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If coal rises one US dollar our gross annual profit must rise by $16m or maybe $10m after taxes. If coal has gone from $110 to $150 surely this means our profit would increase by $640m gross or $400m net. Obviously this assumes the price of coal stays where it is for a year, but stranger things have happened.

Everything seems to be coming together here, I honestly think that we will get a couple of 10% rises this coming week. It can’t be long until there are some broker upgrades as it can’t be rocket science to work out roughly what the turnover will be, and assuming costs are stable the prospects look better with every passing day.

Article in tomorrow’s telegraph. Record high gas prices risk triggering a resurgence of dirty coal, oil and diesel power plants around the world as manufacturers and suppliers race to slash their costs, experts have warned. The price of natural gas is soaring owing to a supply crunch after fields were shut down for maintenance, key sites went offline during the Covid crisis and producers slashed investment. Analysts fear it will reverse a global shift to gas that is aimed at cutting carbon emissions. Many countries have been shutting coal and oil-fired power stations in favour of less polluting gas-fired equivalents, but high prices risk damaging that trend as dirtier fuels become cheaper by comparison.Record high gas prices risk triggering a resurgence of dirty coal, oil and diesel power plants around the world as manufacturers and suppliers race to slash their costs, experts have warned. The price of natural gas is soaring owing to a supply crunch after fields were shut down for maintenance, key sites went offline during the Covid crisis and producers slashed investment. Analysts fear it will reverse a global shift to gas that is aimed at cutting carbon emissions. Many countries have been shutting coal and oil-fired power stations in favour of less polluting gas-fired equivalents, but high prices risk damaging that trend as dirtier fuels become cheaper by comparison. The UK has only a few coal-fired power stations left as it tries to phase out the fuel by 2024 to cut carbon emissions, and no remaining oil-fired generation.  High carbon charges on coal in Europe have been part of the reason for the gas price increase, pushing up demand for gas. Experts expect gas supplies to be tight until 2024 when new supplies are expected to come online. Natural gas prices in the UK have this week hit 134p per therm, compared to less than 40p in August last year. Energy bills are likely to go up again next year if prices remain elevated, with the price cap on household energy bills tagged to wholesale costs. The price cap will already be increased from October by £139 due to high wholesale costs. High gas prices also mean more expensive electricity as more than 30pc of UK power is generated from gas. 

I was going to post the gist of that article, but you beat me to it. However it only rates Volex as a hold, not as a buy. The same article mentions DSCV which I also hold. Their shares are more expensive but I am expecting a good day there today and over the next few weeks.

No discount on placing price then. Happy with that.

Got to admit I am pretty excited as to what the next few days and weeks will bring. We should be a £1 billion company next week but this is a share to keep.

Suppose we will have to see what price the privileged few get in the morning but I will be surprised if it is at much of a discount as this looks like a very good RNS to me. There is a positive trading update in there confirming current trends are continuing with a record order book.
I am confident that this will reach 1200p soon.

Why does it seem ramped up Tjay? 1.33 million tonnes of production a month. At $110 it made $35m in June now coal at $145 tonne. I make the costs inc taxes $86 per tonne at $110. At $145 coal taxes would be higher so cost per tonne produced 86 plus 40% of 35 ( the difference between 110 and 145) =14 so running at $45 times 1.33 million or $60 a month it comes to £43m sterling profit Per month at current prices.
Do your own sums and see if you get to a different answer.

It’s like before the internet, there was loads of money in flogging porn mags and fags but not many wanted to earn their money that way. Now it’s coal. Like I said the other day, where there’s muck there’s brass.

Puts us at a current P/E if exactly 1

helu0104, I did some calculations the other day which I posted that indicated we could be making $80m a month at $145 tonne coal price. They ignored taxes. I have done some more calculations including taxes and I reckon at current prices we are making $50m a month after tax or £36m that is £430m on an annualised basis at current prices.
I will post my workings later if I get time.

Lucky, you are definitely not the only one who has averaged up here, I have but I was also lucky to get some at 243p about 7 trading days ago. Also it is nerve wracking to buy into a share that has already doubled but if you look back over a year the best performing shares will have gone up 8 or 10 fold so I am hoping this will double again ( at least once) from here.

At all time high.

Not far off at all now and plenty more to come I believe.

Sorry, weird that. My post had gone, now it’s come back.

My earlier post got deleted, ( I know not why)
I am wondering if we make £300m this year and possibly similar next year and beyond and the dividend comes to £100m a year, what happens to the spare £200m?
If it’s wisely invested by the management into similar productive assets, might we not become a growth stock?

So, if we make £300m and distribute £100m as a dividend, what will the management do with the rest? If it’s wisely invested in other productive assets this could actually turn out to be a growth stock, not just a drawdown old asset.

And it’s equivalent to 0.7p on our share price. It’s probably worth more than that in reality if it’s fallen against an asset priced in dollars.

Approximately £150m in the bank at year end according to headline from the results too.

63*2 =126, 30%of 126 is38 , 38% of 250 is 95 so if everything assumed is correct the dividend would be 95p based on a share price of 250p or a yield of 38%. Is this possible or too good to be true?