COMPANY COMMENT: Montauk still able to surge to new heights
Some parties are betting big on the future
Although cryptocurrency darling bitcoin holds centre stage, consider for a moment that shares in US-based gas and electricity producer Montauk have soared more than 50% on the JSE since November 21. A few years ago, Montauk was unbundled from investment counter Hosken Consolidated Investments (HCI). The market initially did not take too much notice — even when a few HCI directors including CEO Johnny Copelyn, loaded up on Montauk shares. The shares traded as low as 200c in mid-December 2014, a few days after the company was listed. The difficulty, at first, with Montauk was that local investors had a hard time grasping the business model, which operationally revolves around generating gas and electricity from US landfill sites. But the X-factor lies in the RIN (renewable identification number) credits that are earned as a renewable producer. Of late, Montauk’s performance has been encouraging, and interim numbers to end-September showed headline earnings up 53% to 7 US cents per sha...
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