Geo Energy Resources

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#41
Iron and coal has been on a run 1H this year. Was vested in Fortress Minerals (iron) for awhile, made some money and left. 

Currently vested in Golden Energy. These are just short term punts because I always felt this type of industry driven by the vagaries of supply and demand and are narrowly focus on a single type of asset/product.
You can count on the greed of man for the next recession to happen.
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#42
Agree with the above.

If you have been following this or similar stocks closely for the past couple of years, it would be apparent to you why the p/e ratio is so low. Being dependent on very volatile market forces for the selling price of your product means this year's profit could be $100 but next year may be -$100. There is no floor to the price of coal.

Other reasons for its low p/e may include the market's dislike for old energy, and this is not likely to fade away, even though old energy -- including coal use in Asia Pacific and North Asia -- may still have very long lives.

I wouldn't treat this as a long-term investment unless you believe coal can remain at present or higher levels for the next 5-10 years.
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#43
Results appear super solid for the short term punters. Operating profit up 4x for 1H
https://links.sgx.com/FileOpen/Geo_1H202...eID=678196

More amazing is that cash position has exceeded US$110mn as of announcement (10 Aug) while as of results it was only US$84mn, indicating US$26mn cash profits in less than 1.5months. As coal prices are higher as of 10 Aug (US$69.53) compared to July's US$58.34, quite likely 3Q will see total cash profits higher than US$50mn. Meaning, 3Q's profits might be equal to or even stronger than 1H's.

A key question: Will Geo continue to be a good punt, if so for how long? The company is looking to diversify away from coal - if the cashpile is deployed for lower returns project, this could be a problem.
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#44
@wonghw12:
Coal prices nearing US$80 / tonne. Geo Energy & Golden Energy will see coal profits at unprecedented levels.
The current demand is very high from China and regional countries. Longer-term coal is facing an existential crisis as climate change policies of governments and ESG concerns lead to a drying up of funds for investing in coal mine supply.
Thus, coal prices are expected to rise even further in the next few years.
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#45
https://links.sgx.com/FileOpen/Geo%20Med...eID=683245

Company is redeeming its final tranche of bonds and reveals post redemption they will have 60 mil of cash. In a span of 3 months, the group cash holdings has grown by 36 million and this included paying off their prepayment to Macquarie.

Its quite a big turn of fortunes and probably something to keep watch if Indonesian coal prices will continue at this elevated levels
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