Rising prices from the world market and the European Union’s cut off from Russian coal are the main reason why Australian companies that extract energy minerals are seeing their profits rise to record levels.
The demand is still increasing
Australian miners are also affected by the fact that, despite high coal prices, demand for their commodity has not decreased. In fact, it is rather the opposite. Because of rising gas prices, many countries are turning back to coal, whether as a source of electricity or heat.
Experts expect, Australia’s largest coal miner, Whitehaven, to post a record profit of around $1.3 billion (about $1.9 billion) for fiscal 2022. In connection with this, many experts predict that mining companies will also pay record dividends. Some might proceed to buy back part of their stocks.
What is the opinion of experts?
“Coal company shares are now outperforming the market. We recommend buying coal titles in the next three to six months,” analysts at consultancy Jefferies told Reuters. In the context of record profits, the Australian state of Queensland is also considering increasing mining fees from next year.
