I agree that WHC should ‘stay with its strength’ in coal and not...

I agree that WHC should ‘stay with its strength’ in coal and not diversify its exploration and production activities into rare earths or other commodities. It faces a major task in developing and exploiting its own newly-acquired BMA assets, and success in that endeavour should deliver rich returns to its shareholders over many years.

As I read it, however, WHC’s significant investment in BRE is just that — an investment of funds in the expectation of returns — and does not signal any intention on WHC’s part to diversify its own exploration and production activities beyond its current focus on coal. Whether BRE proves to be a good investment time will tell; it would seem, however, WHC has made the judgement that this is a good use of some part of the (substantial) funds at its disposal.

Is that how others see it?