Steppe Cement Share Discussion Threads

[danmart2] 27/6/2024 19:23

Fully expect another dividend this year , big summer ahead

[dodger777] 27/6/2024 19:17

I guess to the share price was well pumped up because of the dividends they were paying out. Who knows what’s happening with dividend payments now.

[aleman] 27/6/2024 18:24

They've just released results that showed $8m operating cashflow (adj for stocks) in H2 when the Kazakh cement market was improving but still far from great. If shareholders are going to sell shares at 2/3rds of a solid and rising NAV and generating good levels of cash, then I don't think you can really blame management for them selling. I'm more inclided to blame fickle investors and an incoming government that is having trouble convincing markets that it's going to be a steady hand on the tiller. (Please note I'm not suggesting the outgoing government as a steady hand on the tiller, either!)

[dodger777] 27/6/2024 17:49

Taking a pure guess, manipulation with added management bending over backwards to allow the major shareholder to walk away with this at knock down price.

Anyone else care to guess…

[tigerbythetail] 27/6/2024 15:50

Does anybody understand the current share price weakness? Any negative developments?
These are now long term lows for this company, and the market cap is way out of balance with the true value of the company's assets.

[wilo101] 20/6/2024 04:08

The cash was used instead of bank funding to self-fund, hence the no debt at year end,

[danmart2] 19/6/2024 20:02

Skinny AGM on the 12th July

[dodger777] 19/6/2024 19:21

I had always assumed they had set as side the cash they were going to payout as dividend. Certainly more than the capital reduction option they took. The ‘initial’; comment to me reads as the case so once they get themselves sorted out I’m hopeful of getting a good further payout. Of course how long it takes to get sorted out is another matter at the sloth speed this lot go at.

[zangdook] 19/6/2024 09:26

the word 'initial' is hopeful

[fozzie] 19/6/2024 09:22

That's one way of looking at it ;0)

[renewed1] 19/6/2024 09:18

Mmmm well looks like no return this year then!!!!

[zangdook] 19/6/2024 09:08

This bit is clearer:

"As communicated before and in this report, changes in taxation in Malaysia and uncertainties in the tax treatment in the Netherlands created a substantial risk of cash erosion in our ordinary dividend flow. Despite repeated requests to reputable tax advisers, no assurance could be obtained regarding the potential impact of these changes. To provide a short-term alternative solution to the payment of a dividend to shareholders, the Board reached the conclusion that a capital reduction would allow an initial cash payment to the Company’s shareholders in 2024, and intends to undertake a legal restructuring in the chain of ownership of some of the Company’s subsidiaries which will provide an efficient and permanent answer to the Company’s new tax environment. Further updates will be announced in due course."

[aleman] 19/6/2024 08:28

If they wind production down when stocks get high, costs reduce and it increases profit. However, the conversion back into cash will deliver amounts that depend very much on market conditions. Presumably, the company thinks an improving economy will see demand and prices pick up a bit. That is not a foregone conclusion. It will still generate cash eventually though, even if not as much as hoped.

[tag57] 19/6/2024 08:22

Aleman, my concern with the increased clinker stocks is if they are just pulling forward production resulting in lower summer production requirements.
Management have increased production capacity so just wondering if the local market can absorb this additional volume without pricing having to drop. Any thoughts? Cheers Tag

[zangdook] 19/6/2024 08:21

"Over the past fourteen months the Board and management have been working continuously to explore all possible alternatives, concluding that the Capital repurchase announced on 5th of April 2024 and concluded on 23rd of May 2023 (sic) was the most effective method of distributing funds to shareholders. The Board has resolved to restructure existing group to minimize the number of jurisdictions in which it has incorporated entities, and a strategy has been developed to effect this over coming years."

Years?

And will this restructuring definitely enable dividends to be paid again?

[aleman] 19/6/2024 08:16

Kazakhstan May cement production was down about 3-4% on the last few years' May value. So slightly disappointing but not bad. H1/2024 looks to be setting up to be relatively weakish but likely better than H1 2023's breakeven. We will probably enter H2 2024 with very high clinker stocks that will eventually be turned back into cash. It increases costs to build these stocks and will have held profit back slightly so the underlying picture is probably a little better than the headline profit.

[golden prospect] 19/6/2024 07:57

Thanks Aleman.

Also "clinker production has already increased by 27% in the first quarter of 2024."

Previously reported as 25% in Q1 update.

[aleman] 19/6/2024 07:49

As speculated, H2 results were not great but much improved. $5m profit and $8m operating cashflow in H2 before a lot of that cash was invested in raising clinker stocks. That should turn back into cash in the summer. The better trading was also reflected in an improved balance sheet - $80m of tangible assets and no net debt. It makes market cap of £40m look a bit too low on a NAV basis but there are a few unique issues with this company that make that understandable.

[danmart2] 18/6/2024 10:12

Kazakh economy steady, Chinese cheap cement plants still a pain for other producers but there product is generally lower grade

[jimmladd1] 12/6/2024 13:58

Now in AJB... And they've had the cheek to date it as the 7th

[zangdook] 12/6/2024 09:57

fozzie - maybe people who complain get priority

[zangdook] 12/6/2024 09:56

I have it in iweb now. It's ISA, and they're usually not this bad. The GLEN payment (also an RoC) was delayed even longer. It's true that Lloyds/Halifax who run iWeb are very cautious about rules but taking a week or more to process a regular payment like GLEN suggests they're just being useless.

[aleman] 12/6/2024 09:43

Could there be a problem with it not being income? For non-ISA, non-pensions accounts, there could be problems for some if tax gets miscalculated because they lazily credit it to an income account to suit their systems when it is not for tax purposes. It might be this that causes delays for some.

[nik7907] 12/6/2024 09:18

Have received distribution in Iweb.