Let's Talk About Coal

[excalibur]

Thanks to environmental wackos investment in expansion haven't happened and the ESG crowd is responsible for that.

So, your cost of electricity is rising (Thermal Coal) as is the cost of steel (Met Coal) and, in the end, consumers will pay that cost as well.

...

For investors new to the space:

• Thermal coal, also known as 'steaming coal' or just 'coal', is widely used as the principle means of generating electricity in much of the world.
• Metallurgical coal or coking coal is a grade of coal that can be used to produce good-quality coke. Coke is an essential fuel and reactant in the blast furnace process for primary steelmaking.

Thermal coal is a byproduct that is used to generate electricity. In a normalized environment thermal coal is used to generate cheap electricity. When natural gas prices spike, the demand for thermal coal spikes and electricity generators substitute cheap thermal for expensive natural gas. This phenomenon is happening now. Natural gas prices have spiked to record highs, leading to thermal coal prices increasing in anticipation of a cold winter and on the back of lack of supply from natural gas.

...

Overall, if you own met coal miners, the selloff of thermal coal names is only a short-term distraction with no real meaning. Met coal prices are still at record levels and miners are announcing their contracted books for 2022 and beyond.

1. Arch Coal announced they are selling 400,000 tons into 2022 at a contracted price of $230 per ton. I am expecting the 2022 contracted book to continue to increase going into the holiday season.
2. Coronado Global Resources announced that 32% of their domestic met coal production would be sold at $187 per ton.
3. Ramaco Resources announced that they will be selling 56% of their production at $196 per ton.
4. I’m expecting the remaining miners who have not announced their 2022 contracts to drop them over the next few weeks, which could act as a catalyst for met coal miners.

I suspect that the met coal industry, which has been a beaten battleground filled with bankruptcies, combined with the lack of capital investment into building more supply, will severely hinder any additional supply coming into the market. No one is investing in building new mines at a large scale. Banks are not lending to the space. And woke ESG focused investors are long gone.

...​

Let's Talk About Coal

Investors, I wanted to spend the morning talking about coal. I received a lot of messages yesterday with coal stocks down across the board. To be upfront and clear, I am not an expert in any particular sector. I go where the busted and broken businesses live. Sectors that no one else wants to...

www.alphaletter.co

 

[SassyIrishLass]

China loves it

 

[JackOfNoTrades]

Thanks to environmental wackos investment in expansion haven't happened and the ESG crowd is responsible for that.

So, your cost of electricity is rising (Thermal Coal) as is the cost of steel (Met Coal) and, in the end, consumers will pay that cost as well.

...​

​

For investors new to the space:​

​

• Thermal coal, also known as 'steaming coal' or just 'coal', is widely used as the principle means of generating electricity in much of the world.
• Metallurgical coal or coking coal is a grade of coal that can be used to produce good-quality coke. Coke is an essential fuel and reactant in the blast furnace process for primary steelmaking.

Thermal coal is a byproduct that is used to generate electricity. In a normalized environment thermal coal is used to generate cheap electricity. When natural gas prices spike, the demand for thermal coal spikes and electricity generators substitute cheap thermal for expensive natural gas. This phenomenon is happening now. Natural gas prices have spiked to record highs, leading to thermal coal prices increasing in anticipation of a cold winter and on the back of lack of supply from natural gas.​

​

...​

​

Overall, if you own met coal miners, the selloff of thermal coal names is only a short-term distraction with no real meaning. Met coal prices are still at record levels and miners are announcing their contracted books for 2022 and beyond.​

​

1. Arch Coal announced they are selling 400,000 tons into 2022 at a contracted price of $230 per ton. I am expecting the 2022 contracted book to continue to increase going into the holiday season.
2. Coronado Global Resources announced that 32% of their domestic met coal production would be sold at $187 per ton.
3. Ramaco Resources announced that they will be selling 56% of their production at $196 per ton.
4. I’m expecting the remaining miners who have not announced their 2022 contracts to drop them over the next few weeks, which could act as a catalyst for met coal miners.

