R.e.a Share Discussion Threads

[nobull] 22/4/2022 13:27

Foxfox, I think it is a tax charge that needs to be made in the accounting period being reported on, but for which the actual tax cash payment isn't due until perhaps a future accounting period.

"The deferred tax charge of $10.9 million primarily relates to: $4.1 million in respect of tax losses utilised in the year (2020: $4.2 million), $2.7 million of foreign exchange losses on retranslation (2020: gain of $1.8 million) and a $3.5 million charge from the effect of tax rate changes (2020: charge of $9.0 million). As reported in the 2020 annual report, corporation tax rates in Indonesia were scheduled to reduce from a previous level of 25 per cent, through 22 per cent in 2021 and to 20 per cent from 2022 onwards. Deferred tax assets and liabilities were calculated on this basis at 31 December 2020 resulting in a significant deferred tax credit in 2020. The Indonesian government has now decided that the previously announced reduction to 20 per cent will not go ahead and, therefore, the deferred tax liabilities have again been recomputed to 22 per cent."

So I don't think 68.3% is going to be the normal rate of profits tax in future accounting periods. A lot of the charge this year seems to be a reversal of the previous year's tax credit, an accounting period when the tax credit was badly needed to stop the share price plummeting, I wonder?

[foxfox79] 22/4/2022 11:48

Nobull, what exactly is the origin of the deferred tax?
thx

[nobull] 22/4/2022 09:59

But for that 68% tax charge, we'd have had an NPAT of $23m instead of that lower $9.3m figure, and with a $23m NPAT we'd have surely had +ve eps attributable to the ords instead of the lps of 3.4 cents.

[ntv] 22/4/2022 09:47

Lol , your not the only one who wants to see a vast improvement in the debt levels!
Hopefully an AGM statement will be forthcoming and show a vast improvement in those levels

[foxfox79] 22/4/2022 09:18

Yes somewhat disappointing earnings, yet, i don't see cpo plummeting at least not to 600, base price probably 800, so this will slowly grind higher next years. Still this addiction to debt and financing through preference shares doesn't inspire much confidende in management - not a good combination in the agro sector.

[nobull] 22/4/2022 08:44

"Still an very interesting situation here"
Yes, NTV. I really want to see net debt plummet by about $40m or $50m, but that could take a couple of years. I guess the share price has to stand still for a bit while we clear the pref arrears and service the pref divs (total cost to do all that is about $24.3m, I think). Pleased to see your AEP has suddenly improved.

[ntv] 22/4/2022 08:37

Lots of extras in the accounts
Extra Pref dividend to be announced in June could be interesting
Tried to rough what they are getting currently at an extra $250 per tonne
Pity not more of update to current situation as these accounts are 4 months out of date
Agree nobull that stone work is a bit slow in getting started but so many things do in nearly every country
Coal loans should being repaid monthly and that is going to help a lot in the future
Still an very interesting situation here

[nobull] 22/4/2022 07:29

A deferred tax charge of $11.35m - what a shocker. The minute we make a profit, and it is all taken away in tax. A tax rate of over 60%. Shocking.

Pleased to see they have plans to do some extension planting - but it all feels behind schedule, particularly the stone quarrying. The $200 profit per tonne of coal (not for us - for IPA and the contractor) surely won't last long.

Not expecting these to rise on these results, but what do I know? Nothing.

[ntv] 14/4/2022 10:30

No, as Indonesian government have rules against it to limit foreign ownership

[rolo7] 14/4/2022 10:00

I notice aep got a load of cash could they take this out?

[nobull] 06/4/2022 14:21

"So, despite hurdles set by the Indonesians RE will make record profits."

FY2021 is now ancient history even if they haven't reported those results yet. The market has long figured out those will be good (the reason for the 200%+ share price rise in the last 6 months?).

What maybe matters now is the current ex-mill-gate price they are getting and how much higher it is compared with the average for FY2021.

I think we might be getting about $1,000 a tonne now (compared with, say, $800 last year), assuming they aren't having to sell forward the stuff at a massive discount, all just to pay the bills on time.

Yes, the profits for FY2022 (reporting in April/May 2023) should be good, ignoring the effect of the level of pref div arrears they choose to pay out. But it is too early to get really excited about April 2023. Don't forget the dilutive effect of the warrants in 2025. Fingers crossed for these to go to £3 some time next year, perhaps when we can make a real dent on the net debt figure/or get loads of extension planting done on vacant land. AIMO. DYOR.

[undervaluedassets] 06/4/2022 12:30

Re the above I get it ..

However, these shares could still double and triple from here.

Palm oil prices are some 80% above the last all-time highs which were seen in 2011.

So, despite hurdles set by the Indonesians RE will make record profits.

[nobull] 04/3/2022 07:25

Great news that our cheapest(?) finance has been extended until 30 06 26. Not sure how much of yesterday's 20.5p rise to 166.5p was due to this and was due to the coal price spike and the uplift in the whole palm oil price curve (except for front month which dropped a bit yesterday after a stonking rise of about 500 ringgit on the previous trading day. Palm oil seems to be trading at a, get this, premium to soybean oil.

[cwa1] 04/3/2022 07:22

Extension of dollar notes approved

[ceaserxzy] 03/3/2022 18:34

Glencore is perhaps the biggest coal producer but it also mining a lot of other materials.

[thefartingcommie] 03/3/2022 17:26

Spot month palm oil futures above MR 8,000/mt for first time

Buyers stuck between stalled Ukraine cargoes, high palm oil prices

Market adjusting to new dynamics: analysts

Anxious Indian buyers, with no clarity on sunflower oil shipments out of Ukraine, are turning to crude palm oil from Malaysia to fulfill demand ahead of month-long Ramadan which starts in early April, industry sources told S&P Global Platts

"Panic at destinations specially at India about the supply chain is resulting in buyers looking to cover oil from every source and the asked price," Vivek Pathak, managing director of India-based trading house Athena Tradewinds, which deals predominantly in sunflower oil said in a Feb. 28 note.

Last month, 500,000 mt of sunflower oil was expected to leave Ukraine and the March line up so far is also around 450,000 mt, of which India buys roughly 250,000 mt each month, Pathak said.

Buyers are currently not placing new orders for Ukrainian sunflower oil as they have not been able to track their shipments since Russia invaded Ukraine on Feb. 24, sources said.

Ukraine accounts for 46% of the world's sunflower oil exports and the ongoing war represents a significant disruption to the global edible oils trade flows as the market was looking for an increase in sunflower oil exports from Ukraine to partially relieve the current tight supply in global edible oil markets, CGS-CIMB Research

[wigwammer] 03/3/2022 16:42

So again, someone believes record high palm oil prices are BEARISH for the stock.. the point is the palm oil index could fall 30% from here, and still justify a pricing of the ords materially above where they are now.

[nobull] 03/3/2022 16:14

Off topic "Are there any other listed coal miners ?" This might be the time to get yourself out to Moscow with a suitcase full of money and buy all those shares being dumped at 95% below fair value by western companies pulling out in droves from Russia. I agree it is a most unpatriotic thing to do and I agree it is not without significant expropriation risk.

[nobull] 03/3/2022 15:51

More that 3 x its all time 10 year high, and up 8 times from its low of about 14 months ago!

[wigwammer] 03/3/2022 15:29

Pleased that's the perception of an average punter. Probably means it will double again.

[cwa1] 03/3/2022 14:11

Frothy :-)

[coolen] 03/3/2022 13:33

Are there any other listed coal miners ?

[wigwammer] 03/3/2022 09:53

Buy then! It's bullish, not bearish.