Portfolio manager claims coking coal could burn bright

Chris Judd from Cerutty Macro Fund talks with Katana Asset Management’s Portfolio Manager Romano Sala Tenna about metallurgical coal – also known as coking coal.

They discuss Whitehaven Coal (ASX:WHC); coking coal (used to make steel); thermal coal (used for electricity generation); coal pricing; and, political risks around coal.

Mr Sala Tenna discusses the company’s policy of returning capital to shareholders, and its acquisition of the Daunia and Blackwater metallurgical coal mines in a $3.2 billion deal announced last October.

The mines were previously owned by BHP Group (ASX:BHP) and Mitsubishi Development Pty Ltd. The Daunia mine backs onto WHC’s Winchester South asset.

Whitehaven last traded at $7.75.

Talk Ya Book was created by Chris Judd in 2019 as a show where fund managers could share their highest conviction investment idea but more importantly showcase their investment framework to the public.

In 2023, Chris joined the people he interviews in the world of funds management by creating the Cerutty Macro Fund. Chris is the founder and portfolio manager of the fund which looks to invest in long term, secular, macro trends.

Disclaimers: Juddcorp Pty Ltd ACN 635 629 631 is a corporate authorised representative (CAR) (CAR Number 1300536) of Boutique Capital Pty Ltd ACN 621 697 621 AFSL 508011.

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