Aurizon doing its level best to convince everyone it isn’t just an old coal haulage business.

The below is a nice slide, the opener from the CEO Connect forum, and it is indeed true. They paid a lot to diversify, but the new growth options are quite attractive.

Guidance reiterated, which is pleasing.

A little while ago AZJ got the regulatory approval to bolster the WACC + assumptions (an 8-handle in front of it, reflecting the higher bond yields and higher inflation in the regulatory reset).

We’ve been of the view that AZJ was a solid cash generator, with good growth options, trading at a reasonable price, with inflation and rate pass-throughs (as outlined in the sentence above).

Whilst the market has been slower than we’d like to realise value in the business, it is at least moving slowly in the right direction.

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