CINR - Ciner Resources: Distributions Roar Back With A 8% Yield But Risks Remain

• Ciner Resources has recently reinstated their former distributions, thereby providing a high 8% yield but risks remain.
• This has been helped along by their operating cash flow recovering with their underlying result excluding temporary working capital movements hitting a post-Covid-19 record.
• Whilst their reinstated distributions are a positive development, it will also see their distributions to non-controlling interests reinstated in tandem.
• Unless they keep their capital expenditure low, it remains unlikely that their common distributions will be covered by free cash flow.
• Since this uncertainty makes their distributions risky, I believe that maintaining my neutral rating is appropriate.

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