WHC Quaterly

Gents,
It seems that recent sentiment is negative and indicating that WHC is fully priced. I beg to differ - I think that this quarter will be the one to watch for WHC. AUD Thermal coal prices have increased substantially from where they were in January. The cost of production has likely remained stable and even possibly declined slightly. Borrowing costs have come down significantly from last year with RBA further cutting rates. Modelling these items have convinced me that we should see a step change in cashflows for Whitehaven this period (If not in this period, then in the next as we see contracts roll off).
Recent media commentary indicates that coal asset sales are occurring in the industry and once one of these tier 1 assets get sold, the multiple should trickle down to be reflected in the SP.
As always, DYOR.​