The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Prospective dividend yield of 6-7% plus share buyback with forward looking PE of 6 - what's not to like? Oh yes sorry forgot - nasty nasty coal
The Group produces and trades coke through its Monckton coke plant. As we have previously reported, coke markets and pricing have been very volatile and this continues to hamper Monckton's activities. Difficulties in the financial and commercial position of some producers and customers are adding to the challenging trading conditions. The Group has always recognised the importance of balancing risk with maximising return on capital employed and is aware of the high levels of working capital already invested at Monckton and in its wider coke trading activities. We remain committed to minimising operational risk wherever possible, by avoiding significant open contractual positions. Against this background, the Board will, in the coming weeks, review whether Monckton can achieve sufficient contractual certainty in current market conditions to justify the level of working capital deployed to support the operation. At the end of May 2014 the coal and coke stocks at Monckton amounted to £17.5m. The Group will also look for opportunities to cut working capital levels in our German associate by reducing trading levels until normal market conditions resume. The Group views its UK coal trading businesses as an important part of the Group and highly synergistic with its coal production activities. Although there will continue to be a key focus on developing production, trading and distribution activities in the UK, the Group does recognise that coal trading poses very intensive working capital demands. Opportunities will be sought to focus trading activities on core streams where the Group is best placed to add value, optimise its return on capital and maximise synergies and profits from its thermal and speciality coal markets. To achieve this focus, we currently envisage reducing bulk trading volumes by around 1.5m tonnes per annum and reducing working capital accordingly. A key focus of the Group will be to protect our market share and margins from the supply of coal into the thermal and speciality markets. Other non-core activities are also under review, including the tyre crumbing operation, the joint venture with MIR Trade in Europe and the Rocpower operation. Notice has already been given to our joint venture partners to seek to wind down the activities of MIR Trade joint venture in an orderly fashion. The Group has recently received early stage interest from a third party in the acquisition of Rocpower's Commonside Lane facility and grid connection. In light of the decision to streamline the Group, the Board is willing to consider a disposal of the Rocpower assets and has written down the value of the assets in the Group balance sheet accordingly. The Board expects this set of initiatives to liberate substantial cash resources, which will be available to enhance returns for shareholders.
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if not, where?
if u can... ....rather than carrying it
And the CEO gets 109,000 shares at nil cost!
sub £6 written all over it...but interesting to see whether strong support in region of £5.50-£6 holds
so has the share price within a week .first a drop with imperial tanker sale and now this drop after so called good results.Im getting ready to sell up , something not stacking up here
have dropped alarmingly...why?
market disagrees
Once again Hargreaves has confounded the doubters with a suberb set of results in difficult circumstances . Profits and dividend up, borrowings down Coal may not be flavour of the month but it still has a role and Hargreaves is by far the dominant player
well...not sure I get the reasoning for sell off...but coal is desperate
Couldn't help but think of some past comments made here when I read this... http://www.businessspectator.com.au/article/2014/5/27/energy-markets/big-banks-see-bleak-future-coal?utm_source=exact
More recently, The Australian reports that the “boss of BHP Billiton Coal, Dean Dalla Valle, has not ruled out divesting coal assets as he warned there was little sign of relief in the short term for the struggling sector.” On top of that, The Wall Street Journal reported just last week that Rio Tinto “put stakes in several Australian thermal-coal mines on the block in sales that could fetch around US$3 billion, people familiar with the matter said.”
Go read the words of their CEO on their approach to thermal coal, which they are talking of getting out of in EVERY country in which they operate. You really don't read these articles I post, do you? I'd say you're the one who tends to introduce noise into the debate, rather than facts. ;)
The fact that BHP, the world's premier coal producer is wanting to pull out ot S.Africa , like Anglo,Randgold and others is much less to do with coal than political and workforce issues. Coal is still the only meaningful show in town for power in South Africa but why work under a corrupt and business unfriendly regime when better options are available. As I have said, BHP is budgeting for increased production over the' next decades'.'Listening too much to the noise of the market can obscure one from the underline realities on the ground..
