Business Model of Geo Energy
Geo Energy (SGX Stock Ticker RE4) is a coal producer established in 2008 and listed on the Singapore Stock Exchange’s main board in 2012. It owns several coal mines over 17,000 hectares and has almost 100 million tonnes of coal reserves. After its IPO, Geo Energy was mired in years of unprofitability as coal prices nosedived from the highs experienced in 2010. Long-time shareholders have suffered as a result. Oh yes, you can count Jim Rogers as one of them too. Jim Rogers became a Geo Energy board of director since December 2012. In 2015, the board appointed a new CEO. It marked the start of a dramatic turnaround for Geo Energy as indicated in its 2016 annual report. The new CEO has rationalized a new and scalable business model for Geo Energy as shown below.Diagram 1: Value Chain Analysis of Geo Energy
