Contango Research Note

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.

rock formation close up photography

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.

Ive now completed my research note and you can find it in the Research Area or just click here.

I hope you find it interesting and helpful, I have high hopes for this investment!

Disclaimer

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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