In my last blog article I mentioned I had taken a position in Contango Holdings PLC. It’s an interesting company as it looks set to offer near-term cash flow generation (production targeted Q4 2020). I’ve wanted a couple of more near-term cash flow plays in the portfolio for a while for hedging purposes.
The production will be in the form of c.1mtpa of high quality coking coal, a critical ingredient for making steel and with healthy margins annual EBITDA should well exceed the current £10m Market Cap
If you want to know what’s going on with steel you can read this (after my blog lol!) “China’s $680b post-pandemic infrastructure sparks record steel output and soaring Fe price.” This should certainly be positive for coking coal too.
I hope you find it interesting and helpful, I have high hopes for this investment!
Research materials prepared based upon my own analysis and research. Accuracy cannot be guaranteed and research notes should not be taken as investment advice. Please always do your own research.