Freeport Indonesia: How about Termination?
Shares of Freeport McMoRan (FCX) ended significantly lower by 5.83% in New York Friday (Feb 3rd) with significant trading volume. Other than tracking copper, which retreated by 2.47% Friday, investors were concerned about status of Grasbger gold-copper mine in Papua, Indonesia. Freeport and the Government are still disputing various issues surrounding status of mining rights, mandatory development of copper smelter, and export duty for copper concentrates.
Coal Journal No. 5/2017: Output to Watch
Thermal coal was traded at US$82.7 per ton on Thursday (Feb 2nd) to represent 57.8% gain year-on-year. The commodity has been hovering above US$80 since October 2016 as crude oil was also relatively stable above US$50 per barrel. Going forward, market participants need to watch closely policy changes in China and US plus difficulties to control output in Indonesia.
ANTM: 2016 Performance & Outlook
Aneka Tambang (ANTM) recorded sales revenue of Rp9.11 trillion (unaudited) last year, down 13.6% from 2015 despite higher production volume of nickel ores, ferronickel, bauxite, and alumina. Going forward, other than impacts of recent government policies allowing export of low-grade nickel and bauxite, dynamics in the alumina, coal, gold-silver would define ANTM’s short-term outlook.
Metals Journal No. 1/2017
The government will likely issue temporary special mining business permit (IUPK) to PT Freeport Indonesia, paving the way for resumption of copper concentrate export. Looks like that the government doesn’t want to bear associated risks, especially local economies and employment, from further delay of export.
Revisiting Samin Tan’s BORN
Average price of hard coking coal recorded by BHP Billiton for six months ended December 31, 2016 was US$179 per ton, skyrocketed 118% from the corresponding period in 2015. Weak coking coal, meanwhile, jumped 82% to US$122 per ton in the same period. How about Indonesia’s coking coal producer Borneo Lumbung Energi (BORN), controlled by Samin Tan?
Highland & Toba Bara Sejahtera
Singapore-registered investment company Highland Strategic Holding Pte Ltd has on November 9, 2016 signed conditional sale and purchase agreement (CSPA) with PT Toba Sejahtra, a company owned by the family of Luhut Binsar Pandjaitan (coordinating minister for the economy), regarding 1.24 billion shares or 61.79% of the total issued & paid-up share capital of coal producer PT Toba Bara Sejahtera (TOBA) Tbk.
Freeport & Regulatory Changes: Standstill?
“For each month of delay in obtaining approval to export, PT-FI’s share of production is projected to be reduced by approximately 70 million pounds of copper and 100 thousand ounces of gold,” Freeport McMoRan, owner of PT Freeport Indonesia (PT-FI), said in its full year 2016 report regarding its future operations in Indonesia following regulatory changes issued two weeks ago. We’re talking about US$188 million of sales revenues from copper and US$120 million of revenues from gold or a combined US$308 million at the current price.
COAL JOURNAL No.4/2017: Output to Watch
Ministry of energy and mineral resources identified roughly half of 6,000 mining business permits (IUPs) plan to start commercial production of coal this year. Central government, unfortunately, won’t be able to control their output, because the authority is in the hands of regional governments. Higher average price of thermal coal encourages those IUPs to move from exploration to production stage.
Revisiting The Bakries (1)
Bakrie-related shares dominated Wednesday’s trading as 1.3 billion shares of Bumi Resources were exchanged hands, while 1.7 billion shares of Bumi Resources Minerals (BRMS) were traded. Almost 3 billion shares of Darma Henwa (DEWA) were traded as the stock closed higher by 22%. There were also 2.2 billion shares of Bakrie Sumatra Plantations exchanged hands as the stock jumped 19%.
Commodities & Indonesian Economy
Brent crude oil retreated 0.29% to US$55.3 per barrel Monday (Jan 22), but the commodity gained 81.12% year-on-year. Natural rubber inched up 0.07% to 287 yen/Kg in Tokyo, but the commodity already gained 78% year-on-year. Thermal coal also inched up 0.34% to US$83.8, but gained 60% year-on-year.