Golden Energy and Resources

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Golden Energy and Resources Limited was formed through the completion of the Reverse Takeover of SGX Mainboard-listed United Fiber System Limited in 2015.

The Group is principally engaged in the exploration, mining, and marketing of thermal coal sourced from its coal mining concession areas, covering an aggregate of approximately 38,165 hectares in South Kalimantan, Central Kalimantan and Jambi (a province in Sumatra), Indonesia.

GEAR’s coal business, which is held by the PT Golden Energy Mines Tbk ("GEMS") Group, is valued at US$3.1 billion in an independent business valuation report by Jones Lang LaSalle Corporate Appraisal and Advisory Limited. GEAR holds a 66.9998% equity interest in GEMS, which is listed on the Jakarta Stock Exchange.

Backed by the Sinar Mas Group, one of Indonesia’s largest conglomerates, GEAR collectively owns the rights to mine more than 2.0 billion tonnes of thermal coal resources, with coal reserves of more than 700 million tonnes, as at 31 August 2016.

GEAR has reserves of primarily thermal coal with an average calorific value range of between 3,900 kcal/kg (arb) to 6,600 kcal/kg (arb).

Aside from coal mining and trading, GEAR is also engaged in the forestry business,owning forestry concession rights of 265,095 hectares in four regents located in South Kalimantan.

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182,980,298 shares were allotted and issued  @ S$0.67 each on 9 December 2016 for placements.

Some of the placees (Number of Placement Shares) : 
- Ascend Global Investment Fund SPC – Asian Distressed Fund SP (77,064,300 shares) 
- Argyle Street Management Holdings Limited (37,937,300 shares) 
- Trafigura Pte Ltd (10,597,000 shares) 

Last transacted price on 15 December 2016 : S$0.44.

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The Board of Directors of Golden Energy and Resources Limited ("GEAR") has noted considerable fluctuations on the Group's share price since its listing on 12 December 2016.

The Group would like to assure its shareholders and the investing public that as at to date, the Board is not aware of any news or circumstances that may have resulted in such movement in the Company's share price.

In addition, the Board reiterates the following:
1. GEAR is a low cost mining producer due to its superior logistics and supply chain, and continues to have a strong operating track record;
2. Global coal prices have surged broadly since June 2016 and GEAR's business is poised to benefit from the growth of Indonesia’s thermal coal mining industry;
3. Indonesian President Joko Widodo’s 35GW program to provide additional power capacity will drive further domestic demand for coal;
4. The Group has large reserves of coal to support production growth;
5. GEAR is poised to achieve 7.5 million tonnes for its BIB concession area in 2016, which will be further increased to 12 million tonnes in 2017, subject to the Indonesian Government’s approval;
6. GEAR has a strong balance sheet, with low gearing; and
7. The Group has in place an experienced and committed management team to drive growth.

[TTTI]

Question on GEAR that I am hoping someone here can enlighten me on:

In their financials, EPS is presented based on 5,373,548,000 shares
But their NAV is calculated based on 2,353,100,000 shares.

The total number of issued shares is 2,353,100,000.

The reason for the 5,373,548,000 shares number is given as:

" The weighted average number of ordinary shares is calculated based on:
(a) the number of ordinary shares outstanding from the beginning of the prior period, up to the completion of the RTO ("RTO Completion Date") is computed based on the weighted average number of ordinary shares of the GEMS Group outstanding before the RTO Completion Date multipled by the exchange ratio established in the share purchase agreement of the RTO; and
(b) the number of ordinary shares outstanding from the RTO Completion Date up to 31 March is the actual number of ordinary shares of the Company outstanding."

What does that even mean???
The english is certainly bad.
And isn't it misleading to use 2 different figures for shares outstanding?

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NAV shows equity at a snapshot of time, so NAV per share is calculated based on the number of shares outstanding at that specific time. There were 2,353,100,000 shares as at 31/03/2017.

Income is earned over a period of time, so EPS is calculated based on the weighted average number of outstanding shares over that period of time.

[TTTI]

NAV shows equity at a snapshot of time, so NAV per share is calculated based on the number of shares outstanding at that specific time. There were 2,353,100,000 shares as at 31/03/2017.

Income is earned over a period of time, so EPS is calculated based on the weighted average number of outstanding shares over that period of time.

