Let's Talk About Coal

[Claudette]

Colin norris
Yup. They are a pack of fools wasting their tax payers money.

 

[justoffal]

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

LOL.....Big money has no such determination....big money is determined only to make more BIG MONEY..... If it comes from coal then that's what they will do. Your dream world of Corporate benevolence is a non starter. Coal plants in fact are being re-started all over the place right now.

JO

 

[Dana7360]

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 couldn't get past the lie in the first sentence.

Environmentalists have nothing to do with investment or no investment in coal.

Coal is a dying industry.

My state got off coal.

The result, we have the lowest electric rates in the nation.

We have more electricity than we use so we sell it for a profit to other states.

We have much cleaner air so much that we were able to stop smoging cars in 2020.

You can whine, cry and lie about coal you want. That won't change the truth or reality.

My state proves you and so many others very, very wrong.

 

[Dana7360]

"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.

Exactly.

Capitalism is preventing expansion.

There isn't enough money in It so there is no investment in it.

It's like a lot of other things.

We don't have high speed internet in rural areas because there's no money in it. Capitalism prevents many parts of our nation from having it.

Same with cell phone coverage.

It was the same with electricity. FDR fixed that with electrification.

I think it's wrong that private companies are allowed to only be where they can make money which forces the tax payers to pay for the other areas.

I think if they are going to be allowed to have mostly a monopoly in urban places, they should be obligated to put high speed internet and cell coverage in rural areas.

Not force us tax payers to pay for it. Then hand it over to a private company to make money.

 

[22lcidw]

I couldn't get past the lie in the first sentence.

Environmentalists have nothing to do with investment or no investment in coal.

Coal is a dying industry.

My state got off coal.

The result, we have the lowest electric rates in the nation.

We have more electricity than we use so we sell it for a profit to other states.

We have much cleaner air so much that we were able to stop smoging cars in 2020.

You can whine, cry and lie about coal you want. That won't change the truth or reality.

My state proves you and so many others very, very wrong.

Balancing environment and employment is important. It does no good if the unemployment rate goes sky high if the environment is purely pristine. There will be violent consequences when the resources supplied by others is lessened.

 

[Colin norris]

LOL.....Big money has no such determination....big money is determined only to make more BIG MONEY..... If it comes from coal then that's what they will do. Your dream world of Corporate benevolence is a non starter. Coal plants in fact are being re-started all over the place right now.

JO

Not wanting business to make money makes you sound like a communist.

I don't believe in corporate benevolence bullshit. I'm telling you ehat took place at Glasgow.

As for your statemenr regarding coal plants, I'm pretty sure that's a poor excuse for you being anti climate change. Why did they close them down in the first place? That makes no sense. Alternative sources is what is being built everywhere and you know that.

I don't understand why you are so ignor want to climate change. The whole world acknowledges it and doing something about it. But here you are, a nothing like me, who's an expert on it and no one is listening to you. I wonder why.