Geo Energy

Geo Energy: OCBC has an unrated report. House recently visited its BEK Mining Concession and BJPE site (where it is a mining contractor). For its own BEK mine, GEG has produced some 1.84m tons of coal from this site as of 30 Jun; and the company believes it is on track to achieve its 2m-ton target by year end. It has also entered into five other mining concessions and these will start producing over the next few years. GEG remains upbeat about its prospects, noting strong demand from countries like China and India, even though near-term coal prices are likely to remain relatively soft due to the supply growth. OCBC do not have a rating on GEG. Currently, GEG is trading at a historical PER of 15x versus the simple average of 36x of its peers in Indonesia.