What’s happening with ASX 200 coal shares this week?

What's happening with ASX 200 coal shares this week?

Atop strongly outperforming capital gains, the ASX 200 coal shares trade at some highly attractive trailing dividend yields.

Bernd Struben

Author bio Bernd Struben earned his BA in economics from the University of Michigan in 1991, with post-graduate studies in environmental economics at the University of Connecticut. Over the years he’s written about and analysed the tourism industry in the Caribbean; Europe’s commercial real estate markets; and, since moving to Australia in 2010, global and Aussie share markets. Bernd studies geopolitical and macroeconomic trends, alongside sector and company specific data, to gauge what he believes could be tomorrow's best investments. In his free time, you might find Bernd at the beach with his family or working on his next science fiction novel. Areas of expertise Australian and global share markets Macroeconomic and geopolitical trends Real estate Education Economics, University of Michigan Favorite investment quote "The four most dangerous words in investing are: 'This time it's different." — Sir John Templeton

Published November 25, 2022 12:10 pm AEDT

S&P/ASX 200 Index (ASX: XJO) coal shares are ending a strong week with a strong performance on Friday.

In early trade the Whitehaven Coal Ltd (ASX: WHC) share price is up 0.8%; New Hope Corp Limited (ASX: NHC) shares are up 3%; and the Yancoal Australia Ltd (ASX: YAL) share price is up 1.4%.

The ASX 200 is in the green as well, up a slender 0.1%.

With today's intraday gains factored in, investors who bought shares in any of the big coal stocks on Monday morning will be sitting on some outsized gains for the week.

Since the opening bell on Monday, New Hope shares have gained 6.1% while both Yancoal and Whitehaven shares are up 7.9%.

So, what's been happening with the ASX 200 coal shares this week?

Happy coal miner. — Image source: Getty Images

What's been drawing investor interest this week?

Prices for thermal coal (primarily used to generate electricity) gained over the week, up roughly 4% from last week.

The coal price continued to trade near historic highs, at just under US$350 per tonne. That's more than double the price that same tonne was fetching 12 months ago. And that's continuing to see the ASX 200 coal shares rake in the cash.

New Hope's strong performance over the week came despite the miner closing 8.8% lower yesterday. That followed on the company's release of its quarterly update.

New Hope reported a 167% increase in underlying earnings before interest, taxes, depreciation and amortisation (EBITDA). That's the raking in the cash part.

However, investors appear to have sold off the stock after the miner reported production slipped slightly as it struggles with wet weather and industry-wide labour shortages.

ASX 200 investor interest in the big coal shares also likely remains strong in light of their smashing trailing dividend yields.

At current share prices, New Hope trades at an 8.9%, fully franked yield; Whitehaven at a yield of 5.7%, fully franked; and Yancoal at a whopping trailing yield of 21.1%, unfranked.

How have the ASX 200 coal shares performed in 2022?

We know investors in ASX 200 coal shares this week were holding some outperforming stocks.

As for the calendar year, you're unlikely to hear any complaints.

Since the opening bell on 4 January, the New Hope share price is up 138%; Yancoal shares have gained 88%; and the Whitehaven share price has soared 227%.

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