production. Our coals, transformed in the steelmaking process, support the manufacture of everyday steel-based products that enrich lives around the world – including steel needed for the manufacture of renewable energy infrastructure.

Green steel won't happen in the short to medium term. BHP and FMG are running pilot plants to determine how much it will cost as a replacement for coking coal. Nobody believes that both of these companies will find an alternative to coking coal that is profitable. Even so, it will make Coking coal even more attractive to countries/customers which will only increase demand which we all know what that means. Besides, they are saying that maybe Green steel won't happen until 2050.

I doubt Coronado is continuing to pursue any of BHP's assets. They don't have big pockets like the rest of the suitors. Coronado in my opinion is more focused on returning cash to shareholders. I believe that last dividend of half a cent was a "just in case" scenario but let's see what happens over the next couple of months.

A couple of days ago in The Australian.

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I agree, the thermal players are much more cashed up and have a greater desire to diversify.

In terms of bad news, QLD coking already went through royalties hell last year, unlikely to see more bad news...fingers crossed.

Keeping a keen eye on the weather..

CRN Price at posting: $1.57 Sentiment: Buy Disclosure: Held
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