I suspect that the met coal industry, which has been a beaten battleground filled with bankruptcies, combined with the lack of capital investment into building more supply, will severely hinder any additional supply coming into the market. No one is investing in building new mines at a large scale. Banks are not lending to the space. And woke ESG focused investors are long gone.​

​

...​

Let's Talk About Coal

Investors, I wanted to spend the morning talking about coal. I received a lot of messages yesterday with coal stocks down across the board. To be upfront and clear, I am not an expert in any particular sector. I go where the busted and broken businesses live. Sectors that no one else wants to...

www.alphaletter.co

Sigh...this..again.
Behold, your coal killer. And no, it wasn't anything "woke".

Here's what really killed the coal industry

Coal isn't as easy to understand as a few lines from a stump speech on the campaign trail.

www.businessinsider.com

 

[Dekster]

Thanks to environmental wackos investment in expansion haven't happened and the ESG crowd is responsible for that.

So, your cost of electricity is rising (Thermal Coal) as is the cost of steel (Met Coal) and, in the end, consumers will pay that cost as well.

...​

​

For investors new to the space:​

​

• Thermal coal, also known as 'steaming coal' or just 'coal', is widely used as the principle means of generating electricity in much of the world.
• Metallurgical coal or coking coal is a grade of coal that can be used to produce good-quality coke. Coke is an essential fuel and reactant in the blast furnace process for primary steelmaking.

Thermal coal is a byproduct that is used to generate electricity. In a normalized environment thermal coal is used to generate cheap electricity. When natural gas prices spike, the demand for thermal coal spikes and electricity generators substitute cheap thermal for expensive natural gas. This phenomenon is happening now. Natural gas prices have spiked to record highs, leading to thermal coal prices increasing in anticipation of a cold winter and on the back of lack of supply from natural gas.​

​

...​

​

Overall, if you own met coal miners, the selloff of thermal coal names is only a short-term distraction with no real meaning. Met coal prices are still at record levels and miners are announcing their contracted books for 2022 and beyond.​

​

1. Arch Coal announced they are selling 400,000 tons into 2022 at a contracted price of $230 per ton. I am expecting the 2022 contracted book to continue to increase going into the holiday season.
2. Coronado Global Resources announced that 32% of their domestic met coal production would be sold at $187 per ton.
3. Ramaco Resources announced that they will be selling 56% of their production at $196 per ton.
4. I’m expecting the remaining miners who have not announced their 2022 contracts to drop them over the next few weeks, which could act as a catalyst for met coal miners.

I suspect that the met coal industry, which has been a beaten battleground filled with bankruptcies, combined with the lack of capital investment into building more supply, will severely hinder any additional supply coming into the market. No one is investing in building new mines at a large scale. Banks are not lending to the space. And woke ESG focused investors are long gone.​

​

...​

Let's Talk About Coal

Investors, I wanted to spend the morning talking about coal. I received a lot of messages yesterday with coal stocks down across the board. To be upfront and clear, I am not an expert in any particular sector. I go where the busted and broken businesses live. Sectors that no one else wants to...

www.alphaletter.co

We have gotten most of our zappy zaps from hydro and natural gas for as long as I can recall.

 

[excalibur]

Sigh...this..again.
Behold, your coal killer. And no, it wasn't anything "woke".

You obviously didn't read the OP or you would have seen how high coals prices are being sold forward. There is no excuse for your ignorance then.

This too:

Metallurgical coal or coking coal is a grade of coal that can be used to produce good-quality coke. Coke is an essential fuel and reactant in the blast furnace process for primary steelmaking.​

 

[excalibur]

We have gotten most of our zappy zaps from hydro and natural gas for as long as I can recall.

You obviously didn't read the OP or you would have seen how high coals prices are being sold forward. There is no excuse for your ignorance then.

