In the current era with an increasing focus and interest in ‘clean energy’ while moving away from fossil fuels, one wouldn’t expect to be able to make money with coal companies. That’s a false perception as coal prices remain quite strong, and the share price of Whitehaven Coal has increased by in excess of 300% since my most recent article on the company now just over three years ago.
Source: Yahoo Finance
The coal producer has done very well, and it’s time to see if there’s a good chance the company could continue its strong performance.
There is some volume in Whitehaven Coal on the OTC market, but its domestic listing in Australia is much more liquid. The ticker symbol in Sydney is WHC, and the average daily trading volume in Australia is approximately 6.25 million shares. The current market cap is just over A$4.5B, giving Whitehaven a very respectable market capitalization.
Whitehaven completed its expansion in 2014 and 2015, and that was the main reason why I was so positive about this company in the summer of 2015: WHC was on the brink of almost doubling its coal production, which was anticipated to unlock some economies of scale that would be helpful to increase the operating margins.