- 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.
For further details see:
Ciner Resources: Distributions Roar Back With A 8% Yield But Risks Remain