Member Info for EdwardSeaton

That's a curiously familiar post.??

The price of coal has halved from a peak, but nothing like halved from the H1 average.

Also, as I said re your Bisichi post, the company has made and retained a spectacular amount of profit and cash in the last 12 months.

At the end of November, post dividend, they had £940m of cash, which wasn't there 12 months ago.

That pile is still growing rapidly, and will exceed market cap by the autumn.

Breakeven for Thungela is sub $50.

The share price should be higher than it was 12 months ago - the company has made, and almost entirely retained, the best part of £50m since last January.

As I recall, in 2021, they made £5.8m, and the average price achieved was $92.

You'll just have to wait until the scales fall from peoples eyes on this one. People don't understand how profitable these companies are at $170.

There's about $100 per t of clear profit.

And coal was exactly the same price as it is now in January 2022.

Indeed. You could basically buy this company for nothing.

I wonder if a long established company has ever had a 'market cap/half year profit' ratio of less than 1 before?

Bisichi is getting mighty close.

It would be funny if the share price went below the dividend. Not far to go...

JulieE - you are quoting the next interim date.

The 2022 final divided comes first, going ex-dividend around the beginning of May.

Well Schwee, have a look at the interims for Thungela plc, and Bisichi plc

Bisichi is over 100 years old, incredibly stable, and made £22m profit in H1. It will make at least that in H2. But its market cap is..... £28m. That is a p/e of about 0.6.

It is crazy that anyone thinks China buying Australian coal again makes any difference.

If some Australian coal again goes to China, de facto, it doesn't go elsewhere. So 'elsewhere' now has to buy more coal from somewhere else.

It has zero impact on global consumption, and zero impact on global production.

These very long established, asset backed, money tree companies are a curiosity.

It is incredibly easy to put together a portfolio of shares in companies that are enormously profitable, cash generative and dividend paying, but that are trading on a P/E of less than 4 (and in some cases sub 1).

It is frustrating in a way, but also an incredible buying opportunity for as long as it continues. So on balance, a good thing if you are a regular investor.

Correction, $174.

This time last year, the price was £174.

This time last year, the price was $174.

I'm certainly not the guru that is tim000, but my understanding is that the balance you are looking for is what they invested during 2022 H1 moving the mining area to a new, more cost efficient and more productive site.

Because of this, mining volume was only a little over half what would otherwise have been extracted, but they have previously said that they expect to make up this shortfall in H2 (such that total 2022 volume is similar to 2021 volume).

Breakeven is not $130 to $150.

It is very far below $100.

Bisichi is profitable above around $60, and has far smaller economies of scale.

Sorry, Beza...

Hi Bezi. Yes, tim000 is knowledgeable without compare (and hugely invested in this). His only reference to the c. £4m of equities they have invested in is that 'they haven't shown any great profits yet'.

There is certainly no suggestion that there has been bad news on those investments. If there had been, they would have had to have made note of them in the interims.

Reading back through his posts, it is reminder that the incredible H1 results were in spite of a massively impaired production volume in H1. The expectation is for that volume to have doubled in H2.

People do say all sorts of ridiculous things, Beza. But if it was true, it would have to have been mentioned and reflected in their accounts. Surely you know this?

Look at the 2021 accounts, or the 2022 H1 accounts. Nothing

I'd love you to show me where these poor financial investments are in their accounts, Beza?

As far as I can see, it is a coal mine and property investment company, and that's it.