GEAR - Unearthing Opportunities

Deejay78 OP : GEAR’s recent 1H2020 financial performances.

GEAR delivered a strong 1H2020 performance despite challenging economic conditions and being in the weakest coal price environment since 2015/2016.
• Production and sales volume for 1H2020 were 16.5 million tonnes (up 31.7% YoY) and 17.1 million tonnes (up 27.4% YoY) respectively.
• Strict controls on production cost ensured continued profitability despite low coal prices, with average cash cost at US$22.53 per tonne in 1H2020 (declined 4.4% YoY).
• The Group saw a surge in consolidated net profit to US$35.0 million (up 40.5% YoY), on the back of an 18.6% increase in revenue to US$593.5 million

Deejay78 OP : Golden Energy and Resources posts 18.7% drop in FY2020 earnings after acquisitions

Earnings per share for the full year fell to 0.34 US cent from 0.42 cent in FY2019.
In its results filing, Gear noted that its revenue grew 4.2 per cent to a record US$1.16 billion compared to US$1.12 billion in the year-ago period due to higher contributions from its metallurgical coal segment from the consolidation of Stanmore Coal.
The growth was partially offset by a decrease in revenue from the energy coal and non-coal businesses segments, which fell 4.5 per cent and 20.1 per cent respectively, due to lower coal average selling prices and the absence of consultancy services rendered.
Post the consolidation of Stanmore's results as well as higher barging and trucking expenses which came on the back of higher sales volumes, selling and distribution expenses for FY2020 grew 8.6 per cent to US$201.4 million, from US$185.4 million previously.
Administrative expenses increased 7.1 per cent to US$79.3 million from the year before, due to the consolidation of Stanmore's financial results.
The group also booked a US$4.9 million loss of a joint venture (net of tax) over the period due to its investment in the Ravenswood Gold project.
Gear's cash and cash equivalents stood at US$262.8 million as at Dec 31, 2020.

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