Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
Its funny that we all take £1 as the next target price because its the next nice round number. Now look at the last two days increase in MET coal +£5 and +$10, multiply by annual production of 2m t adds an extra $30m to BEN's net profit. Put that on a PE of 10x Is an increase in the value of BEN by $300m, divide by 352m shares adds 64p to the share price. But as usual we only go up 2.5p. I conclude that BEN has just got cheaper and cheaper over the last month. The coal price has acually risen $135 pt. So what is the right price for BEN now?
I'm sure we are going to see new highs every few days now the story is getting out there.
Does anyone know where all these little trades are coming from, is there a Robin Hood type outfit that can buy in very small clips?
Looks like MBU borrowed some money from Blue Star and gave them a charge on their assets in error which included the holding in BEN. Technically they could not pledge that because it was locked in until October so they have canceled it.
A non event.
He was talking about 1m tonnes pa but with all the recent developments this must be at least 2m tonnes pa now. In his Sunday Roast he said analysts expected MET Coal to be $180 pt at the end of last year and BEN was very profitable at that level. Now at $450pt they should be making $280pt now and will be valued on their forward production. This gives us $560m annual profit, on a pe of 10x that values BEN at $5.6b or $16 a share. That is where this Company can go by the end of the year imo. So it could be, or should be a 16 bagger unless of course AW acquires more coal, more wash plants etc
BEN has delivered big time for shareholders and is a huge beneficiary of the rise in MET Coal but so little of this massive gain is not yet in the share price. I'm working on what I expect the annual run rate of production will be at the end of this year, 2m tonnes. That is quite punchy I admit but everything AW has promised has actually come through bigger, faster and better.
https://www.argusmedia.com/metals-platform/price/assessment/metallurgical-coal-high-vol-b-fob-hampton-roads-PA00128862100
Anyway doing a quick calculation of yesterday's move up in the MET Coal price +$15, x 2m tonnes, gives us an extra $30m straight to the bottom line, put that on a PE of 10x which is below the sector, adds another $300m to the value of BEN, divide by 353.6m shares = an additional $0.84.8 which in £' is another 64.2p on the share price. The shares have done well and I'm really pleased with my investment but there is a massive disconnect now and I am expecting a very big uplift in our shares soon. DYOR
trying to drum up some negatives on a company that has had a good rise, it's par for the course. Why would anyone go to so much trouble to warn us off if they had not gone short. AW has invited us all to go and see the operation on the Sunday Roast interview. Or see it on their website https://benscreek.com/production.html
This rise alone is worth £1.07 a share to BEN based on a target of 2m tonnes production by the end of this year. This share has performed ok but is actually getting cheaper and cheaper with the move in MET Coal prices.