According to the latest World Bank report, coal prices had reached an all-time high in March following the start of the war in Ukraine. The surge is due to the increased demand for coal as a substitute for natural gas in electricity generation. Against this backdrop, Geo Energy share price stunned many investors as the share price of the coal mining group crashed from a high of $0.58 in April 2022 to the current $0.38. The bizarre drop led to a query from a concerned SG Wealth Builder Member.
What made the meltdown of Geo Energy share price so extraordinary was that it came on the back of a stellar financial performance. In February 2022, the Group announced that net profit for FY2021 amounted to US$179.1 million, representing a complete turnaround from the net loss of US$11.5 million from operations in 2020. However, a deeper analysis revealed that the outlook for Geo Energy may not be so rosy in the near future....