Every now and again I feel tempted by S32.

It is diversified, with exposures to metals useful in the energy transition.

It’s on a cheap headline PE.

It is net cash, thus the balance sheet is strong.

Against that, 30% of it is coal, mostly met coal. It isn’t that low on the cost curve.

And the price of coal is coming off, quite aggressively, as global supply, and key rail corridors that replace seaborne demand, open up.

The business also has a sizeable exposure to alumina and aluminium, both of which are very hard to make money off, at the moment.

Now, if met coal goes back to $150, or under, it is easy to see S32 back at $2.50.

So, I guess we will resist the temptation, once more.

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