This too:

Metallurgical coal or coking coal is a grade of coal that can be used to produce good-quality coke. Coke is an essential fuel and reactant in the blast furnace process for primary steelmaking.​

 

[Dekster]

You obviously didn't read the OP or you would have seen how high coals prices are being sold forward. There is no excuse for your ignorance then.

This too:

Metallurgical coal or coking coal is a grade of coal that can be used to produce good-quality coke. Coke is an essential fuel and reactant in the blast furnace process for primary steelmaking.​

Let me know how today's price of coal affects the electrons I get from a 3 hydroplants built before I was born and two natural gas plants that were built decades ago then. I am all ears.....

 

[JackOfNoTrades]

You obviously didn't read the OP or you would have seen how high coals prices are being sold forward. There is no excuse for your ignorance then.

This too:

Metallurgical coal or coking coal is a grade of coal that can be used to produce good-quality coke. Coke is an essential fuel and reactant in the blast furnace process for primary steelmaking.​

"Thanks to environmental wackos investment in expansion haven't happened and the ESG crowd is responsible for that".

First line of your post. Did I misinterpret it in any way? Expansion hasn't happened because it isn't FINANCIALLY viable.

 

[occupied]

Time marches on except in coal world. While alternatives invested in innovation Big Coal invested in politicians.

 

[Likkmee]

Thanks to environmental wackos investment in expansion haven't happened and the ESG crowd is responsible for that.

So, your cost of electricity is rising (Thermal Coal) as is the cost of steel (Met Coal) and, in the end, consumers will pay that cost as well.

...​

​

For investors new to the space:​

​

• Thermal coal, also known as 'steaming coal' or just 'coal', is widely used as the principle means of generating electricity in much of the world.
• Metallurgical coal or coking coal is a grade of coal that can be used to produce good-quality coke. Coke is an essential fuel and reactant in the blast furnace process for primary steelmaking.

Thermal coal is a byproduct that is used to generate electricity. In a normalized environment thermal coal is used to generate cheap electricity. When natural gas prices spike, the demand for thermal coal spikes and electricity generators substitute cheap thermal for expensive natural gas. This phenomenon is happening now. Natural gas prices have spiked to record highs, leading to thermal coal prices increasing in anticipation of a cold winter and on the back of lack of supply from natural gas.​

​

...​

​

Overall, if you own met coal miners, the selloff of thermal coal names is only a short-term distraction with no real meaning. Met coal prices are still at record levels and miners are announcing their contracted books for 2022 and beyond.​

​

1. Arch Coal announced they are selling 400,000 tons into 2022 at a contracted price of $230 per ton. I am expecting the 2022 contracted book to continue to increase going into the holiday season.
2. Coronado Global Resources announced that 32% of their domestic met coal production would be sold at $187 per ton.
3. Ramaco Resources announced that they will be selling 56% of their production at $196 per ton.
4. I’m expecting the remaining miners who have not announced their 2022 contracts to drop them over the next few weeks, which could act as a catalyst for met coal miners.

I suspect that the met coal industry, which has been a beaten battleground filled with bankruptcies, combined with the lack of capital investment into building more supply, will severely hinder any additional supply coming into the market. No one is investing in building new mines at a large scale. Banks are not lending to the space. And woke ESG focused investors are long gone.​

​

...​

Let's Talk About Coal

Investors, I wanted to spend the morning talking about coal. I received a lot of messages yesterday with coal stocks down across the board. To be upfront and clear, I am not an expert in any particular sector. I go where the busted and broken businesses live. Sectors that no one else wants to...

www.alphaletter.co

I need to go grease my windmill. Thanks !

 

[Colin norris]

Thanks to environmental wackos investment in expansion haven't happened and the ESG crowd is responsible for that.

So, your cost of electricity is rising (Thermal Coal) as is the cost of steel (Met Coal) and, in the end, consumers will pay that cost as well.

...

