In today’s briefing:
- ITMG – Q1 2023, Decline in Coal Prices And Increasing Costs Weigh on Profits, Yield Sturdy >20%
ITMG – Q1 2023, Decline in Coal Prices And Increasing Costs Weigh on Profits, Yield Sturdy >20%
- Indo Tambangraya Megah (ITMG IJ) suffered a >30% decline in market capitalization owing to the drastic drop in coal prices from 400 USD/ton to 160 USD/ton.
- At a 1.9 bn USD market cap, the company can generate 700 mn USD profit at current coal prices/paying a 5000-6000 Rph dividend equating to a 20-25% yield.
- Also, with 1.0 bn USD of net cash after accounting for the dividend liability (>50% of the market capitalization is cash), there is an excellent margin of safety.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
