Thinking about this further, I think AQC is probably quite a...

Thinking about this further, I think AQC is probably quite a good punt on a recovery in thermal coal prices.

I think it is fair to say:

- Thermal coal will remain an important energy source in the medium term
- Australian coal is higher quality (high in kcal, low in ash and impurities) and therefore likely slightly better for the environment
- Given a significant number of coal companies are currently loss making coal prices will have to rise in the medium term particularly given a large number of coal companies have already cut costs significantly i.e. the cost curve is unlikely to fall significantly further
- Tinkler is a proven money maker who seems to have an amazing ability to find undervalued coal projects and this time he is likely more focused on the downside risk
- Despite Tinkler not having any formal mining qualifications from my understanding he has a extraordinarily deep understanding of coal mining and the coal industry
- A lot of the issues from the boom won't be there this time i.e. there will likely be plenty of port and rail capacity, labour will be cheaper, equipment availability will be better etc
- Whether you want to invest alongside Tinkler or not, everyone will know AQC which has to be a big positive if things start to improve

So, bottom line - coal prices likely recovery medium term, Tinkler is probably one of the best guys to take a punt on in terms of riding a recovery. Clearly timing is everything, but if you think thermal coal prices will rise in the next couple of years AQC is probably the best punt on that you can get.

Go Tinkler.