AAL – Alfabs Australia
As I have been a advocate of this stock, ill give more of my rationale/thinking;
- Company is focused on paying down debt and becoming debt free.
- “We are aggressively repaying debt while growing working capital in a disciplined and structured manner. This focus on balance sheet strength is crucial as we position ourselves to capitalize on future opportunities. As we work towards becoming a net debt-free company, our financial resilience will be a key asset as we move forward.“, Matthew Torrance (CEO) Annual Report
- Company is focused on bolt-on-acquisitions that fit with there existing business model, not trying to break into new and expensive industries; “FY25 and beyond our focus remains clear: we are committed to delivering on the growth strategy we have laid out with key growth pillars of new contracts, new mining equipment, refurbishments and bolt-on acquisitions“, Matthew Torrance (CEO) Annual Report
- Hire industry regarding Coal Mining, I cant imagine many new emerging mines would be wanting to purchase expensive mining equipment outright especially with the narrative around the long term viability of coal mining (seems like risk most wouldn’t want).
- Coal Mining is going to be a continued requirement globally as the AI Revolution takes place. Currently renewable is not reliable enough for the energy requirements needed for data centers.
I believe we will see a resurgence in coal demand globally for the next 2 – 5 years to meet the energy stability required for the advanced data centers globally. Nuclear will eventually overtake it in my opinion, however a Nuclear Power Plant takes on average 11 – 12 years to build, and I imagine money poorer nations will look at the opportunity cost of building a coal fired power plant or investing billions into nucelar…
Alfabs is well positioned to sell the “shovels” to the miners.
