Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
The last person to sell shares will be the Company's biggest shareholder. He has actually increased his stake over the last 11 months. But if someone wants to bid for BEN they can make a deal with him which would have to be over £1 imo.
There are a lot of crazy investors here. This news is excellent and BEN can now quickly build production to a million tons per annum and deliver profits in excess of the market cap. This move is so wrong, I've bought a bit more today.
Also the yield will be about 30% at this price.
That is 1m tons per annum, at $277.5pt = $277,500,000 sales with about $175m profits. If MET Coal does move up again it goes straight to the bottom line. I expect a move in coal to over $300 over the next couple of months and BEN to follow it up.
BEN is still a baby, not even a year old yet. Great business IMO.
It was a shock when we fell from 100p to 31p but MET Coal fell from $460 to $240, nobody expected that. But MET Coal is picking up again now and has established a proper uptrend. BEN should be 45p ish imo but if MET Coal price improves over the next few months we will see £1 again by the end of the year. I'm buying again now it is too cheap.
This little company is in the right space, electric vehicle drives and EV batteries. They have a very impressive new CEO,
https://newsnreleases.com/2022/05/16/peter-tierney-appointed-ceo-of-dg-innovate-plc/.
They already have a bit of traction with Meritor and have received some grant funding. With brokers forecasting £27m profits in 2025 its worth a punt imo.
to increase production to about 1.5m tonnes of washed coal when he is ready. So far he has only mentioned 1m t pa but clearly he is getting more ambitious. Truly a great growth story here.
A very good update and explanation of our asset. As AW says "this is a world-class asset" and "the life of mine is easily 17 years and the size of the asset is only going to grow with further MM updates" "he expects to mine for 40 to 50 years at 1m tons of clean coal per year". I getting more confident that one of the majors will buy us for something over £2 soon.
Key points
-- Results of the reserve base evaluation identifies that the Bens Creek properties contain an estimated in-place reserve base of approximately 92.7 million tons (all tons reported on a dry basis prior to the application of mine recovery and wash recovery).
Ben's Creek is now profitable on a monthly run rate and will build and build cash flow and profits from here. That is an amazing achievement in six months as a listed Company. I'm just raising a bit of cash to buy more, this must be THE best investment on AIM.
DD I think your numbers are a bit conservative but even on your figures we are looking at £5.50 a share. Interesting you mention the 'big boys', this Company will be on the radar of all the international miners interested in MET Coal.
That will mean selling a few other positions but I don't have any other stock that can deliver the certainty of huge cash flow, profits and dividends that BEN can. Even based on the first dividend of 10p it yields over 11% but that is bound to double, triple and quadruple over the next couple of years.
So far we have only seen the tip of the iceberg. Not just the trains delivering huge amounts of coal, upgrades in the resource from Marshall Miller, further off-take agreements, the commencement of underground mining of HighVol A, another HWM etc etc
But what about another deal to bring in more coalfields on a royalty basis, the potential is unlimited. Nobody is considering a bid, Anglo American has recently moved back into the MET Coal space buying Oz deposits. What price for BEN?
I don't think this CEO has really started yet, he has very big ambitions but is underplaying these in his interviews so far.