CEY 0.00% $6.16 centennial coal company limited

-is looking positive

  1. 7,397 Posts.

    CEY has bottomed out after Rothchild has sold down ,
    The chart is looking bullish ,
    Low p/e
    High eps
    ING have taken a position and in this market climate CEY is well worth a look .

    ********************

    CENTENNIAL COAL COMPANY LIMITED 2002-06-03 ASX-SIGNAL-G

    HOMEX - Sydney

    +++++++++++++++++++++++++
    N M Rothschild Australia Holdings Pty Limited ceased to be a
    substantial shareholder in Centennial Coal Company Limited on
    01/06/2002.


    ____________________________________________
    Business Description
    Centennial Coal Company Ltd. (CEY) is an Australian-owned thermal and coking coal producer with operations in New South Wales and Queensland. The company's seven mines in NSW and Queensland produce five million tonnes of coal per annum.


    Company Strategy and Prospects
    (Last Update: 6 June, 2002)
    In May 2002, CEY finalised an innovative MoU linking a new long-term coal sale agreement with Tohoku Electric of Japan to the purchase of carbon credits.

    Centennial posted a record profit of $15.1 million for the six months to December 2001. The improvement in profits is attributable to: a 31% rise in average price of coal received; the better than forecast contribution from the 50% interest in Springvale Mine; strong performance from other mines; and the utilisation of tax losses not previously brought to account.

    Management has advised that results for the six months to June 2002 are expected to be 60% above the Prospectus forecast.

    The acquisition of Springvale has seen the total number of tonnes under management increase to 5 million per annum. Approximately 65% of fiscal 2002's US$ export sales are hedged at 57.6 cents. Centennial closed out some hedge contracts at 66 cents during 2001.

    Centennial raised $43 million in equity during 2000/01 via two placements and a rights issue. This was used to reduce debt. Coupled with the restructuring of debt facilities, Centennial believes it is in a strong position to continue to grow the business going forward. Following the strong 2001 result and successful equity raising, management have indicated that they will continue to assess acquisition opportunities in the coming year.


    Analysts are forecasting strong EPS growth in 2001/02 to be followed by marginal growth in 2002/03. CEY's valuation is further boosted by a low beta and an EPS growth rate of 13% pa in the medium term. CEY is currently trading at a PE of 6 and is under valued based on the Aspect model.

 
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