Back 02 Jun 2026

PhillipCapital's Chew maintains Geo Energy at 'buy' and 75 cents

Coal miner Geo Energy Resource's 1QFY2026 earnings were below the expectations of Paul Chew of PhillipCapital, due to a decline in production volume in one of the mines nearing the end of its mine life.

Having said so, the company will be boosting production in other mines, specifically, TRA, as new completed infrastructure will be better positioned to support the increase in production. From just 2.5 million tonnes in FY2025, Chew expects volume to reach 6 million tonnes this year.

In his June 2 note, Chew notes that the Indonesian commodities sector has been under pressure since the Indonesian government’s proposed centralisation of commodity export controls.

However, thus far, there are no details on implementation, but centralisation or supervision could lead to incremental fees and tighter currency controls, points out Chew.

Even so, Chew is keeping his "buy" call on the stock and target price of 75 cents.

He is keeping his forecast that the company will produce a total of between 11.5 million and 12.5 million metric tonnes for this year, versus 12.5 million metric tonnes in FY2025.

https://www.theedgesingapore.com/capital/brokers-calls/phillipcapitals-chew-maintains-geo-energy-buy-and-75-cents