Lowering Our Long-Term Thermal Coal Price to USD 55 per Tonne but New Hope Remains Undervalued
We lower our long-term contract thermal coal price forecast from USD 67 to USD 55 per tonne. This is consistent with recent cuts to long-term iron ore and coking coal prices--soft demand as China transitions to a consumption-based economy. China has become the largest importer of seaborne thermal coal, yet in 2015, imports fell by 31% to 143 million tonnes. Sluggish growth in electricity demand in China is mainly being met by energy sources other than coal, while domestic coal supply has taken s...New Hope operates four reportable segments: Coal mining in Queensland (including mining related exploration, development, production, processing, transportation, port operations and marketing); Coal mining in New South Wales (including mining production, processing, transportation and marketing); Oil and gas (including oil and gas related exploration, development, production and processing); and Treasury and investments (including cash, held to maturity investments and available for sale financial assets).
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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