Whitehaven Coal: M&A conundrum continues
About the author:
- Author name:
- By Tom Sartor
- Job title:
- Senior Analyst
- Date posted:
- 25 August 2023, 6:30 AM
- Sectors Covered:
- Junior (Emerging) Resources, Bulk Materials
- Whitehaven Coal's (ASX:WHC) key FY23 financials were in line due to quarterly reporting.
- The bigger-than-expected final dividend strongly surprised both us and the market.
- The dividend, but then suspension of the buyback, and WHC’s inability to comment, means it’s hard to get a read on its approach to the BHP asset sales.
- We think WHC is the front-runner for the BHP asset if it chooses. However we advocate a portfolio approach to coal sector investing while M&A uncertainty – with potentially binary short-term share price outcomes for WHC – plays out.
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