Kategori: Mining

PTBA reported its FY11 profit of IDR3trn, a 54% y-o-y increase but fell short of our estimates and consensus. Lower than expected sales volume and significant jump in production cost were the key reason. We lowered our production forecast for 2012 and 2013 by 10% and 9% each respectively thus revising down our target price.

The company’s long-term growth plan is further reinforced by recent JORC resource announcements and new mine concession acquisitions. We are also adjusting our earnings forecasts for 2012-2013, having increased our production volume forecasts in line with the company’s targets. As such, we raise our TP for KKGI to IDR8,950 while maintaining our BUY call. JORC.

Growth momentum play After delivering another record number in terms of production volume in 2011, Resource Alam (KKGI) continues to offers the highest growth prospect in our universe of coal stocks. With 9M11 production already reaching 3.2m tonnes, it is on track to meet our 2011 full-year target of 4.3m tonnes (+91% y-o-y) and we.

We visited OKAS this early week and met the president director, Mr. Dharma Djojonegoro. Below are some key takeaways: 1. Business. The manufacturing and trading segment are in ammonium nitrate (explosives raw material) business, while service segment is a combination of service in oil and gas drilling (~70%) and mine blasting (~30%). The company strategy.

Reinstate coverage with Neutral call, TP: IDR21,150 , potential upside: -6.2%. We reinstate coverage on PTBA with a neutral call, with our TP implying a 17.1x-12.5x FY11-12f earnings. PTBA’s value hinges on its ability to execute its long-term projects that will rapidly increase the utilization of its vast coal reserves. But until more certainty emerges.

Reinstate coverage with Neutral, TP: IDR43,100, potential upside: -11.6% We reinstate coverage on ITMG with a neutral call as we believe the counter lacks specific catalysts other than taking a ride the generally robust coal sector. We believe the share price already reflects most of the positive factors. Moreover, the company’s relatively minimal volume growth.

Maintain BUY with TP of IDR2,550 We remain optimistic of ADRO’s performance going forward as the company is positioned to ride on a strong wave of coal demand, as is being reflected in the red-hot coal price. Indeed, although missing its production target and surging costs in 2010 are of concern, we believe that the.

Reiterate our BUY call, TP: IDR5,150 , potential upside: 17.0%. We are maintaining our BUY call on the counter given the huge upside potential from its newly revised TP to reflect a higher coal price assumption. The investment theme for KKGI is its robust production growth profile as well as strong balance sheet. Currently, the.

Reiterating our Buy call, TP: IDR10,450, potential upside: 14.2% We are reiterating our Buy recommendation on HRUM while revising upwards our target price to incorporate a higher coal price assumption. We are raising our FY2011f-12f earnings forecasts by 9%-27% on adjusting our ASP assumptions. Our end-2011 DCF target price is IDR10,450, based on 17.4x-10.8x 2011f-12f.

Overweight on the sector We initiate coverage on the coal sector with a positive view reinforced by the strong earnings growth momentum, exciting demand-supply dynamics and Indonesia’s strategic position in the global seaborne coal market. The coal companies under our coverage are projected to deliver earnings growth of 67% – 46% in the 2011-2012 period,.