CRN current market cap = 1.676b shares * $1.22 = $2.045b
Add debt (30 Jun 21) of $236m
Enterprise value = $2.28b
1) Costs ~US90/t (all up): was $88.75 in H1 and will go up slightly due to increasing royalty payments which are price based
2) Revenue: Realised 75% of Platts PLV HCC Aus in H1
3) Production: ~18Mt/yr (as per above "Sales volume") or 1.5Mt/mo
What if CRN hedged at the current SGX coking coal curve for the next 12 months?
In September, it could earn ((300 * 75%) - 90 ) * 1.5 = USD 202.5m
Now calculate the next 11 months:
Yes, the company could earn over $2.5b if it hedged the next 12 months, which is MORE than the current enterprise value of $2.28b.
Note this is a theoretical example. Noone hedges 100% due to risks including failure of supply and effectiveness of SGX futures pricing vs actual pricing. However i can certainly see a place for at least 50% of production being hedged for the next 12months.
If CRN hedged...
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Last
$1.20 |
Change
0.015(1.27%) |
Mkt cap ! $2.011B | |||
| Open | High | Low | Value | Volume |
| $1.20 | $1.21 | $1.18 | $2.620M | 2.189M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 6 | 129838 | $1.19 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.20 | 122848 | 9 |
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| Last trade - 16.10pm 03/05/2024 (20 minute delay) ? |
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Last
$1.20 |
Change
0.015 ( 1.07 %) |
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| Open | High | Low | Volume | ||
| $1.19 | $1.21 | $1.18 | 921304 | ||
| Last updated 15.59pm 03/05/2024 ? | |||||
| CRN (ASX) Chart |