Kategori: Mining

KKGI reported FY2010 earnings of IDR166bn, surging by a whopping 418% y-o-y, which was in line with our estimate. Strong topline growth KKGI’s revenue climbed 138% y-o-y to IDR969bn, driven by higher sales volume as well as average sales prices (ASP). 2010 coal sales volume totaled 2.2m tonnes, up 133% from 0.9m tonnes in 2009..

Supported by ample coal reserves and in-place coal processing and handling infrastructure, Resource Alam Indonesia (KKGI) is set to continuously ramp up coal production in the coming years. The company has internal estimated coal reserves of 73m tonnes, which translate into a life-of-mine of 20 years. Production for 2011 is slated to reach 3.5m tonnes.

Supported by adequate coal reserves and in-place coal processing and handling infrastructure, Resource Alam Indonesia (KKGI) is set to continuously ramping up its coal production volume in coming years. The company has an internal estimate coal reserves of 73m tonnes that translates to life-of-mine of 20 years. Production for 2011 is slated to reach 3.6m.

Buy initiation, target price Rp9,900 Our Buy recommendation is premised on HRUM’s i) robust production growth, ii) huge untapped coal resources potential, iii) strong balance sheet, and iv) attractive coal market structure. Our end-2011 DCF target price is Rp9,900, which implies 13x 2012F earnings. Its share price catalysts may include: i) More reserves and resources.

Adaro Leader The Pack. Buy initiation; target price Rp2,900. Our Buy recommendation hinges upon ADRO’s, First, strong exposure to the domestic coal market, Second, proven record for production growth, Third, sizeable coal reserves, and Fourth, financing capability for expansion. As well as, our end-2011 DCF target price is Rp2,900, which implies 16.3x 2012F earnings. Furthermore,.