Gracias Nate por la respuesta. La verdad es que solo por el dividendo ya es muy buena inversión. Yo voy a vender un piso que tengo y pondré en RE4 una parte importante. Saludos
Great piece of work and super interesting company. Hats off! Based on what you write, indeed the biggest risk is what management would do with that amount of cash. The Idea to diversify into renewables could be a great mistake, but they probably "have to" mention it to get a ESGish image. Just a couple of questions from my side before I dig deeper. 1) with the third and potentially fourth mines, would they increase their quota? 2) apart from the timely bond repurchase you mentioned, has the management done any shareholder friendly or value-creative action? (I.e. share repurchased, acquisitions in the bottom of the cycle..) . Thanks!
1) I think so yes, I think their quota increase is only for their two currently operating mines. The BEK mine has a 1MT additional yearly production quote, and I guess if they opened STT they'd get an additional quota for that mine. With coal prices so high I think it'd be reasonable for the indonesian government to raise quotas for next year. 2) I haven't looked that far back, but I believe they acquired the SDJ mine a few years ago and it has definitely been accretive for shareholders. Anyways, it's easy to understate how much value they have created through the bond repurchase, but they saved 110M USD plus 16M+ USD in yearly interest payments. Their dividend policy is to pay at least a 30% of net income in dividends which I think is fair enough. As for the repurchases I don't believe they'll execute them, management is concerned with share float & liquidity. It's a shame really, share buybacks would create instant value given the ratios they're trading at.
Great piece! Thank you!
Esta acción no se mueve nada. Es un poco raro con lo barata que está no?
Habrá que esperar a los resultados que deberían ser dentro de poco, antes de marzo yo creo.
Si son buenos y ponen más dividendo de lo esperado es posible que suba.
Gracias Nate por la respuesta. La verdad es que solo por el dividendo ya es muy buena inversión. Yo voy a vender un piso que tengo y pondré en RE4 una parte importante. Saludos
u still bullish on Geo Alex?
Yeah, I'll publish an update this weekend, but in general very bullish.
Great piece of work and super interesting company. Hats off! Based on what you write, indeed the biggest risk is what management would do with that amount of cash. The Idea to diversify into renewables could be a great mistake, but they probably "have to" mention it to get a ESGish image. Just a couple of questions from my side before I dig deeper. 1) with the third and potentially fourth mines, would they increase their quota? 2) apart from the timely bond repurchase you mentioned, has the management done any shareholder friendly or value-creative action? (I.e. share repurchased, acquisitions in the bottom of the cycle..) . Thanks!
1) I think so yes, I think their quota increase is only for their two currently operating mines. The BEK mine has a 1MT additional yearly production quote, and I guess if they opened STT they'd get an additional quota for that mine. With coal prices so high I think it'd be reasonable for the indonesian government to raise quotas for next year. 2) I haven't looked that far back, but I believe they acquired the SDJ mine a few years ago and it has definitely been accretive for shareholders. Anyways, it's easy to understate how much value they have created through the bond repurchase, but they saved 110M USD plus 16M+ USD in yearly interest payments. Their dividend policy is to pay at least a 30% of net income in dividends which I think is fair enough. As for the repurchases I don't believe they'll execute them, management is concerned with share float & liquidity. It's a shame really, share buybacks would create instant value given the ratios they're trading at.
Awesome work, Alex! Thanks!!