These ASX 200 coal shares are smashing 10-year highs on Tuesday

New Hope share price ASX mining shares buy coal miner thumbs upNew Hope share price ASX mining shares buy coal miner thumbs up

S&P/ASX 200 Index (ASX: XJO) coal shares have been on an upwards trajectory lately, leading these market favourites to peak at near-10-year highs today.

The Whitehaven Coal Ltd (ASX: WHC) share price lifted to its highest point since 2011 today – touching $6.19 in afternoon trade.

Meanwhile, shares in New Hope Corporation Limited (ASX: NHC) surged to trade at $4.52 today – the highest the stock has been since October 2012.

Shares in the coal companies have now gained 123% and 92% respectively year to date. For comparison, the S&P/ASX 200 Energy Index (ASX: XEJ) leapt nearly 24% this year while the ASX 200 has slumped 12%.

Let’s take a look at what’s been behind ASX 200 coal shares’ recent strong performance.

What’s driven these ASX 200 coal shares to 10-year highs?

There’s a reason behind ASX 200 coal producers’ recent brilliant performance. And it’s a simple one.

The price of coal has rocketed in 2022, driven higher by an energy crunch brought about by Russia’s invasion of Ukraine.

Newcastle coal futures are currently trading at US$396.05 a tonne, according to Trading Economics. That’s 133% higher than it was at the end of 2021 and around 9% lower than its record high of US$435 a tonne.

On that note, Whitehaven expects to report “its strongest ever” earnings for financial year 2022.

It’s flagged that its full year earnings before interest, tax, depreciation, and amortisation (EBITDA) could come in at a whopping $3 billion yesterday. That’s up from just $200 million in financial year 2021.

The positive outlook saw the Whitehaven share price lift 5% yesterday while that of New Hope gained nearly 3%.

And growing expectations China could soon welcome back Australian coal exports have also likely bolstered the ASX 200 coal shares.

No doubt all eyes will be on the energy giants when they release their full year earnings later this year.

The post These ASX 200 coal shares are smashing 10-year highs on Tuesday appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/wOIv3iS

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s