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Geo Energy to be driven by ‘exponential profit growth’

Jude Chan
Jude Chan11/3/2016 12:19 PM GMT+08  • 2 min read
Geo Energy to be driven by ‘exponential profit growth’
SINGAPORE (Nov 3): NRA Capital is keeping its ‘overweight’ rating on Geo Energy Resources with a fair value estimate of 31 cents, despite its share price having almost doubled since the research house initiated coverage.
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SINGAPORE (Nov 3): NRA Capital is keeping its ‘overweight’ rating on Geo Energy Resources with a fair value estimate of 31 cents, despite its share price having almost doubled since the research house initiated coverage.

“The turnaround in 2Q and high volume growth in 3Q has substantially reduced risks associated with its borrowings,” says NRA analyst Liu Jinshu in a Wednesday report. “Sustained coal price growth suggests that Geo Energy will continue to outperform in 3Q and 4Q 2016.”

Geo Energy on Oct 31 entered into an exclusive agreement to acquire the output from close to one-third of an adjacent 773.1-hectare coal mine, AJE Mine. According to Liu, AJE Mine has an estimated 5 million tonnes of coal reserves to be mined out in 2017.

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