Resource Global Network
over-exposure to a single market, particularly “We invested in that operation to learn that one as volatile as the coal market, could
industry, but also because it provides a
be damaging to the company’s long-term
natural hedge, particularly as we use a lot
prospects.
of diesel for our truck fleet across our coal mines.
For example, in 2012 New Hope invested in a conventional oil company called Bridgeport
“Therefore having an investment in a
Energy, which proved to be a shrewd move
conventional oil company provides a natural
as the coal price downturn of the time was
financial hedge on oil price which is one of
to further deepen, reaching a new nadir in
our major cost drivers,” Stephan reasons.
2016.
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