IMO the sp is restrained by the labor issue and the backlog of upgrades and maintenance on the existing furnaces. OMH sells a percentage of their alloys on long term contracts and if that level is 50% (not sure if thats correct but I think I read that somewhere) then little product is left when you are operating between 8 and 12 furnaces out of 16 to sell into the price spikes. The new contracts for 2022 will clearer be at a higher level than the old ones so we will see benefit in the next financials and the last half results where good but where made to look less so when combined with h1.
For the future that looks very good imo all furnaces upgraded or maintained sometime in h2 and the new furnaces coming on line in 23. Personally I dont see being "ïlliquid" will hurt them much once everything is in play. The stock went from 11c to $1.70 only a few years ago and it wasn't an issue then, in fact when TMI provided a chunk of liquidity it was a disaster for the sp although there where other mitigating factors.
With a 20 year low cost power contract and the power situation elsewhere getting worse I would not be surprised to see a bid from somewhere. They are not immune from price increases for other raw materials but power is the big one in this business. Maybe a bid will be a catalyst for a large rerate who knows.
Consistent dividends will also help the sp IMO and I dont see any reason why once everything is built/upgraded/full employment that the 20% payout will not realize a yearly dividend of around 7c
I personally own north of 600k of these and I have high hopes for them, I hope to keep them long term as an income generating asset.
I dont post much on here but I enjoy the contributions from others so please keep them coming.
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