Malabar Coal offers investors one of the few direct and undiversified exposures to Hunter Valley coking coal
Malabar Coal offers investors one of the few direct and undiversified exposures to Hunter Valley coking coal. The cycle is against it presently but, since listing in March 2013, experienced coal industry executives have moved it speedily along the development path having already demonstrated the existence of adequate resources for commercial development. What a pity it has to be located in New South Wales where the regulatory upheaval following earlier controversies over coal mine leases has created uncertainty for investors and companies. While much of this risk appears to have been priced in already, some greater clarity would be appealing and make this a candidate for an investor looking to buy near the bottom of the sector cycle. A PortfolioDirect review is available on request from the company.
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
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