One of the world’s most competitive coal mines is on track for another record year: KGI

SINGAPORE (June 4): KGI Securities is maintaining its “buy” on Geo Energy Resources after a recent visit to its SDJ coal mine in Indonesia showed the latter is on track to achieve another record year.

Research house KGI says the SDJ coal mine is very accessible given the distance between the mines and the jetty is just 17km. From the jetty, the coal is then transported to an anchorage point that is 15km away.

“Relatively short delivery cycles and uninterrupted coal delivery have enabled Geo Energy to reduce the amount of coal inventory stockpiles, thereby reducing its inventory cost and working capital requirements. This allows Geo Energy to be among the most cost competitive coal mine globally,” says analyst Joel Ng in a Monday report.

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