GEAR guides for ‘significant improvement’ in 2H21 results

Anthracite, a type of coal. Credit: Joey Harris on UnsplashAnthracite, a type of coal. Credit: Joey Harris on Unsplash

Golden Energy and Resources (GEAR) guided Thursday it expected to report a “significant improvement” on-year in revenue and earnings for the second half and full year 2021. 

“This is primarily due to the higher average selling prices arising from an increase in coal prices, as reflected in the Indonesian Coal Index 4 (ICI4),” GEAR said in a filing to SGX. 

The results are expected to be released on or around 18 February, the company said.

In addition to mining for energy coal in Indonesia via PT Golden Energy Mines Tbk (GEMS), GEAR also engages in exploration, mining and marketing of metallurgical coal in Australia via subsidiary Stanmore Coal, as well as mining for gold via a 50:50 joint venture with EMR Capital in Ravenswood Gold Group, GEAR’s 2020 annual report said. GEAR added it has renewable energy investments Asia.

In December, GEAR said it would acquire the 20.33 percent of Golden Investments (Australia), or GIAPL, it doesn’t already own; GIAPL owns around 75.33 percent of Stanmore Resources. Before the deal, GEAR had a 60 percent effective interest in Stanmore.

GEAR’s acquisition of the remainder of GIAPL followed a move in November to acquire, via its subsidiary Stanmore Resources, all of Australian mining giant BHP’s 80 percent interest in BHP Mitsui Coal (BMC) for as much as US$1.35 billion.

In a filing to ASX at the time, Stanmore said the deal was transformational, creating a leading global metallurgical coal producer with high quality assets in the Bowen Basin.

In its 2020 annual report, GEAR noted it had seen an increase in revenue contribution from Asian markets, such as the Philippines, and from new markets including Japan and Europe due to Stanmore’s operations. However, Stanmore specialises in metallurgical coal, not coal for energy.