SIRE - Sisecam Resources: Starting 2022 With Record Distributions But Unlikely To Last

• Sisecam Resources saw a strong end to 2021 as the soda ash market recovered, and as a result, they started 2022 by declaring a record quarterly distribution.
• When looking ahead further into 2022, the prospects for the economy to keep running hot makes for a supportive outlook.
• Although given the inverted yield curve, it seems that risks lay ahead in the following years with an economic downturn quite possible.
• This would hinder their financial performance, thereby seeing much lower distributions given the economic sensitivity of soda ash.
• Regardless, it remains uncertain whether they could sustain their record distributions even with good economic conditions, and thus, I believe that maintaining my hold rating is appropriate.

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