Monarch Cement Co

Monarch Cement has been a notable contributor to our portfolio, reflecting its strong market position and growth potential. The company operates in a sector that, while often overlooked, offers significant organic and inorganic growth opportunities. We believe that Monarch Cement's dominant market position allows it to capitalize on these opportunities effectively, making it an attractive investment at current valuations. Our continued investment in Monarch Cement is a testament to our confidence in its future performance.

Monarch Cement has appreciated this year as its stock moved from the Pink Market to the OTCQX Best Market, thereby expanding the availability of trading to additional brokerages. In May they completed the construction of their $36mm solar array that is capable of producing 35mm kwh of electricity annually. At 14c per kwh that implies almost $5m of cost savings that the company should start benefitting from in Q2 (in addition to tax incentives).

The Monarch Cement Company has quietly become a top ten holding for the fund after delivering solid 2024 results. Despite the overall economic environment, Monarch has successfully implemented an 8% price increase in January, which should positively impact revenues. While I do not expect Monarch to sell more cement this year than last, the company is well-positioned to maintain good pricing power and utilization due to underinvestment in production following the Financial Crisis. Both Monarch and Titan Cement trade at a substantial discount to fair value, indicating potential for future appreciation.

The Monarch Cement Company has quietly become a top ten holding for the fund after delivering solid 2024 results. Despite the overall economic environment, Monarch has successfully implemented an 8% price increase in January, which should positively impact revenues. While I do not expect Monarch to sell more cement this year than last, the company is well-positioned to maintain good pricing power and utilization due to underinvestment in production following the Financial Crisis. This positions Monarch favorably in the cement industry, which is a major contributor to Alluvial’s recent returns.

The Monarch Cement Company has quietly become a top ten holding for the fund after delivering solid 2024 results. Despite the overall economic environment, Monarch has successfully implemented an 8% price increase in January, which should positively impact revenues. While I do not expect Monarch to sell more cement this year than last, the company is well-positioned to maintain good pricing power and utilization due to historical underinvestment in production following the Financial Crisis. This positions Monarch favorably in the cement industry.

Monarch Cement ('MCEM') recently announced another special dividend after having previously paid one out in December. This will bring their total dividends paid to $7.75 over the past 4 quarters (~6% yield). The company recently moved from the Pink Sheets to OTCQX Best Market - hopefully this will enhance liquidity and valuation. Lastly, management provided attractive guidance for continued pricing strength and energy savings from their solar investment.