2023-03-21 11:34:10 ET
Australian coal miner New Hope will consider buying coal operations being dumped by BHP ( NYSE: BHP ) and others that can produce good quality coal and have long-term production permits, CEO Rob Bishop told Bloomberg in an interview Tuesday.
New Hope ( OTCPK:NHPEF ) "definitely" will assess the Daunia and Blackwater mines that BHP ( BHP ) said last month it wanted to sell.
Australia "makes sense" for acquisitions, but New Hope ( OTCPK:NHPEF ) is keeping a "high bar" for any potential deals as royalty hikes and price caps levied on domestic producers have increased the sovereign risk on investments, Bishop said.
Global underinvestment in new mines will continue to support prices, as demand for coal will continue to outstrip supply well past 2050, Bishop also said.
BHP's ( BHP ) "future looks good but the stock is not yet a buy," The Methodical Investor writes in an analysis published recently on Seeking Alpha .
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BHP coal assets eyed by Australia's New Hope, CEO says