Steppe Cement Share Discussion Threads

[wilo101] 03/8/2023 12:23

Season not perfect but quite good and much activity, full result will be known after winter onsets, as always, hence the 11/23 dividend

[aleman] 03/8/2023 12:17

Please note that the trading update was mid-July and so the STCM board will likely have been aware of the better total market volumes for May and June. I'd like to see July figures come in strong as well before I start getting optimistic again. 3 or 4 months of strong volumes is then much more likely to see better prices.

[wanobi] 03/8/2023 12:03

many thanx aleman, Cheers Wan :-)

[aleman] 03/8/2023 11:55

November to March saw Kazahk cement volume output well down on the previous year thanks to some unusually cold weather disruption and prioritising coal on railways. April was only marginally down but May and June are both actually higher than 2022 (though still marginally down on 2021). It's looking more like a winter weather disruption than an underlying weaker cement trend due to general economic factors. This is volume, though. The pricing trend could alter this trend a little but at least the volume trend in the warmer months is looking good.

[king suarez] 03/8/2023 10:27

Thanks Aleman, that suggests a bit of a recovery potentially?

[aleman] 03/8/2023 10:08

Kazahkstan Composite PMI rises from 51.6 in June to 51.9 in July. Manufacturing was strong but services weakened marginally. It was below 50 from September to February.

[eggbaconandbubble] 29/7/2023 13:22

Abu Hanza (as I call him) Wan Hamza? and Mr Crighton-Ward must be well ticked off.
I think that some major management decisions need to be made, or if they have been then these decisions should be better communicated to the shareholders. I think it's called PR!

[king suarez] 29/7/2023 12:59

wilo101 - think that's the first negative post I've seen from you on STCM/management since I have been invested here (several years!) what gives?

[xasy] 29/7/2023 02:48

No, the share price is down because they cut the dividend.

[wilo101] 29/7/2023 02:36

share price stuck in the doldrums again, and as usual, the current management is hopeless at truly developing the company and taking it forward, due to their far too many and conflicting other private interests, as is plain for all to see

[tigerbythetail] 17/7/2023 16:53

For myself, I'm happy to buy shares in this solid well-run company at less than 30p.
The share price will do its thing, and it may well drop a bit further in the next few months, but the underlying business is sound and in due course the share price will rebound.

[poggy120] 17/7/2023 12:44

Ah well, another holding for the sock drawer. Forget about it and hope it gives me a pleasant surprise somewhere down the line.

[aleman] 12/7/2023 22:07

danmart2
12 Jul '23 - 20:21 - 5652 of 5653
0 0 0
It’s done well to stay at 32p today

Book value is £50m with nothing airy fairy in there and that probably undervalues the current break-up value. The assets would probably be worth more to a competitor than the current market price even if it was not making money. Imagine being able to take out a competitor at book value - not that I think the business is likely to be sold. How much would it cost to build a similar new plant and how long would it take to get consents, design and build? For me, the book value and certain uplifts would set a rough lower limit for a reasonable valuation, assuming no black swans/catastrophes. Of course, the market is not always rational.

[king suarez] 12/7/2023 21:41

Thank you very much Andydaf for that feedback.

[danmart2] 12/7/2023 20:21

It’s done well to stay at 32p today

[aleman] 12/7/2023 17:20

They had two bouts of extreme cold - November and January (with disruptive snow) - causing problems with short term coal supplies. About 70% of electricity is generated from coal. They are modernising some of the coal stations and plan to build out renewables. Not sure what overall effects these might have. Since rail got clogged up with coal through the winter, maybe they will modernise or expand that, too? I can't help but think that building more houses will then need more cement demand for infrastructure but I need to do more research.

[andydaf] 12/7/2023 17:04

The new holding company has been formed in Astana and has a bank account and the restructure should be complete by end of october.Management said they are cash positive and clinker,coal etc are all well stocked.Just think they are being very prudent and i cant say i blame them.These are strange times and never hurts to have a little for a rainy day.Last winter was very cold minus 35 in november!however thats in the past lets hope things improve and the factory sells its production.They are going to concentrate on home market as turnaround times on the rail wagons has gone from 8days to 12days and this will save them from leaseing/buying more wagons.All in all seems to have been a difficult winter but seems things are getting better.GLA

[zangdook] 12/7/2023 16:42

So the message is they could afford a 4p or 5p dividend but they want to conserve cash for now? Was there any particular thing they might need the money for? It can't all be for spare parts? Is the possible delay in paying the dividend ("before November") because they want to complete the restructuring first?

[andydaf] 12/7/2023 16:34

Having attended the zoom meeting of the agm i feel comfortable with my investment here and will most likely buy some more if the price falls into the twenties.Dividend will be conservative as management do not want to have to borrow any money with commercial rates at 20% in Kazakhstan,cash is being tied up on spare parts as lead times are 6 to 9 months on spare parts,outlook for july to october is better.Inflation seems to have peaked in Kazakhstan and is on the way down.2 or 3 pence dividend is fine by me in tough times.Management seemed pretty relaxed and lets be honest they own a sizeable part of this business.As for witholding tax they are setting up a holding company in Astana so dividends will avoid witholding taz though this will mean only one dividend a year and no interims.As always GLA

[leopoldalcox] 12/7/2023 12:11

Not a great update. Macro environment appears to be hurting here at least in the short term. Potential buying opportunity may present itself. The question is when. I'm also a bit sceptical about the withholding tax issue. I flagged before they never stated it was resolved - they just announced the divi. Seems like they're still figuring it out and I think they need to be more transparent

[leopoldalcox] 12/7/2023 12:09

Probably better access to a wider pool of capital. Most resource companies do this to be fair

[farrugia] 12/7/2023 12:02

and why are they listed in London and not on the Astana exchange (Kazakhstan). Something to ponder about? I don't particularly like companies which are listed in a different country to their business.

[apfindley] 12/7/2023 10:13

Still a solid business here and long term hold, but likely to see a short term dip well into the 20's for a few months.Pretty much like a couple years ago...and look how well it recovered then also.Good opportunity to load up in the 20s, as before.

[zangdook] 12/7/2023 09:55

Did anyone get into the AGM? Did they give any further explanation of what's going on with the dividend? I get stuck in traffic and missed it :-(

[11_percent] 12/7/2023 09:10

This does not have much going for it now.

2-3p in a few months time....and a (uncertain) divi in a year....thats about it.