1. abc.com D. Jesser 29.6.24 said "Mine's future in doubtMining...

1. abc.com D. Jesser 29.6.24 said

"Mine's future in doubt

Mining and Energy Union industry safety and health representative Jason Hill said there were fears the mine may never (my emphasis) reopen, with workers being sent home indefinitely.

Anglo American's Grosvenor Coal Mine produced its first longwall coal in May 2016 and opened with an anticipated life of more than 30 years.

Last year it produced 117 million tonnes of run-of-mine steel-making coal.

Since reopening, the mine has continued to report high gas levels (my emphases) detected through routine monitoring.

In late January, RSHQ confirmed it had been notified of a methane exceedence in work areas at the Grosvenor and Moranbah North coal mines".

Workers at underground Grosvenor Coal Mine in central Queensland evacuated after fire - ABC News

A long term closure of WHC will:-

. obviously benefit WHC, re reduced met supply from a major competitor

. even if Grosvenor closure is not long term, the serious questions over its safety will cause many importers to believe that Anglo (or a future owner) cannot "guarantee" future supply contracts ie force majeure, due to more problems there/contracts torn up. Best to buy, therefore, from WHC.

. probably increase the value of a partial sale of Blackwater, a much safer & reliable mine.

. & decrease the value (to zero $), obviously, of Anglo's sale of Grosvenor; & of the total suite of Anglo's coal mines for sale.
Will the reduced value of the suite assist WHC to make a winning bid (Anglo is obviously a keen seller of their suite)?





2 .Inflation is on the rise again, at 4% last week, in Australia- & many experts are predicting there is a real possibility the Reserve Bank will raise interest rates (The previous consensus was that rates had peaked, & would probably slowly decline).
Historically, commodity prices usually benefit from rising interest rates- they are regarded as a hedge against inflation.

Wealth Within Chief Analyst D. Gilham has, therefore, specifically recommended gas & oil stocks, as a possible beneficiary.
The same positive argument, however, equally applies to other fossil fuel commodities- including coal, & WHC.

Gilham 28.6.24 said

"Recently, Australians received unwelcome news: the Reserve Bank of Australia (RBA) announced that inflation is rising again... next months RBA meeting whether a rate hike is possible. This situation has many pondering how to mitigate the pressure, leading to the question: Is it time to consider commodity-related stocks?...

Historically, commodities such as gold, oil, and natural gas (& thermal & met coal, generating many billions of $ profits pa for Australia, & the ATO!= my words) have been effective hedges against inflation...".

Wealth Within weighs in on shock 4% inflation read – and stocks that could survive the gloom | 2024-06-28 | HotCopper