Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

High Yield Experts

Senior Credit Analyst, Lucror Analytics

Trung Nguyen

Senior Credit Analyst

Credit

In our view, Bayan Resourcesâ€™ FY 2019 results were significantly weaker than expected by both us and the street. Q4/19 also surprisedآ on the downside, particularly in regards toآ cash flows. We note that in January 2020, when the 2023 Notes were issued, management would likely have beenآ aware of the poor quarter. Further, the operating risk profile remains challenging, owing to: [1] logistic issues at the company's key mine; and [2] COVID-19, which resultedآ in the temporary suspension of operations. That said, the financial risk profile remainedآ modest. Liquidity remained, sound with sufficientآ cash to coverآ operating expenses and capex in FY 2020. We did a scenario analysis of an environment in which coal prices continue to decline by c. 10% p.a. until 2022 (the USD Notes mature in 2023). Even in this adverse scenario, leverage at FYE 2022 would remainآ acceptable.

 In our view, Bayan Resourcesâ€™ FY 2019 results were significantly weaker than expected by both us and the street. Q4/19 also surprisedآ on the downside, particularly in regards toآ cash flows. We note that in January 2020, when the 2023 Notes were issued, management would likely have beenآ aware of the poor quarter. Further, the operating risk profile remains challenging, owing to: [1] logistic issues at the company's key mine; and [2] COVID-19, which resultedآ in the temporary suspension of operations. That said, the financial risk profile remainedآ modest. Liquidity remained, sound with sufficientآ cash to coverآ operating expenses and capex in FY 2020.  We did a scenario analysis of an environment in which coal prices continue to decline by c. 10% p.a. until 2022 (the USD Notes mature in 2023). Even in this adverse scenario, leverage at FYE 2022 would remainآ acceptable.

Bayan Resources - Earnings Flash - FY 2019 Results - Lucror Analytics