- Expanded capital management programme
- Additional longwall work at its Illawarra site
It’s fashionable nowadays to dismiss resource stocks as irrelevant or archaic in our digitalised age. Nevertheless, investors will have recently noticed just how much cash they throw off when prices are heading in the right direction. The percentage change in trading profits is often higher than the percentage change in sales – so-called ‘operational gearing’. Unfortunately, the reverse dynamic can also play out when prices head in the opposite direction. For now, aggregate global demand for energy and industrial metals remains healthy as economies yawn back into life on the easing of pandemic restrictions.