Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Coal prices have risen out of the pan, futures reaching a high as $190 per tonne. This could be very
damaging to OPG as high prices are likely to persist for some time to come considering the prevailing
global energy shortages. Coal producers stand to benefit. One small producer Bisichi (BISI) producing
some 1 million tonnes in Africa, might see profits reaching as high as its Market Cap. That is assuming
high prices persist for year or more..
The very high futures price of $190 per tonne (currently prevailing), could translate into $100 million additional profit for
BISI, my calculation based on annual production of around 1 million tonnes with the high price ($100 above normal/recent prices) persisting for more than a year. Considering the prevailing global energy shortages, it is in my view possible for the high coal price to persist for some time to come.
Should BISI enjoy a year of coal prices as high as $190 per tonne (current futures price) , which is more than $100 above the normal of around £90 earlier this year, then profits will soar by $100 million for the year. Sounds too good to be true? Well,
in my view, it is possible for a year as good as that good to become true, considering the prevailing global energy shortages.
The price of coal globally has increased hugely in the past few weeks, BISI stands to benefit greatly. Simply just an extra $25 per tonne would bring in adlditional $7.5 million on the estimated 500,000 tonnes being mined in the 2nd half of this year. All that is likely to translate into $7.5 million additional profit. However, I believe the price increase is considerably more than $25 per tonne. On the other hand, perhaps BISI has done forward selling? Whichever way, BISI is heading for a Bonaze time, IMO.
I bought a small stake in PURP last week, I see no need for profits this year or even next year, provided that
PURP keeps on growing and keeps on gaining market share. Profits will follow in time.
Underlying EPS for H1 this year 3p, full year likely to reach 7p (results just out) ,. So PE- ratio not high, but distorted
last year due to Covid-impact. H1 Results are strong, IMO. I managed to buy first thing this morning during unwarranted
dip at 103p.
I consider AMS a safe and sound company, with the added security of loads of cash in the bank.
Based on H1 Results, my guess is 10p EPS this year. With the share price at around 270p, we are
unlikely to see fireworks there for some time. But no hurry when there is safety and the future
looking bright. For a stock with steep rise potential, but perhaps some more risk, I hold and
recently generously topped up, Beximco Pharmaceuticals GDR sharaes (BXP) where I reckon
40%-60% rise over the next twelve months would not be out of the question. Perhaps some of
my fellow-investors here would want to have a look.
But as always, DYOR and/or speak to your financial advisor.
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Up again in Bangladesh today. The GDR price gap here is bund to narrow as it will become increasingly clear to us
that Bangladesh is not a backward and unrelable country where there are no safe and sound well managed
Copanies. In my view the there is a greater prospect of Banglaesh make strides of progress than there for the
UK where labour costs have risien or are rising out of the pan.
Up almost 4% on Dhaksa stock exchange to Take 224, which translate into GBP 190.5p.
Our BXP-GDR shares receive the same Dividends as the BXP-Ordinary shares traded in
Bangladesh, so the extraordinary wide price-gap is in my view bound to narrow over
time.
BXP up 3.8% today on Dhaka stock exchange to Taka 224.10 , which translates into GBP 190.6 pence.
Bangladesh-based investors seem to have become very keen on the shares lately. Good sign, bodes
well for our BXP-GDR shares, which - by the way - are entitles to exactly the same dividends as the
Ordinary shares trraded in Bangladesh. Difference is that the GDR's are not permitted to trade on the
Dhaka stock exchange, nor do they have voting rights - but the same dividends as Dhaka traded
Ordinaryshares...
Looks to me that the extrordnary wide price gap can not last forever - it shouts Opportunity in
my view. I am well invested, intend to hold for the long term, very long term.