AZJ
Some useful reminders from the AZJ AGM.
Most of the coal they move is met coal, not thermal.
We (Australia) will continue to export met coal for a long time. That matters given the stock is priced for material earnings declines over the next decade.
The second point, what thermal they do move is mostly to Asia.
Thermal will go to zero, but as the recent energy crisis should have convinced you, this won’t be next year or the year after.
That is a decade long phenomenon. Australia is at the bottom of the cost curve, and sells predominantly to Asia, where the coal plants are young, and have long useful lives.
It might not be the most pleasant ESG outcome you can imagine, but it is necessary to keep the lights on.
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