Geo Energy says it has enough funds to stay in coal mining, may acquire assets

BANK funding may be turning scarce for coal companies, but Singapore-listed Geo Energy Resources said it has sufficient funds to continue in its coal mining operations. If asset prices come down, the company also has the resources to be an acquirer.

In a recent interview with The Business Times, chief executive Tung Kum Hon acknowledged that funding for the sector is “not easy” currently because banks are more cautious about funding projects in the coal space.

But Tung said Geo Energy is not in need of funding at the moment. In fact, he believes Geo Energy’s cash reserves, high liquidity and debt-free balance sheet put it in an advantageous position relative to its peers.