IMHO-A dollar to be?
The stock is "greatly undervalued," reckons the company>
Its enterprise value, excluding net cash and treasury shares, as of 23 February 2022 of US$242 million.
Its market capitalisation, excluding treasury shares, as of 23 February 2022 was over US$429 million.
"Our shares are undervalued given the VALMIN JORC valuation of the Group’s coal reserves of US$726 million as at 31 August 2021, our net profit from operations of US$179.1 million in the year and US$191 million cash as at 31 December 2021."
Geo Energy is a highly leveraged play on coal price.
Every US$1 increase in the annual selling price per tonne translates into a whopping US$12 million extra revenue (Geo Energy's approved full-year production quota of 12 million tonnes) with a very high profit margin.
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