Despite buying at a low price I have exited as: a) Margins are now very thin. Some coal mines in QLD running at a loss. b) Our huge open-cut mines are very efficient. Yet we seem unable to stem the constant rise in production cost. c) Our coal is truly world class but we face competition from all over the world where costs are less. eg Mongolia. d) Demand is still strong but I suspect it will peak in a few years time.
If/when some of WHC's competitors go belly-up... WHC will strengthen its position.... and I will consider re-entering. Instead I used the WHC cash to buy exposure to uranium which undoutedly has a serious supply problem. GLTAH.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)