$天然煤矿集团 (RE4.SG)$ A likely key catalyst of the rise in the p...

A likely key catalyst of the rise in the past 2 weeks is an approximate 20% spike, or about US$10 per tonne, in thermal coal futures for the next 6 months or so.

Thus there will be a significant uplift in Geo Energy's profitability in 4Q2023 -- assuming coal futures stay steady at the US$62++ level or higher, and assuming other factors such as the mining strip ratio stay unchanged.

Another positive for Geo Energy is that on Sept 22, it announced it secured USD220 million term loan facilities to fuel its growth plans and become one of the top players in the Indonesia coal mining industry.

The USD220 million facilities, together with Geo Energy's cash reserves of approximately US$150 million as at end-June 2023, will not only drive its growth plans -- especially the Triaryani project -- but also provide a healthy balance sheet and strong working capital and liquidity.

An EGM is scheduled for 13 Oct where Geo Energy shareholders will vote on the M&A plans.