I agree with you coal is not dead yet and I Thungela is very attractive in my opinion.
I also took a look at the company and the cash flow production looks very attractive even with the possible downsides relating to supply chain issues and possibly higher environmental liabilities.
Also, It's surprising how many people won't take a rational view on coals future usage. I understand it is not the way to go long term and it is being phased out in most first world countries, but 10 minutes of research could lead you to see that countries in Africa, Asia, and Central America are dependent on coal and not in a position to move away from the energy source at the speed a country like the US might be able to.
Not even "other" countries, but even their own. The US and Germany both still generate a huge amount of electricity through coal. As I said: I don't like coal as it is dirty, but it is valued like it would never make money-
Indeed...the operating leverage at todays coal prices and those significantly below point to huge cashflows in my opinion and a big dividend come H2 results. Still, kind of conundrum on me for where to sell, the position has run up a lot yet fundamentals seem great. Think fair value is somewhere around 24-30 billion rand, but I do not think I will be holding to that point unless coal keeps climbing. I am afraid of getting caught on at the cyclical peak, but hopefully the dividend announcement/more coverage gets most of the value crystallized .
I agree with you coal is not dead yet and I Thungela is very attractive in my opinion.
I also took a look at the company and the cash flow production looks very attractive even with the possible downsides relating to supply chain issues and possibly higher environmental liabilities.
https://deepvaluedabblings.substack.com/p/thungela-resources-limited?r=rcv5a&utm_campaign=post&utm_medium=web&utm_source=
Thanks for that article. Seems like you are even more bullish on Thungela than I am.
Also, It's surprising how many people won't take a rational view on coals future usage. I understand it is not the way to go long term and it is being phased out in most first world countries, but 10 minutes of research could lead you to see that countries in Africa, Asia, and Central America are dependent on coal and not in a position to move away from the energy source at the speed a country like the US might be able to.
Not even "other" countries, but even their own. The US and Germany both still generate a huge amount of electricity through coal. As I said: I don't like coal as it is dirty, but it is valued like it would never make money-
Indeed...the operating leverage at todays coal prices and those significantly below point to huge cashflows in my opinion and a big dividend come H2 results. Still, kind of conundrum on me for where to sell, the position has run up a lot yet fundamentals seem great. Think fair value is somewhere around 24-30 billion rand, but I do not think I will be holding to that point unless coal keeps climbing. I am afraid of getting caught on at the cyclical peak, but hopefully the dividend announcement/more coverage gets most of the value crystallized .