Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
A lot of discussion About Russian gas in the media and coal is often overlooked.
https://www.argusmedia.com/en/news/2295686-russia-coal-export-disruption-would-hit-germany-hardest
All stocks heading south at the moment but price of coal is rising and if putin invades it will probably go through the roof. The SP will correct very sharply I believe when the results are presented March 22nd.
A fair price could be around £7 but given it’s producing unfashionable coal the price may settle lower than that around 5.50 to 6.0 in 2022. But who knows?
I think this share has very considerable upside potential and, given the cash generation, it has FA downside potential.
The price reflects the premise that in say five years the assets will be worthless as the burning of coal will cease due to concerns about climate change. This is a nonsense as coal currently provides 70% of the world’s electricity production and all the countries which use the most coal have fast growing economies. Gas is a premium fuel which will be gobbled up by rich western countries and developing countries with fast growing economies and populations will have no option but you use coal, in my opinion. Coal is going to be a major source of electrical power generation for at least 40 years and probably longer. The SP does not reflect this reality. It should be around £6,
If Europe buys all the lpg then Asia will have to burn more coal.
https://www.telegraph.co.uk/business/2021/12/28/cargo-ships-divert-gas-china-britain/