Geo Energy Resources

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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.
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.
Results appear super solid for the short term punters. Operating profit up 4x for 1H

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.
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.

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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