Coal Initiations: The Next Generation (and a couple of Coalden oldies)

Analyst Details
Company: Citigroup
Analyst: David Haddad

Summary

We initiate coverage with a Buy/High Risk recommendation and A$6.00 target price — White Energy owns a unique technology for producing binderless briquettes from low grade coal. The technique dries then reconstitutes sub-bituminous coals, thus raising the energy content by up to 50% to c.6,000kcal/kg while retaining low ash, sulphur and nitrogen, a plus for power generators. The technology has the potential to open up vast, low- grade deposits that are currently uneconomic in export markets.