WHITF - Whitehaven Coal: Cheap With Sales Mix Potentially More Balanced Post Acquisition

2024-03-25 23:31:30 ET

Summary

• Whitehaven is using $2.3 billion to close a major acquisition this week.
• WHITF's acquisition of BHP's Daunia and Blackwater coal assets is expected to be transformative and generate significant cash flow.
• The Company's sales mix will be more balanced post-acquisition, enhancing its exposure to both the met and thermal coal markets.

Over the last two months, most coal stocks have struggled. However, there is one company, Whitehaven Coal (WHITF) from Australia that has taken a beating. I think the shares are cheap and most of the weakness is due to their recent asset acquisition....

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