CINR

Ciner Resources LP

Industrial/Transportation


Presented:10/27/2015
Price:$24.38
Cap:$0.48B
Current Price:$25.33
Cap:$0.50B

Presented

Date10/27/2015
Price$24.38
Market Cap$0.48B
Ent Value$0.70B
P/E Ratio10.06x
Book Value$7.47
Div Yield0%
Shares O/S19.60M
Ave Daily Vol49,155
Short Int0.33%

Current

Price$25.33
Market Cap$0.50B
Ciner Resources LP engages in the trona ore mining and soda ash production business. The company is a producer of soda ash in the world, serving a global market from its facility in the green river basin of Wyoming. The company was founded on April 22, 2013 and is headquartered in Atlanta, GA.

This idea was presented at the Excellence in Investing Conference, San Francisco on 10/27/2015.
Please note, on 11/6/15 OCI Resources LP (OCIR) changed it’s company name and ticker to Ciner Resources LP (CINR).

Publicly traded companies mentioned herein: FMC Corp (FMC), OCI Company Ltd (010060 KS), OCI Partners LP (OCIP), Ciner Resources LP (CINR), Tata Chemicals Ltd (TTCH IN), Tronox Ltd (TROX)

Highlights

The presenter said he went “sifting for value” through the pile of MLPs that were pulled down with the larger selloff of the group, and said he views OCI Resources (OCIR) as a “unique player in a niche segment of the market (soda ash) with limited Street coverage.” OCIR is the lowest cost producer of soda ash in the world, and its cost structure should improve as its gas hedges roll off over time. European and Chinese producers make synthetic soda ash, which costs at least 2x - 3x more to make (not including transportation costs that make it prohibitive to export). The entry point is attractive as OCIR’s +9% dividend yield is supported by “very stable” revenue due to global soda ash pricing dynamics, and the company is underleveraged for an MLP at 1x Total Debt/ EBITDA. Additionally, recent deal activity at favorable multiples suggest the stock would be more fairly valued at ~$28 (vs. the low $20s today).

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Idea Discussion

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