BHP close to getting rid of South African coal assets: http://www.bdlive.co.za/business/mining/2014/04/02/bhp-billiton-may-be-close-to-an-exit-from-sa-coal Tells you everything when such a company is pulling out, no?
Interesting article - BHP divesting coal assets as they see no improvement any time soon http://www.fool.com.au/2014/04/07/is-a-coal-crash-coming-bhp-billiton-limited-and-rio-tinto-limited-are-selling-coalmines/
Not specifically a coal miner though. Activities include shale in US, coal's greatest enemy... ;)
FT has confused COALFIELD RESOURCES WITH UKCOAL MINING ( linked to a poss buy out by Hargreaves) here in case you don't know is some info ****************************************************************************************************************************** Links Harworth Estates ( Land and property) http://harworthestates.co.uk/ Coalfield Resources ( CRES), we own 25% of above.. http://www.coalfieldresources.com/ UK Coal Mining operations only ( Nothing to do with Coalfield, or Harworth , they just mine coal) http://www.ukcoal.com/ And just to really confuse you PEEL HOLDINGS OWN 1/3 of COALFIELD RESOURCES Coalfield Resources major shareholders are as follows: Number of shares % issued capital GOODWEATHER HOLDINGS LTD* 196,468,940 32.82 & To really confuse you PEE & HARWORTH have collaborated on many Energy projects & Now road raid & warehousing n November 2008, Coalfield Resources, formerly known as UK COAL, and Peel Energy signed an agreement to develop wind farms across Coalfield Resources' extensive land portfolio. Under the agreement, Peel Energy's wind farm development team will lead a programme of phased development through to planning permission. Individual joint ventures between Peel Energy and Coalfield Resources will then construct and operate the wind farms. http://peellogistics.co.Uk/ & to even more confuse you HARWORTH & PEEL STAFF have mixed/ crossed http://harworthestates.co.uk/about-us/the-team/ ********************************************************************************** So its a MOnster mIX up MAsh no wonder 1/3 discount on a rubbishy valuation its worth a small fortune to someone????
So BHP is a failing company now - clearly this is a world scoop you have come up with- what will you announce next?Re.Kellingley - there may be peripheral assets for shrewd preditors to pick up.
Why not credible? Your opinion only. As for Australia, I read financial analysis, not propaganda from failing companies...you're also contradicting yourself, since you quote opinion referring to what will happen over decades to come, yet you say I should not put forth evidence of increasing take up of renewable generation. As for keeping it real, as already noted 8k Australian coal jobs gone and numerous companies struggling and close to collapse with high levels of debt. Do share where you think this miracle turnaround is going to come from, because no trend supports it. And of course we now see UK Coal about to collapse (again) looking for a bailout (again). Do you think Hargreaves will hoover up their assets? It looks like Moulton is expressing interest.
Any suggestion that South Africa can develop any meaningful energy source other than coal sourced in the foreseeable future is simply not credible. Furthermore BHP the Australian mega coal producer stated yesterday that it expects to increase production 'over the next decades'. We really need to keep this debate real rather than slanted with a futuristic slant. Electric cars for example may be the future but not moneymakers yet!
Couldn't help but notice this article re South Africa, which you noted has power outages recently - due to failures in the system of coal supply - bit of analysis re the strong openings for other power generation methods than the harder to implement (let's face it) fossil fuel methods. http://www.bdlive.co.za/opinion/2014/04/02/there-is-light-at-the-end-of-the-renewable-power-tunnel? This is a trend I reckon we could well see a lot of, particularly in developing markets.
I'd like to just take this opportunity to say Beg, I find this debate very useful - investing is a black art as it is, and the more information we can thrash out or dig up is actually very useful to all of us. Figuring out what the trends are beyond the film flam of the companies who want our money is the thing to work on. The world market for coal is in real upset at the moment - who'd every have thought we'd ever see all the collapses and reversions that are happening now, even just two years ago? It's definitely a case with coal of closely scrutinising what is happening globally, in a way we didn't really need to in the past. The security it presented in the past does seem increasingly to be a few thing of the past, its volatility and uncertainty is growing.