UBS sees medium, long-term upside to coal prices post NSW royalty hike

Coronado Global Resources

13/09/2023 05:16

** Analysts at UBS continue to see data points suggesting
medium/long-term upside to coal prices
    ** The New South Wales state government announced plans to
raise coal royalties for the first time since 2009 to between
8.8% - 10.8% from July 1, 2024
    ** Brokerage says Australia's Coronado Global Resources
 CRN.AX  presents strong leverage to higher metallurgical coal
prices; remains preferred stock 
    ** CRN exempt given operations in Queensland and USA - UBS
    ** UBS says change in coal royalties to affect EPS for coal
majors Whitehaven  WHC.AX , South32  S32.AX  and BHP  BHP.AX 
for FY25, which will fall by 7.1%, 1.6% and 0.3% respectively
    ** Marginally trims WHC PT to A$6.30/share from A$6.75/share
    
 Company Name       RIC        Current   Current PT
                               rating    
 BHP Group          BHP.AX     Sell      A$36
 South32            S32.AX     Buy       A$4.30
 Whitehaven Coal    WHC.AX     Neutral   A$6.30
 Coronado Global    CRN.AX     Buy       A$1.90
 Resources                               
 

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))