Bulk commodity juniors punished

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A few thing are beginning to break as bulk commodity alarms go off. The thermal and coking coal crashes have claimed Whitehaven:

Goldman Sachs has cut its target price for Whitehaven Coal by 7 per cent after the coal miner’s inaugural investor day.

The target price was cut to $2.70 a share from $2.90 a share due to a weaker outlook for thermal and semi-soft coal and negative free cash flow over the medium term (driven by growth capex).

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.