RE: With everyone having a31 Dec 2021 11:53
Ben caught my eye once I read the ipo document and subsequent offttake agreement. This in my opinion is a no brainer investment. Couple of points to note:
Coal price sure to keep stable, especially with the infrastructure/green projects planned across the globe, it may even keep rising.
As it stands BEN is on track to generate a minimum 40,000 tons of coal a month. This equates to roughly $8m profit a month, nearly $100m per annum. Another high wall miner coming soon, which will double this capacity and take this to $16m per month/ $200m per annum. Ben is currently valued at £112m, therefore will be making more profit than market cap??? Therefore I see the price making a steady climb to a minimum 400/500m in the next few months.
Further to the above Adam is looking to increase capacity further with other royalty type acquisitions. This will again increase value, but even without these deals BEN is making some serious cash right now.
They have money in the bank from recent CLN, but will have more than enough following first payment in the coming weeks. We have also been informed that that the lender was ACAM GP who took place in the original placing, and wanted more shares, and has no intention of selling them. All other large stakeholders are locked in for 12 months from placing, leaving only roughly 20% free float (70m shares).
They have no debt and own the infrastructure and intend to provide dividends as soon as possible.
My opinion is a strong buy. Also to note, I don’t see weakness in the price, just consolidation, which is a good thing. If it rises to quickly it spooks investors to sell.
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