| Geo Energy resumed buying back its shares today, lending support to the price on a day the market absorbed shocking news of a temporary ban on coal exports by the Indonesian government. Indonesia is the world's biggest exporter of thermal coal, and its temporary ban could disrupt the near-term energy supply chain of economies such as China, India, South Korea and Japan. The Singapore-listed stock closed at 32.5 cents, down 1 cent from last Friday's close. It traded between 30 and 33 cents today. Here are Geo Energy's share purchases since it made its maiden move last month:
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Today's purchase amounted to $582,371, and reflects Geo Energy's statement two weeks ago that it considered its shares to be undervalued by the market.
Today, it said that the Indonesian Ministry of Energy and Mineral Resources (“ESDM”) had given notification on 31 December 2021 of a temporary ban of all coal export sales by Indonesian coal miners from 1 January 2022 to 31 January 2022.
ESDM stated that the temporary ban is due to concerns over critically low inventories at domestic power plants in Indonesia, which could lead to widespread blackouts in the country.
ESDM has stated that it is currently evaluating and reviewing this temporary ban, based on the realisation of the coal supply to domestic power plants companies.
Geo Energy said it has met its domestic market obligations in 2021.
"This export ban is temporary and will not affect the Group’s overall 2022 Rencana Kerja Anggaran Biaya (Work Plan and Budget) production quota and production plans."
| Meanwhile, another Singapore-listed Indonesian coal miner, Golden Energy & Resources (GEAR), closed 0.5 cent higher at 29.5 cents while its subsidiary, PT Golden Energy Mines (GEMS), rose 200 rupiah (+2.52%) on the Jakarta Exchange to 8,150 rupiah. GEAR also announced that GEMS had complied with the Domestic Market Obligation regulation - in which a minimum of 25% of mining production has to be sold for domestic purposes -- ever since this regulation came into effect in 2018, and well-exceeded the DMO obligations for 2021. |
