Kingsrose & Natarang Mining
Kingsrose Mining Limited, ASX-listed company controlling PT Natarang Mining, which produces gold and silver in Sumatra Island, was traded as high as A$1.77 in April 2011. Today, the stock is traded at around A$0.1 only. At the current price, Kingsrose’s market capitalization is only around A$43.5 million.
Thailand Silently Dominate Indonesian Energy-Mining
Most people talk about competition between US, Europe, China, Japan, and South Korea in Indonesia’s resources industry and infrastructure business. The truth is that Thailand is a major player here, not China, when it comes to thermal coal as key feedstock for electricity generation.
Felda-Rajawali Deal on BWPT, Finally?
Shares of Eagle High Plantations (BWPT) surged 8.76% Friday (Dec 23) as investors responded positively a fresh deal between Felda Global Ventures Holding and Rajawali Corpora (owned by tycoon Peter Sondah). Around 476 million shares were exchanged hands on IDX. Shares of Felda Global Ventures, on the other hand, collapsed 5.56% on KL Stock Exchange.
Mixed Coal Data
Shares of coal producers were hammered worldwide Thursday (Dec 22) despite reports about 69% jump of China’s import of thermal coal last month. Shenhua and China Coal Energy Co Ltd lost 3.1% and 2.43% respectively in Hong Kong, while Whitehaven Coal dropped 2.56% in Sydney. In Jakarta, Adaro Energy inched up 0.6%, but others were mostly in red.
Palm Oil Corrections
The benchmark March 2017 contracts of crude palm oil (CPO) dropped RM44 to RM3070 per ton Thursday (Dec 22), while contracts beyond April 2017 were settled below RM3000 per ton respectively. The Commodity has dropped significantly from its recent peak as some traders anticipate higher production next year.
Short-Term Support for Coal
Indonesia generated export revenues of US$1.55 billion from mineral fuel (coal) last month, an increase of 10% from October, thanks to over 20% increase in average reference price of thermal coal. Rally in international market triggered the government to set an even higher reference price of US$101.7 per ton for December. The rally ended early this month, but hermal coal recovered in the past few trading days to record 5.5% gain to US$87.55 per ton, based on over-the-counter (OTC) and contract for difference (CFD) financial instruments quoted by tradingeconomics.com.
The Alarming Oil & Gas Balance
Indonesia suffered US$5.22 billion of deficit in oil and gas trading for the first 11 months of 2016. It declined 5.8% from the corresponding period of 2015, but mostly a function of falling average prices of oil and gas. Volume-wise, it’s pretty alarming, especially if the country can’t figure out ways to push through major pending projects.
Rubber Lifts Plantation Sector
Rally of natural rubber price continues. In Tokyo this morning, the commodity advanced 2.2% to 278.3 yen per Kg. While this is still way below its historical high (526.4 yen/Kg in February 2011), the commodity has gained nearly 100% from its low in early January.
Q&A with Jonathan Handojo on Indoferro
PT Indoferro, member of The Growth Steel Group (GSG), is preparing an initial public offering (IPO). We might see the offering in second quarter of 2017, depending on progress of its second nickel pig iron (NPI) smelter and market dynamics going forward. We have recently interviewed Jonathan Handojo, business development of GSG, about Indoferro, pioneer of NPIs in Indonesia.
Oil Rally, Coal, & Palm OIl
Oil deal lifted energy equities worldwide Monday. Oil and gas producers Santos Ltd and Woodside Petroleum gained 5.12% and 2.91% in Sydney, while KrisEnergy jumped 10% in Singapore. PetroChina inched up 0.55% in Hong Kong despite broad-market correction of China equities that day. In Europe, BP gained 2.3% in morning trading, while Total inched up 0.33%.