For investors new to the space:

• Thermal coal, also known as 'steaming coal' or just 'coal', is widely used as the principle means of generating electricity in much of the world.
• Metallurgical coal or coking coal is a grade of coal that can be used to produce good-quality coke. Coke is an essential fuel and reactant in the blast furnace process for primary steelmaking.

Thermal coal is a byproduct that is used to generate electricity. In a normalized environment thermal coal is used to generate cheap electricity. When natural gas prices spike, the demand for thermal coal spikes and electricity generators substitute cheap thermal for expensive natural gas. This phenomenon is happening now. Natural gas prices have spiked to record highs, leading to thermal coal prices increasing in anticipation of a cold winter and on the back of lack of supply from natural gas.

...

Overall, if you own met coal miners, the selloff of thermal coal names is only a short-term distraction with no real meaning. Met coal prices are still at record levels and miners are announcing their contracted books for 2022 and beyond.

1. Arch Coal announced they are selling 400,000 tons into 2022 at a contracted price of $230 per ton. I am expecting the 2022 contracted book to continue to increase going into the holiday season.
2. Coronado Global Resources announced that 32% of their domestic met coal production would be sold at $187 per ton.
3. Ramaco Resources announced that they will be selling 56% of their production at $196 per ton.
4. I’m expecting the remaining miners who have not announced their 2022 contracts to drop them over the next few weeks, which could act as a catalyst for met coal miners.

I suspect that the met coal industry, which has been a beaten battleground filled with bankruptcies, combined with the lack of capital investment into building more supply, will severely hinder any additional supply coming into the market. No one is investing in building new mines at a large scale. Banks are not lending to the space. And woke ESG focused investors are long gone.

...​

Let's Talk About Coal

Investors, I wanted to spend the morning talking about coal. I received a lot of messages yesterday with coal stocks down across the board. To be upfront and clear, I am not an expert in any particular sector. I go where the busted and broken businesses live. Sectors that no one else wants to...

www.alphaletter.co

The world go social community have pledged 130 trillion supporting moving away from coal.
Does that tell you anything?

 

[excalibur]

Let me know how today's price of coal affects the electrons I get from a 3 hydroplants built before I was born and two natural gas plants that were built decades ago then. I am all ears.....

You poor thing. Met coal affects steel prices, which eventually all consumers will pay for.

 

[excalibur]

The world go social community have pledged 130 trillion supporting moving away from coal.
Does that tell you anything?

Has ZERO to do with the rising coal prices, including for Met or coking coal.

 

[excalibur]

"Thanks to environmental wackos investment in expansion haven't happened and the ESG crowd is responsible for that".

First line of your post. Did I misinterpret it in any way? Expansion hasn't happened because it isn't FINANCIALLY viable.

The ESG crowd has targeted banks that would normally loan the funds for expansion.

And maybe you could read the OP and gain some understanding? Nah, probably not.

 

[excalibur]

Time marches on except in coal world. While alternatives invested in innovation Big Coal invested in politicians.

Another derp who didn't read the OP.

 

[miketx]

 

[Dekster]

You poor thing. Met coal affects steel prices, which eventually all consumers will pay for.

So you lied when you claimed my cost of electricity was raising because of coal prices. Gotcha.

 

[occupied]

Another derp who didn't read the OP.

I read what you posted, so what? No one is crying about the plight of the coal industry except those who have a personal stake in it. What's your angle?

 

[Colin norris]

Has ZERO to do with the rising coal prices, including for Met or coking coal.

I know that. My point is China is driving coal prices currently. It shows the determination of big money to cut greenhouse gases.

 

[JackOfNoTrades]

The ESG crowd has targeted banks that would normally loan the funds for expansion.

And maybe you could read the OP and gain some understanding? Nah, probably not.

So basically, you backed yourself into a corner by posting an article you thought was going to make your point, put an inflammatory opening statement in, got called out on it, and now, you're backpedaling. Bout cover it?

There is no investment in coal because it's cheaper to invest in and produce natural gas.
Environmental whackos didn't do this. Republicans and Democrats didn't do this....the COAL COMPANIES did.