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 Notes and Blogs prepared by @TheMoneySponge. These should not be taken as investment advice and accuracy in statements cannot be guaranteed. These are to assist other researchers who may wish to research further and serve as a starting point. I may hold a position in the company
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