Coal miner Geo Energy Resources is standing its ground, with chief executive Tung Kum Hon saying it will not follow in the footsteps of competitor Golden Energy and Resources in exiting the coal sector.

Today, more investors and banks are scrutinising environmental, social and governance factors. This means coal miners such as Geo Energy might find themselves in a difficult position to secure funding or make new investments.

Geo Energy, however, is debt free. The company had US$214.7 million in cash at end-September, which might come in handy for acquisitions at a time when the valuations of coal assets are down.

Coal prices have been hovering at elevated levels, offering attractive margins for companies that know how to keep their costs under control and capitalise on operational efficiencies. Geo Energy might surprise investors, even as its competitors exit the industry.

SOURCE: BLOOMBERG

PHOTO: REUTERS