just to add German rivers becoming navigable again means the coal which is stocked at ARA ports can actually reach the power plant. This means coal consumption should go up to replace and save gas. In terms of which coal is suitable for consumption in Germany the following should be noted: Russian coal which tends to have ultra low sulphur content is uduslly mixed with ultra high sulphur US coal to fabricate the right level (between o.5 and 1.5%). It means that now that Russian supply is drying up, Germany will need to source from either Colombia, RSA, Indo or Oz to meet their quality requirements. With all the existing supply constraints (possibly exacerbated by another covid wave), Europeans will be all over the place to try and secure the right quality of coal. In doing so they will meet fierce competition from Asian buyers trying to do exactly the same. This will support prices for the foreseeable future. Lastly, as ridiculous as current price levels for coal may seem, they are still dead cheap compared to gas price equivalent per unit of electricity generated. The world needs coal and it needs more than there is available to mitigate the economic and social impact of the mess Europe got itself and the rest of the world into by recklessly disposing one of the most important pillars of the modern world energy system. Challenging times for many however I am thankful to be deeply invested in WHC (and other fossil fuel miners) which in my view provides the best possible risk mitigation strategy against all that lies ahead.
WHC Price at posting:
$8.48 Sentiment: Hold Disclosure: Held
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