What’s happening with ASX 200 coal shares this week?

Happy coal miner.

Happy coal miner.S&P/ASX 200 Index (ASX: XJO) coal shares are ending a strong week with a strong performance on Friday.

In early trade the Whitehaven Coal Ltd (ASX: WHC) share price is up 0.8%; New Hope Corp Limited (ASX: NHC) shares are up 3%; and the Yancoal Australia Ltd (ASX: YAL) share price is up 1.4%.

The ASX 200 is in the green as well, up a slender 0.1%.

With today’s intraday gains factored in, investors who bought shares in any of the big coal stocks on Monday morning will be sitting on some outsized gains for the week.

Since the opening bell on Monday, New Hope shares have gained 6.1% while both Yancoal and Whitehaven shares are up 7.9%.

So, what’s been happening with the ASX 200 coal shares this week?

What’s been drawing investor interest this week?

Prices for thermal coal (primarily used to generate electricity) gained over the week, up roughly 4% from last week.

The coal price continued to trade near historic highs, at just under US$350 per tonne. That’s more than double the price that same tonne was fetching 12 months ago. And that’s continuing to see the ASX 200 coal shares rake in the cash.

New Hope’s strong performance over the week came despite the miner closing 8.8% lower yesterday. That followed on the company’s release of its quarterly update.

New Hope reported a 167% increase in underlying earnings before interest, taxes, depreciation and amortisation (EBITDA). That’s the raking in the cash part.

However, investors appear to have sold off the stock after the miner reported production slipped slightly as it struggles with wet weather and industry-wide labour shortages.

ASX 200 investor interest in the big coal shares also likely remains strong in light of their smashing trailing dividend yields.

At current share prices, New Hope trades at an 8.9%, fully franked yield; Whitehaven at a yield of 5.7%, fully franked; and Yancoal at a whopping trailing yield of 21.1%, unfranked.

How have the ASX 200 coal shares performed in 2022?

We know investors in ASX 200 coal shares this week were holding some outperforming stocks.

As for the calendar year, you’re unlikely to hear any complaints.

Since the opening bell on 4 January, the New Hope share price is up 138%; Yancoal shares have gained 88%; and the Whitehaven share price has soared 227%.

The post What’s happening with ASX 200 coal shares this week? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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.

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