Kategori: Mining

On rating front, Pemeringkat Efek Indonesia (Pefindo) lowered PT Medco Energi Internasional, Tbk (MEDC:IJ) to idA+/stable (from idAA-/negative) along with its Shelf Registered Bond I 2012-2013, USD bond I 2011-2012 and Bond III/2012. Downgrade was driven by continued weak crude prices which resulted a weaker revenue and profitability. In 1H2015, the company realized lower revenue.

On rating front, Pemeringkat Efek Indonesia (Pefindo), local rating agency, downgraded two companies last week; Aneka Tambang, Tbk (ANTM:IJ) and Wika Realty. Aneka Tambang was lowered to A-/negative (from A/negative) on the back of weakening business margin due to the decline ferronickel prices amid increasing funding needs for the expansion of capacity of ferronickel plant.

PT Bukit Asam (PTBA IJ, BUY, TP: IDR14,400) through its subsidiary PT Bukit Multi Investama is planning to acquire a gold mining service company before the end of this year. The company is still in due diligence process. This action is believed to add more value and synergy to Bukit Asam, but no details regarding.

PT Tambang Batubara Bukit Asam (PTBA IJ, BUY) is ready to operate its 2×110 MW Independent Power Producer (IPP) by 4Q14. Management stated that the IPP will be able to absorb 1.4m tonnes of coal. Another IPP that will be commercialized next is the 2×620 MW Banko Tengah IPP, it is expected to operate in.

Medco Energi Internasional (unrated) has expanded its oil and gas operation to Tunisia through the acquisition of Storm Ventures International (Barbados) Ltd from Chinook Energy Inc (listed on Toronto stock exchange). The transaction is now complete while Medco has gotten approval from the Tunisian government and several oil and gas exploration association of the country.

Management of PT Bukit Asam (PTBA IJ, BUY, TP: IDR12,400) intends to finish restructuring the mining concession of PT Bukit Asam Bangko (BAB). This restructuring process has been delaying the development of Bukit Asam Transpacific Railways (BATR) project. Since BAB is a joint venture between PTBA & Rajawali Group, management has stated that there is.

Bukit Asam (PTBA IJ, BUY, TP: IDR11,200) is planning to acquire 25%-30% of Ignite Energy Resources, an Australian coal company that is able to convert brown coal into metallurgical coal and synthetic oil (syncrude). So far the value of the acquisition has not been mentioned and the process is estimated to complete in 3Q14. On.

Several expansions and new contracts secured made by ABM Investama, Tbk (ABMM IJ) back in 2012, however the net earnings figure for FY12 is way below what we expected. This is mainly caused by the unexciting coal mining outlook which has dragged down margins for its mining contracting and coal mining business, putting severe pressure.

KKGI’s earnings for 3Q12 tumbled by 42% q-o-q to IDR44bn and sunk 37% y-o-y for the 9M12 period to IDR218bn, falling below our estimates. The rising production cost compressed its earnings, while its ASP remained under pressure. Following our coal price assumption revision, we also cut down KKGI’s earnings forecast for FY12f and FY13f by.

PTBA’s 3Q12 results came in lower than our estimates as rising production costs and declining ASP dragged down earnings. The quarter’s net profit reached IDR653bn, down 3% q-o-q and 6% y-o-y, making up only 65% of our full-year estimates. In view of recent weak global coal prices, we are trimming our coal price assumptions for.