Golden Energy & Resources (GEAR) issued a "profit guidance" yesterday (25 July) for its 1H2021 results which will be dominated by its coal business segment.

The Singapore-listed company said it "expects to report a significant improvement in revenue and earnings for 1H2021" as compared to 1H2020.

"This is primarily due to the higher average selling prices arising from an increase in coal prices, as reflected in the Indonesian Coal Index 4 (ICI4)."

ICI4 reflects the  grade of coal produced by GEAR.

jetty8.19Coal is stockpiled and then transferred to barges which transport the coal to mother ships out at sea. Photo: GEAR

The brief announcement comes as no surprise as the ICI4 Index has been trending up strongly, reflecting strong demand from China which has pulled back from importing coal from Australia amid political tension between the two countries.

We had highlighted the profit prospect: 


The chart below shows the big driver of massive profits for GEAR this year after recent years of relatively weak coal prices:

ICI4 July2021

GEAR, whose stock price has risen about 124% year-to-date, is an investment holding company with a 63% stake in Golden Energy Mines (GEMS) listed on the Jakarta Stock Exchange.

You can see the profit rolling in for GEAR already through the 1Q2021 results announced by GEMS.

Revenue was US$381 million on a
 record production of 8.9 million tonnes in 1Q21.

Net profit was a whopping 
US$101 millionAnd GEAR gets 62.5% of that.

For perspective:

 In 1H2020, GEAR reported US$16.5 million in net profit attributable to shareholders.

• For the entire FY2020, GEAR's net profit attributable to shareholders was 
US$8.1 million (FY19: US$9.9 million). 


With GEAR's bonanza profit, the market will be looking to strong dividends with the 1H2021 results, or at least in the final dividend.

In line with its diversification ambition, GEAR can be expected to put aside cash for M&A and to develop its coking coal and gold projects in Australia.  

GEO ENERGY too
Meanwhile, it should surprise no one that another Singapore-listed coal miner, Geo Energy Resources, will also report sterling 1H2021 profits.

For 1Q2021, Geo Energy had announced net profit of US$28.5 million on an average selling price of US$41.84 per tonne.

It sold close to 3 million tonnes of coal.

Assuming the same sales volume and a conservative US$10/tonne increase in the average selling price q-o-q, Geo Energy would be adding an extra US$30 million to its bottomline. 


Share Prices

Counter NameLastChange
AEM Holdings4.560-0.180
Avarga0.265-0.005
Avi-Tech Electronics0.000-
China Sunsine0.465-
Food Empire0.690-0.010
Fortress Minerals0.405-0.015
Geo Energy Res0.365-0.005
Golden Energy0.295-0.005
GSS Energy0.065-
InnoTek0.685-0.010
ISDN Holdings0.645-0.020
ISOTeam0.115-
IX Biopharma0.193-
Jiutian Chemical0.084-0.001
KSH Holdings0.340-0.005
Leader Env0.065-
Medtecs Intl0.295-0.005
Moya Asia0.063-
Nordic Group0.390-0.010
Oxley Holdings0.185-0.001
REX International0.3300.010
Riverstone0.670-0.010
Sinostar PEC0.290-0.005
Southern Alliance Mining0.680-
Sri Trang Agro1.150-0.010
Straco Corp.0.410-
Sunpower Group0.440-0.010
The Trendlines0.1070.002
Totm Technologies0.178-0.002
UG Healthcare0.265-0.005
Uni-Asia Group0.970-0.015
Wilmar Intl4.200-0.070
Yangzijiang Shipbldg1.290-

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 498 guests and no members online