Value Hive Podcast Matt Warder: Coal, Precious Metals, and Dinner with Mohnish Pabrai
Feb 28, 2025
In this conversation, Matt Warder, a coal industry expert from Seawolf Research, shares his deep insights on the evolving coal market and why coal stocks remain undervalued. He discusses the implications of metallurgical coal for steel production and the expected uptick in coal output. Additionally, Matt reflects on his memorable dinner with investor Mohnish Pabrai, offering valuable lessons from that experience. His unique journey from aspiring medical student to coal consultant adds a personal touch to this intriguing exploration of commodities.
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Metallurgical Coal's Transition
- Metallurgical coal, used in steelmaking, faces an energy transition similar to the power sector.
- However, the replacement technologies for blast furnaces are not yet developed, creating a potential supply gap.
Boots on the Ground
- Matt Warder has visited coal mines in Alabama and other regions, observing similar operations and culture.
- However, geological conditions and transportation costs vary significantly, impacting cost structures.
Modeling Coal Mines
- Early in his career, Matt Warder modeled every US coal mine, starting with 1250 mines in Central Appalachia alone.
- This experience gave him a deep understanding of the industry and its complexities.