Still a lot of upside in CKA 6c to14c in weeks .....can see 27...

Still a lot of upside in CKA 6c to14c in weeks .....can see 27 on the horizon .

Restrained coal supply both here and overseas along with the recovery in electricity demand as the global economy reopens have pushed thermal coal prices to a record US$170 per tonne, more than triple their low in August last year. Industrial production is forecast to grow 4%% in 2022, and the company’s high quality thermal coal is in demand from low emission coal-fired power stations in Asia.

While I think the long-term picture for coal is less rosy as the world decarbonises, an undemanding valuation means Whitehaven shareholders should benefit as high coal prices allow it to rapidly repay debt and return cash to shareholders, likely causing a further re-rating in the stock. Our analyst team has a buy on WHC.