The FY19 result revealed materially softer coal prices in the second half. Delays at Acland continue. The project still requires the mining and water licence to proceed and no further insight was provided.
Thermal prices appear to have found a floor, although Credit Suisse notes the company echoed Whitehaven Coal’s ((WHC)) commentary about the growing threat of seaborne supply from Russia.
Unless the price environment improves and/or there is progress on Acland, there is no catalyst in view, the broker asserts. Outperform rating and $3 target maintained.
Sector: Energy.
Target price is $3.00.Current Price is $2.42. Difference: $0.58 – (brackets indicate current price is over target). If NHC meets the Credit Suisse target it will return approximately 19% (excluding dividends, fees and charges – negative figures indicate an expected loss).
