Montauk Holdings Limited. JSE: MNK

Montauk shares

Background of Montauk

  • Montauk Holdings is an investment holding company formed in South Africa in 2014 through the unbundling of Hosken Consolidated shares. The fully-integrated company focuses on the development and operation of large scale renewable energy projects (utilising landfill methane) through various operating subsidiaries in the USA.

  • Headquartered in Pittsburgh Pennsylvania, the group has a 20 year history in the field, with expertise in pipeline quality gas production, electric power generation, carbon reduction and offset credits, renewable energy credits and landfill gas (LFG) collection systems. Montauk’s established operational portfolio covers 14 LFG sites, and the group is recognised as the largest LFG-derived pipeline quality gas producer in the United States.

  • Montauk shares are for sale on the Johannesburg Stock Exchange (JSE) with a market cap of R2.4 billion. The live online stocks chart shows a burgeoning Montauk share price since listing in 2014.

Montauk Shares Growth Driver

  • Montauk aims to provide turnkey services relating to development, operation and management of LFG energy projects, through a comprehensive service incorporating regulatory compliance, engineering, construction, operations and back-office functions. The group differentiates itself through expertise in all categories of beneficial commercial use for processed LFG.

  • Pricing of electricity and natural gas is a major factor in influencing the group’s performance. The business is prone to higher production costs when compared to fossil fuel producers, mainly because of variability in production of landfill methane and the capital intensive process needed to recover and process the product from raw landfill gas. In recent years, depressed electricity and natural gas commodity pricing in the US has negatively impacted on Montauk’s financial data and prevented shareholders from receiving dividends.

  • The company suffered a $21 million loss in 2015, but managed to return to a $2 million profit in 2016. Revenue was up by 73%, with the increase mainly as a result of a huge increase in sales of cellulosic Renewable Identification Numbers (RINs), credits used to measure compliance. Revenue from renewable natural gas facilities was up by 128%, but revenue at electric generation facilities decreased by 30%.

  • The year also saw the group buy Leaf LFG US Investments, which comprises three additional renewable natural gas facilities located in Pennsylvania, for $4.5 million in cash.

Montauk Group Investor Tip

  • Montauk shares have been a good rand-hedge buy for investors, with Montauk share price increasing from R2.20 when listing, up to R17 in September 2016.

  • With pricing still under pressure, Montauk has said that long-term recovery will depend on increased demand from coal-to-gas switching for electric generation, as well as the development of the landfill natural gas export market to off-set continued shale gas production. In the current market, the company is focusing on positioning itself to capitalise on opportunities that will develop in future. This includes regulation that will allow existing projects to capture additional premiums as they becomeavailable.

  • Despite subdued results and an uncertain forecast, Montauk shares have performed admirably on the JSE, and are an attractive buy for local investors.

Montauk Major Shareholders

Rivetprops 47, Majorshelf 183, MJA Golding.

  • Sector

    Utilities

  • Industry

    Utilities

  • Sub industry

    Power Generation

How to buy Montauk Group Shares

  • Montauk : How to buy Montauk Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Montauk Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Montauk Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Montauk Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Montauk Group.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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<a href="https://www.sashares.co.za/montauk-shares">Credits: SA Shares™</a>
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