Coal -- be it metallurgical or thermal -- has been having its day in the sun with elevated selling prices generating strongly positive returns for miners.

coal hand pic
From Australia, home to many coal miners, two examples:

Coronado Global Resoures, a metallurgical coal play, has reported record 1H2022 revenues (+147% y-o-y) of A$1.98 billion.

The company distributed A$351 million in cash dividends to shareholders in 1H2022 (Jan-June 2022). 

TerraCom, a thermal coal play, reported 
operating EBITDA result of A$224 million for its April-June 2022 quarter, surpassing the previous quarter by 250%. It was also a record for the Company.

EBITDA for the full year ended June 2022 was a record A$488 million.


ASX-listed metallurgical coal miner Stanmore Resources, which is a 64%-subsidiary of Singapore-listed Golden Energy & Resources (GEAR), can be expected to do well also.

This is especially so following the completion of Stanmore’s transformative US$1.35 billion acquisition of an 80% interest in BHP Mitsui Coal on 3 May 2022.

GEAR stock price 

51 c

52-week range

26 – 81.5 c

Market cap

S$1.35 b

PE

7.3

Dividend yield 

--

1-year return

27%

Shares outstanding

2.64 b

Price/Book

1.9 

Source: Yahoo!

Stanmore now owns an additional two high-quality, long-life, cash-generating and well capitalised metallurgical coal assets.

Stanmore is shaping up to be the critical contributor of GEAR's overall results (especially going forward).

With its stock price up 76% in the year-to-date, GEAR last night said it expects to report a "significant" y-o-y improvement in revenue and earnings for 1H2022. It will release results by 14 August 2022.

"This is primarily due to the consolidation of results from BHP Mitsui Coal Pty Ltd, and higher average selling prices arising from an increase in the prices of both metallurgical coal and energy coal."

GEAR owns 62.5% of Indonesian thermal coal miner Golden Energy Mines which is listed on the Jakarta Stock Exchange.

The relative strength of prices of these commodities in 1H2022, as reflected in the S&P Global Platts and Indonesian Coal Index 4 respectively, is shown below: 


Coal index7.22


Metcoal price7.22Source: S&P Global Platts


Comments  

0 #2 Hot 2022-07-28 14:44
GEAR previously had to fund its pro-rata entitlement to buy Stanmore’s shares during an exercise to fund the huge BMC acquisition.

From memory, it was US$300 M.

Hope GEAR can pay nice dividends pretty soon, or else shreholders would be disappointed.
Quote
0 #1 Rayo 2022-07-28 14:19
Gear why cannot give generous dividend like Geo Energy? Cos a chunk profit go to non controlling interest.
Quote

Share Prices

Counter NameLastChange
AEM Holdings3.430-0.010
Avi-Tech Electronics0.265-0.010
Best World2.5300.010
Broadway Ind0.1080.001
China Sunsine0.465-
DISA0.0030.001
Food Empire0.735-
Fortress Minerals0.4000.025
Geo Energy Res0.320-
Golden Energy0.810-0.010
GSS Energy0.047-
InnoTek0.520-
ISDN Holdings0.6050.020
ISOTeam0.090-
IX Biopharma0.120-0.002
Jiutian Chemical0.081-
KSH Holdings0.340-
Leader Env0.0720.010
Medtecs Intl0.148-
Meta Health0.021-0.001
Nordic Group0.470-
Oxley Holdings0.143-0.002
REX International0.2150.005
Riverstone0.655-0.025
Sinostar PEC0.180-
Southern Alliance Mining0.610-0.015
Straco Corp.0.5000.020
Sunpower Group0.3950.020
The Trendlines0.098-
Totm Technologies0.1030.001
UG Healthcare0.176-0.003
Uni-Asia Group0.9050.005
Wilmar Intl3.960-0.070
Yangzijiang Shipbldg1.3000.010

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 2427 guests and no members online