Excerpts from KGI report

GEO ENERGY (GERL SP): All fired up


BUY Entry – 0.21 Target – 0.24 Stop Loss – 0.18

• GERL is one of Indonesia’s leading coal producers. The company has four mining concessions located in South and East Kalimantan. It is actively operating two mines and has recommenced mining operations at another mine, while planning to start exploration at another mine site. 


• With the improvement of coal prices in 2021, the company is on track for a production of at least 10-11mn tonnes in 2021.

• For 1Q2021, the company recorded its highest quarterly revenue of US$115mn on the back of higher average selling prices of US$41.84 per tonne for ICI4 (Indonesian Coal Index Price for 4,200 GAR coal), up from US$31.97 in 4Q2020 and US$34.44 in 1Q2020.

• The last time coal prices were this high, GEO Energy’s share price traded at between 22 and 35 Sing cents, compared to its current share price of 21.5 Sing cents.

• As a result of the stronger performance, the group now has a net cash position of US$23mn as at 31 March 2021.

• On the industry outlook, this cycle is panning out differently but in a good way for coal miners’ balance sheets.

Whereas previous cycles would lead to an increase in investments when coal prices were high, the shift towards renewables and cleaner forms of energy has instead curtailed current investment plans.

Financing has also become more difficult for new coal mines.

However, even as the world moves away from coal, demand is expected to remain strong through the 2030s, and without new coal mines, prices are likely to stay high. 

Share Prices

Counter NameLastChange
AEM Holdings3.910-0.060
Avi-Tech Electronics0.400-0.005
BH Global0.295-
China Sunsine0.5100.005
Food Empire0.840-0.010
Fortress Minerals0.620-0.010
Golden Energy0.385-0.005
GSS Energy0.0700.001
ISDN Holdings0.765-0.015
IX Biopharma0.230-
KSH Holdings0.365-
Leader Env0.085-0.001
Medtecs Intl0.8050.005
Moya Asia0.0710.002
Nordic Group0.315-
Oxley Holdings0.2300.005
REX International0.210-
Southern Alliance Mining0.990-0.010
Sri Trang Agro1.570-
Straco Corp.0.5200.005
Sunpower Group0.670-0.010
The Trendlines0.1020.002
UG Healthcare0.565-
Uni-Asia Group1.0000.030
Wilmar Intl4.350-0.030
Yangzijiang Shipbldg1.370-0.010
Yinda Infocomm0.230-

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 1045 guests and no members online