BUZZ-Whitehaven starts new chapter with met coal after mines buy from BHP - Jefferies

Reuters04-22

** Analysts at Jefferies raise price target on Australia's Whitehaven Coal to A$9 from A$8.75

** The country's largest independent coal miner on Friday said a process to sell down 20% stake in newly acquired Blackwater mine was underway with interest from global steel producers, as it reported a rise in third-quarter production

** Jefferies says WHC is starting a new chapter welcoming in the Blackwater and Daunia coking coal mines that it had acquired form BHP Group for $4.1 billion

** Brokerage says co still expects to sell down 20-30% of Blackwater in a bid to improve balance sheet and capital returns prospects; reiterates "buy"

** We continue to favour the outlook for metallurgical coal, and believe thermal also has strong structural support - Jefferies

** Adds that the mines buy from BHP will prove to be a positive transformation for co-delivering, growth and a shift to metallurgical coal while maintaining a strong balance sheet

** Stock has risen 5.9% this year, as of last close

(Reporting by Rishav Chatterjee in Bengaluru)

((Rishav.Chatterjee@thomsonreuters.com;))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment