Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Coming?
Looks like in a death spiral and I say that as a holder. Always was a punt for me but sadly I should have cut my losses. Will x my fingers for a rebound of sorts.
RPG
",i buy shares as an investment , not to trade ."
Nobody is going to trade this with a 50% spread. I also don't see that there is an investment case here. Sorry. I hope it works out for you but I just can't see BEN surviving the coal price returning to normality and burden of very expensive debt.
Avani, who has signed a 400k tonne take-off agreement with Ben’s Creek is one of the main metallurgical coal importers of India.
Leading Indian steel producers, including JSW Steel Ltd (JSTL.NS) and Tata Steel Ltd (TISC.NS) are expected to invest billions in a record capacity increase to benefit from rising domestic demand in one of the world’s fastest growing economies.
A spurt in economic activity and a revamp of broader infrastructure have drawn steel makers from around the world to India, where demand is rising. In Europe and the United States, it is falling. Analysts and company data showed major mills were planning to increase capacity by at least 22 million metric tons in the fiscal year beginning April 2024.
Jindal Steel and Power (JNSP.NS) is expected to add 6 million metric tons to existing capacity of around 9.6 million metric tons and Tata Steel said it was adding 5 million tons to its capacity of 21 million tons.
JSW Steel, India’s largest steel maker, has said in results reports it aims to increase capacity to 38.5 million tons by 2024/25, up from 27.5 million tons domestic capacity now.
None of the companies has said how much it will be spending on capacity, although analysts, who said the expansion was unprecedented, predicted it would be billions.
We expect JSW Steel will spend $2-$2.2 billion a year towards brownfield expansions, scaling up its iron mining capacities in Odisha, raw material efficiency projects and downstream projects,” Hui Ting Sim, an assistant vice president, Moody’s Ratings in Singapore, said referring to the eastern Indian state.
Together with Japan’s JFE Steel, JSW Steel said in February it would invest 55 billion rupees ($662.85 million) in an Indian joint venture to produce grain-oriented electrical steel, used in manufacturing transformers.
Tata Steel meanwhile, is expected to spend between $1.21-$1.51 billion in 2024/25, Lakshmanan R, head of South & Southeast Asia corporates at CreditSights in Singapore, said.
Anshuman Bharati, an analyst at S&P Global Ratings in Singapore, meanwhile, expected India’s steel consumption would grow between 8% to 10% in 2024/25. During April-January, India’s steel consumption rose by 14.5% to a six-year high of 112.5 million metric tons.
Source: Reuters
JohnHenry, absolutely agree with you. BEN will be wound up, mine and plant will pass to Avani. Avani will mothball it until such time as Met B prices increase to a point that paying a contractor (eg MHW) to mine some coal for them is cheaper than market price.
Avani see this as a long term hedge against coal price movements, and it's not really costing them anything as they get the coal in return for the debt funding which they know will never be rapid. Avani will get the coal and the mine, but they have no interest in acquiring BEN the company.
Unless MetB prices pick up dramatically which is unlikely given the short term outlook for steel.
Mine will be mothballed.
But at this price they are so cheap to buy
buy shares as an investment
Added at this price. Rude not to. Can see some good movement this year.
- disagree, will not fall much £ wise ...
Share price 15% down ....2.5p
Adam surely deserves another bonus
Don’t have sufficient data on this one.
So they are managing debt levels at 16% interest rates out of future revenues but there is a stock conversion clause? Anyone care to enlighten me what happens if they default or can’t pay the loan back does it convert at discount to the SP at the time?
Thanks
Theres no investment case here. Ben is racking up debt to survive while MetB prices remain under their breakeven cost.
How is it possible to continuing operating while your losing $10 per/ton
Aussie met price has finally come down. Shame they were the standouts..
"Australian HCC metallurgical coal quotations plunged to a 6-month low, below 275 USD/t, following limited demand and growing supply. Unfavorable conditions and downward trend in the Indian steel market persist, negatively affecting coal demand. Additional pressure is exerted by Asian consumers searching for alternative supplies. Low volume of bids for May deliveries implies further price reduction."
https://thecoalhub.com/world-coal-market-brief-overview-116.html
RPG, do you not question the validity of you investment.
,i buy shares as an investment , not to trade .
I hope that works out for you, but I fear it won't.
Avani don't want the company, it's loss making and valueless. They want the assets, and they're going to get them. Shareholders will be left with nothing IMO.
What's your motivation RPG? Trying to ramp the price up a bit so you can exit?
I know things aren’t going well but at this price they are so cheap to buy, Avani throwing money at it and invested at 18p….DYOR
Looking forward to a new start for bens creek with new management and professional at that too. Avani in place, Adam all but in body, out and well just a couple of stragglers to go.... Onwards and upwards. Avani would have taken it over if that's what they wanted so they are doing things with shareholders in mind. Thankfully! Added at this price. Rude not to. Can see some good movement this year.
$195 ouch
The information is within the RNS's . Investors should read this BB with an eye on contributors motivation.
Rpg, why do you want to hide the truth from investors.
Of course you are.
Neither, interested observer. I bought soon after IPO and sold out (way too early) for a decent profit at around 40p.
B cubed are you a share holder or a shorter?
Why would Avani buy more shares in a loss making coal miner?
They don't want the company.
They will get their 400,000te of coal.
Then BEN will default on the loan at which point Avani call it in, sell the equipment they have secured the loan upon and there's nothing left for shareholders or other creditors. Who knows, perhaps the property is also part of the security in which case Avani just pay a contractor to do some mining as and when coal prices are high.
So explain to us all then in your infinite wisdom, Bigbadbob79, why they don’t do this straight away, right now?
Only takes them not even 1% of total shares to go over the 30% rule where they’d be required to make a bid for the company.
They furthermore would also risk the mine going bankrupt, which will result in a liquidator being appointed and thus any influence of the winding up process would be fully mitigated.
Avani has had plenty of opportunity to take this over if they wanted. And Avani can also buy coal anywhere else it would like. They’re coal brokers, not miners. They clearly see a way forward which stimulates them to put money up as working capital and providing financial support.
The whole take-over story is wearing very thin, but people keep going on about it. If Avani wanted to, it would’ve happened already. Long before a new CEO was announced. They want rid of the management, this mine can produce and can be profitable under the correct management, everything is already in place, the miners are there, the equipment is there, the rail track is there, the wash plant is there, the off-takes are there. Just need trains… and the trains is where the previous management failed this company so massively. New CEO has got to get trains and get rid of the excess weight in the board of the company and abolish the bonus structure that was completely abused by previous management.