Very good exposé. I wonder of you could elaborate the pros and cons regarding BTU; I guess many of us found coal that why but we look to you dear sir for - whatever quality out there.
BTU: very liquid name, optionable, and has a lot of price variability. Thermal US assets are mostly PRB and ILB; everyone thinks the utility markets they serve are in terminal decline so it comes with a lot of risk. Thermal assets have very little seaborne exposure and therefore are not capturing a lot of the spot upside. Met assets are not performing well due to various issues. They are winning bidder for BHP's met and thermal second tier assets in Australia, this will make BTU relevant again and depending on how they finance it could get interesting. I will eventually do a deep dive on BTU but I'm trying to do the less covered names first.
Thanks! Love the coverage and the US vs. Australia commentary.
Very good exposé. I wonder of you could elaborate the pros and cons regarding BTU; I guess many of us found coal that why but we look to you dear sir for - whatever quality out there.
BTU: very liquid name, optionable, and has a lot of price variability. Thermal US assets are mostly PRB and ILB; everyone thinks the utility markets they serve are in terminal decline so it comes with a lot of risk. Thermal assets have very little seaborne exposure and therefore are not capturing a lot of the spot upside. Met assets are not performing well due to various issues. They are winning bidder for BHP's met and thermal second tier assets in Australia, this will make BTU relevant again and depending on how they finance it could get interesting. I will eventually do a deep dive on BTU but I'm trying to do the less covered names first.
This is great content doing evaluation n comparison of diff companies time to time, Really helps put things into perspective. Very well appreciated
Thanks!
Thanks Dyer, what do you think of Yancoal?
I really don't have an opinion or know much about them. They're the least interesting Aussie name.. look to WHC NHC SMR CRN or CKA.
Thank you! Why not Coronado?
I always forget one at least.. looking at the chart now and Coronado honestly looks pretty good from a r/r standpoint alongside the other met co's.