One fossil fuel is predicted to dramatically increase in value during the New Year, financial analysts said.
Macquarie Group significantly upgraded its coal price forecast for 2023, and expects the commodity’s value to keep rising in the next two years.
“It lifted its 2023 price projection by 58 per cent to an average of US$367.50 (A$565.74). Moreover, Macquarie boosted its coal price forecasts for 2024 and 2025 by 114 per cent and 124 per cent respectively,” Markets Insider reported.
The financial services company expects coal demand to remain higher than supply due to global shortages and developed economies repeatedly paying a premium. This suggests prices are expected to stay elevated for the unforeseeable future.
“The brokerage raised its coal price projection by 25 per cent to an average of US$410 (A$631.31) a tonne for the second half of 2022.”
By the year 2027 thermal coal is estimated to jump by 38 to 114 per cent while long-term price forecasts will soar 43 per cent.
“Fiscal 2023 (FY23) and FY24 earnings per share (EPS) forecasts for overweight-rated New Hope Group rise by 34 per cent and 163 per cent respectively, and by over 400 per cent from FY25,” FNArena reported.
“”BHP Group’s EPS forecasts are increased by 4 per cent to 6 per cent for FY23 to FY26 … [and] an outperform rating is retained for both companies.”
Related articles
Coal mine workers ‘blindsided’ by $776M project
Coal prices could exceed $648 a tonne says mining boss
New coal expansion exploration licence approved
Coal mine enters receivership with $1B owed.
Add Comment