I thought that China was an ongoing purchaser but in NHC's own presentation (slide 32) they reported a 31% decline in China imports so researched it and came up with another AFR article that said they wont need to import any after 5 years as they have sufficient after the economy shift to supply from internal resources. What that says for Steel I dont know but it suggests demand will be weak through the next cycle.
On another tack I was amazed that the coal to liquids has been written off - there are plants all over the world that has got this right. Seems like a few bad decisions have cost us dearly - the first being the purchase of the Oil business - I think we overpaid because they had to write off a lot even before the price collapse as the reserves they bought failed to be there. That has just got worse as I see it. The mine and approval - lack thereof must be costing us a lot. I am surprised they did not apply at least 5 years earlier as we only have 18 months to go before 2017. It seems like they wont go any further with that project I dont see them taking on that debt as well as this. I think they are hoping to get the nod to take over management of the project.
I really thought this was a banker in my portfolio and has not happened at all.
NHC Price at posting:
$1.85 Sentiment: None Disclosure: Held
(20min delay)
