Hi Ekulelekul,As someone who might own some TER shares soon can...

Hi Ekulelekul,
As someone who might own some TER shares soon can you explain to me why its a good stock?

I have just some back of the envelope numbers but what strikes me is:

It made a loss in 2019 when coal prices both thermal and coking was doing very well.
It's providing a dividend out of FH 2020 of 1c but I can't see how they will make a profit given the coal prices for the FY year so far. So its coming out of cash flow only.

Coking coal in Mongolia in the reports currently seems marginal at best at the moment.

Given the poor price of thermal coal over first six months of this FY - and perhaps in the future ,
given that Blair Athol only has a current life of 6 - 7 yrs at best and
given there is around $150m Debt to pay back over next 5 years and,
given there is around $70m of remediation work to do as well

where is TER going make its money going forward after paying its interest bill and debt reduction and from what resources?

Not trying to be negative and I am obviously missing something. Could you or someone tell me where the value is in this company?

Thanks.