2022 picks

Coal is a big theme because coal prices are very high. U look at Whitehaven Coal in Australia:  FY22 EBITDA was $3 billion, compared to just $0.2 billion in FY21.

Geo Energy and Golden Energy  are our SG plays that will benefit on current trends around geopolitics, de-globalisation and inflation. Also, there is a premium to security of supply. 

Food Empire put out a profit alert for 6-m results. With the forex gain and higher ASPs, the profit should be eye-popping.  

Golden Energy & Resources Ltd (GER SP) rose 2.7%, with coal prices rising by 2.25% yesterday and Newcastle coal futures traded around $440 in September. China’s coal imports rose in August, exceeding last month’s level and hitting the highest in at least five years, as power utilities in the world’s biggest coal consumer sought overseas supplies to meet soaring demand in extreme hot weather. Additionally amid fears of revised growth expectations and continuing increases in European gas prices, the reliance on coal-powered energy generation is increasing.

-- KGI 

Commodity performance year to date
\(source: UBS Research, 11 October 2022)

The greatest gainer is coal!