Regency Mines has a significant coal mining interests in the United States. The Rosa coal prospect is metallurgical grade coal used for the production of steel. Below is an abstract from a recent analyst note (see here) regarding Regency Mines coal interests.
The price of metallurgical coal has been rising steadily since 2016.
We now have Trump putting significant tariffs on steel imports (see here). These tariffs for steel can be up to 25%.
What will the impact be on the value of Regency Mines metallurgical coal interests located in the United States? It would be reasonable to assume steel production in the States will increase, increasing the demand for Met coal driving up the cost of Met coal.
Regency Mines in the analyst note they commissioned, stated they expected early profits to come from their Met coal interests.
With the Trump news yesterday you would expect this to be a significant catalyst to:
a) remove barriers, preventing early production of Met coal from happening.
b) increase the early profits RGM are expecting from their coal interests.
It looks like the long awaited returns from Regency Mines coal interests are about to materialise. Trump is turning Regency Mines American coal interests into a ‘gold mine’.