SOLVY - Ciner Resources: Market Conditions Are Improving But The Wait Is Far From Over
- Conditions in the soda ash market have improved markedly in recent months, which bodes well for Green River, WY-based producer Ciner Resources LP's ("Ciner") 2022 sales contracts.
- Distributions to unitholders, which were scrapped in 2020, are unlikely to be reinstated anytime soon as Ciner needs to accrue money ahead of a planned capacity expansion.
- The business is cost-advantaged but governance remains a question mark. The jury is still out on the marketing agreement with the Turkish parent company, in particular.
- I remain invested, but I think a return to the $25 zone will require a multi-year investment horizon.
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Ciner Resources: Market Conditions Are Improving, But The Wait Is Far From Over