@Matt Warder any idea why the coal names are rallying again? Especially BTU….we are still in shoulder season for met, and thermal is about to enter shoulder season? Seems like a good time to flip all short term trades for profits?
Mostly they are up because they were down…have heard anecdotally that coal sector was a popular short into earnings so the pod monkeys are just rotating out.
I dont think anything has fundamentally changed with regard to markets yet, but I assume you noticed me pounding the damn table on CNR last week?
Fair point Christian, but to be fair I’m not sure any of us - including engineers - know enough about coal seam gas and what is involved in removing it.
It would help if the Peaheads hadn’t lost their minds and overpaid for Moranbah in the first place!
Especially for a Queensland mine where the communist government helps itself to any windfall profits that might arise if the coal price eventually rebounds. The highest royalty rate of 40% kicks in at just $A300 per tonne and the thresholds are not indexed for inflation.
In BTU’s defense, tax law can change, but the Good Lord ain’t making any more low-vol, and those mines don’t come up for sale often. So “speak now or forever hold your peace” kind of situation.
There is an ASX listed company , ticker QPM that is based out of Moranbah. Ironically, it harvests coal gas and uses it to generate power or selling it directly. Not sure if it is involved here or would benefit. No position but I have been thinking about.
@Matt Warder any idea why the coal names are rallying again? Especially BTU….we are still in shoulder season for met, and thermal is about to enter shoulder season? Seems like a good time to flip all short term trades for profits?
Mostly they are up because they were down…have heard anecdotally that coal sector was a popular short into earnings so the pod monkeys are just rotating out.
I dont think anything has fundamentally changed with regard to markets yet, but I assume you noticed me pounding the damn table on CNR last week?
Makes sense, though they are down for a reason? Almost everyone losing money at current coal prices haha.
Yes on the CNR earnings selloff. Wish I’d jumped in alongside you with options haha.
I never do that…conviction was very strong, and confirmed by Paul Lang’s $500k insider buy.
It just seems like a symbiotic relationship, noting that I know nothing about coal seam gas and what’s involved in removing it.
Fair point Christian, but to be fair I’m not sure any of us - including engineers - know enough about coal seam gas and what is involved in removing it.
It would help if the Peaheads hadn’t lost their minds and overpaid for Moranbah in the first place!
Especially for a Queensland mine where the communist government helps itself to any windfall profits that might arise if the coal price eventually rebounds. The highest royalty rate of 40% kicks in at just $A300 per tonne and the thresholds are not indexed for inflation.
In BTU’s defense, tax law can change, but the Good Lord ain’t making any more low-vol, and those mines don’t come up for sale often. So “speak now or forever hold your peace” kind of situation.
There is an ASX listed company , ticker QPM that is based out of Moranbah. Ironically, it harvests coal gas and uses it to generate power or selling it directly. Not sure if it is involved here or would benefit. No position but I have been thinking about.
No idea on that one mate