Thank you for your reply.
yes, all true and correct.
But I'm asking specifically for GEAR. 
GEAR's outstanding shares issued over Q1 is 2,353,100,000shares.
So it's not simply because the shares outstanding kept changing and the weighted average is  5,373,548,000 shares
The RTO was completed way before Q1 too.

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GOLDEN ENERGY AND RESOURCES: Ramps up production, selling prices firm up

Written by Leong Chan Teik
Published: 23 May 2019

Golden Energy and Resources (GEAR) reported a 73% y-o-y fall in 1Q19 earnings attributable to shareholders -- a direct consequence of a fall in the average selling price of thermal coal.

GEAR's 1Q19 earnings came in at US$7.2 million compared to US$26.8 million a year ago.

Blame it on the average selling price (ASP) of its coal: US$34.68 per tonne versus US$47.34 per tonne, respectively.

The ASP decline reflects a general downtrend in the market since 2H18.

In addition, specific to GEAR, a higher proportion of its coal produced in 1Q19 came from the BIB mine (lower calorific value) compared to its KIM mine (higher calorific value).

GEAR's profitability is affected also by the cash cost of production, which was, luckily, lower in 1Q19: U$23.29 per tonne versus US$25.56 per tonne.

At 4.2, the strip ratio in 1Q19 was similar to 1Q18, so it didn't figure in the lower cost.

Instead, GEAR's head of investments, Mark Zhou, said the lower cost was due to:
* A standing agreement to "share the pain and the gain" between GEAR and its mining contractors -- ie, because coal prices have declined, the contractors charge a lower rate for their services.
* From this year, the fee basis for coal haulage has been amended to per tonne per km instead of an hourly basis.

Mr Zhou guided for the FY19 average cash cost to be about US$25/tonne (down 8.8 % y-o-y).

What GEAR also has going for it this year is its ability to ramp up production.

Unlike most of its Indonesian peers, GEAR has been delivering rising production volumes, which help offset lower ASPs and keep the company profitable.

In 1Q19, GEAR produced 7.1 million tonnes of coal, up 53% y-o-y.

GEAR, which produced 22.6 million tonnes in 2018, has targeted to produce 25 million tonnes this year.

More details in https://nextinsight.net/story-archive-ma...firming-up

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Increase in Shareholding in Stanmore Coal Limited

Golden Energy and Resources Limited announced that its subsidiary, Golden Investments (Australia) Pte. Ltd. (“Golden Investments”), had on 19 August 2019 purchased 6.60 million shares (the “Specified Shares”) in the capital of Stanmore Coal Limited (“Stanmore Coal”), a company listed on the Australian Securities Exchange (“ASX”), in an off-market block transaction. The Specified Shares represent approximately 2.58 per cent. of the total number of shares in the capital of Stanmore Coal.

The aggregate consideration for the Transaction (the “Consideration”) is A$9.70 million and was arrived at on a willing buyer willing seller basis. The Consideration will be satisfied in cash and funded by GEAR’s internal resources. The unaudited net asset value and net tangible asset value of the Specified Shares is approximately A$2.33 million and A$(0.24) million respectively as at 31 December 2018, and the market value of the Specified Shares is pproximately A$9.27 million as at 16 August 2019 (being the market day preceding the date of purchase of the Specified Shares).

As a result of the Transaction, Golden Investments’ aggregate shareholding in Stanmore Coal has increased from approximately 25.85 per cent. to approximately 28.42 per cent.

[LionFlyer]

topline up 36% to US$806.7 million, bottom line up 129% to US$80.2 million.

EPS@ 1.24 cents from 0.7 cents. No dividend declared for 1H.

https://links.sgx.com/FileOpen/20210813%...eID=678892

https://links.sgx.com/FileOpen/20210813%...eID=678893

[Ben]

https://www.bloomberg.com/news/articles/...-all-costs

China’s central government officials ordered the country’s top state-owned energy companies -- from coal to electricity and oil -- to secure supplies for this winter at all costs

I think this is a very strong statement. And with China not on good terms with Australia, they will have to buy more from other countries, such as Russia and Indonesia.

[LionFlyer]

Prices are going to hit 300 USD dollars per ton soon. That's just crazy.