Coal prices solid lead indicator for BOL

Also, coal prices continue to strengthen and remain at very high levels relative to the past 5 years. With ~25% of BOL's overall revenue exposure generated from Coal customers this is a very attractive starting point. With BOL's customer base generating very high ROICs on each incremental tonne of production, production volumes are forecast to increase strongly from here. This will require greater crane utilisation. Importantly, given the scarcity of Coal investment over the past 5 years at existing facilities this also augurs well for catch up spend in addition to increased production related spend. It also augurs well for growth capex for these players which would be even more bullish. Adani appears more likely too as a side note too. There have been numerous articles in the AFR in recent weeks discussing Coal prices, tightening equipment rental markets and increasing production forecasts. This undoubtedly points to strong conditions in BOL's key end market. When this is coupled with very favourable infrastructure and wind farm conditions, strong Revenue growth is a high probability. Given each additional dollar of Revenue generates very high incremental returns for BOL, the value creation is significant.....and will presumably be reflected in BOL's share price in the next few months. The AGM is in November and BOL has historically provided a market update. All anecdotal and industry feedback appears very bullish. Despite this the stock trades at a 40% discount to book value and 10x FCF........