I'm wondering if Consol's emphasis on debt reduction makes sense. If they have fixed debt at low rates, it would be much better to hang on to it. If variable rate debt, then yes, it would be good to pay it off when the interest rates become greater than their return on equity.

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Thank you for the detailed history of CONSOL! I had no idea where the name came from or that the PAMC has been operational since the 1970's. You get a lot right about the company. I appreciate that you covered CONSOL's customer mix (mostly export and industrial).

I would also add a few relevant pieces of information to help understand the company's strengths: their coal has a high calorific value and relatively low sulfur (by Northern Appalachian coal standards), and they are low on the cost curve.

I second your suggestion to read The Coal Trader! He covered CONSOL in this article: https://thecoaltrader.substack.com/p/consol-energy-inc-ceix.

A nitpick -- the Itmann mines does not have "an expected annual production rate of about 166 thousand tons." It's probably 900,000 tons per year. The mine is currently ramping up; you might have gotten that figure by annualizing either Q4 or Q1 production.

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Jun 25, 2023Liked by Six Bravo

Thank you,very interesting.it would be nice to read in a recessin scenario what would happen to consol

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