31 Aug 2024EGP CapitalBRLHeldEGP Capital continues to hold Bathurst Resources because the metallurgical coal producer's cash generation has kept growing despite a depressed share price that the manager believes now implies a negative enterprise value. EGP Capital notes the company's share of cash held in its 65%-owned BT Mining joint venture increased from NZ$76 million two years ago to NZ$140.7 million at last report, even after funding operations and reserve growth. The manager acknowledges near-term challenges, including a rail tunnel collapse forcing more expensive road-based coal shipments, and ASX scrutiny over whether jointly controlled cash should be classified as consolidated, but argues the current valuation is inconsistent with a business generating strong, steady cash flow in an undersupplied coking coal market, absent a collapse in coal prices or a sharp deterioration in management performance.
31 Aug 2024EGP CapitalMCEHeldEGP Capital continues to hold Matrix Composites & Engineering because it believes the market has overlooked a strong half-year result in favor of near-term concerns about order book visibility. The manager highlights roughly $58 million of revenue, $10.4 million of EBITDA and $7.2 million of NPAT for the period, which if annualized would imply a low EV/EBITDA multiple against the company's roughly $55 million enterprise value, even as work in hand fell from $84 million to $33 million over the same six months. EGP Capital notes management has flagged around $300 million of quotes submitted and $200 million of upcoming quotations, and points to the company's manufacturing facility having historically generated more than $155 million in annual revenue, suggesting significant upside if historical win rates on the current pipeline are maintained.
EGP Capital is a small, deep-value Australian equities fund manager led by Tony Hansen, specializing in micro-cap and often illiquid ASX-listed companies overlooked by mainstream institutional investors. The firm applies rigorous, old-fashioned value investing principles, seeking significantly undervalued businesses with strong balance sheets and modest expectations already priced in, and is willing to hold concentrated, illiquid positions for extended periods. EGP is known for candid, detailed public commentary explaining its investment reasoning and philosophy to unitholders. The fund's small scale allows it to invest in genuinely under-researched micro-cap opportunities that larger institutional managers cannot practically access.
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11,356 comments from 164 managers on 761 companies, snapshot 15 Oct 2026.
31 Aug 2024EGP CapitalBRLHeldEGP Capital continues to hold Bathurst Resources because the metallurgical coal producer's cash generation has kept growing despite a depressed share price that the manager believes now implies a negative enterprise value. EGP Capital notes the company's share of cash held in its 65%-owned BT Mining joint venture increased from NZ$76 million two years ago to NZ$140.7 million at last report, even after funding operations and reserve growth. The manager acknowledges near-term challenges, including a rail tunnel collapse forcing more expensive road-based coal shipments, and ASX scrutiny over whether jointly controlled cash should be classified as consolidated, but argues the current valuation is inconsistent with a business generating strong, steady cash flow in an undersupplied coking coal market, absent a collapse in coal prices or a sharp deterioration in management performance.
31 Aug 2024EGP CapitalMCEHeldEGP Capital continues to hold Matrix Composites & Engineering because it believes the market has overlooked a strong half-year result in favor of near-term concerns about order book visibility. The manager highlights roughly $58 million of revenue, $10.4 million of EBITDA and $7.2 million of NPAT for the period, which if annualized would imply a low EV/EBITDA multiple against the company's roughly $55 million enterprise value, even as work in hand fell from $84 million to $33 million over the same six months. EGP Capital notes management has flagged around $300 million of quotes submitted and $200 million of upcoming quotations, and points to the company's manufacturing facility having historically generated more than $155 million in annual revenue, suggesting significant upside if historical win rates on the current pipeline are maintained.
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