[1] Golden Energy and Resources Limited is 4th largest coal reserve player in Indonesia. It collectively own the right to mine 2.7mil tones of thermal coal resources with coal reserves of more than 1022MT as of 2017.
[2] It's earning has been growing in double digits year on year since 2017, on the back of strong growth in both coal mining and trading divisions.
HIGHLIGHTS:
[1] Debt gearing ~ 53% with insignificant interest expenses.
[2] Company announced interim dividend 0.0139 for last quarter which is equivalent to 5% dividend yield based on last trading price. It announced 0.01 as dividend for first quarter as well. Management has been generous to share growing cash balance with shareholders.
[3] Current valuation is attractive: P/E ~ 7, P/B ~ 1.3
[4] Earning for next quarter is expected to be supported by rising investment into coal and mineral sector by Indonesia government as well as higher export to China.
CHART:
Share price surged upon latest results announcement. Transaction volume was significant ever since. Coming Monday will be expiry of dividend entitlement. Shall buying volume continue, next resistance could be 0.33.
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