Kestrel is not smack bang in the middle of the Bowen Basin. It's on the edge of the basin where the coal transitions from met to thermal very quickly. The kestrel West 500 long wall panels have a reasonable product, but, the 600/700 series are forecast to have poor quality coal. It's very possible that this transition of quality takes place in the 500 series.
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With inflation, and trump-onomics on the way, it's very likely that the 40% royalty rate in Queensland will make the 600 700 series panels of marginal economic viability. Already, the nearby corvus project is questionable as to its viability and Glencore has openly stated that the nearby Valeria mine has been shelved due to the 40% royalties... even though it's fully permitted and approved.
WHC Price at posting:
$6.65 Sentiment: Buy Disclosure: Held
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