Revisiting Soeryadjaya-Provident’s Copper-Gold Projects
Shares of Finders Resources Ltd on ASX surged by 17.24% this morning as investors were upbeat with performance of copper cathode plant in the Wetar Island, Maluku province for the quarter ended December 31, 2016. Finders claimed full production of the smelter in the quarter with significantly low cash operating cost.
ONWJ Block & The Bakries
The government has decided to grant 90% interest in Offshore North West Java (ONWJ) oil and gas block to Pertamina, while the balance of 10% is granted to local governments of West Java province. How about Bakrie Group, which previously held 36.72% interest in the block?
ONWJ Block: Lessons Learnt
The government has finally granted Offshore North West Java (ONWJ) to state oil and gas company Pertamina (90%) and local governments of West Java province (10%). ONWJ also becomes the first major oil and gas block to implement gross split scheme. Lessons learnt?
Masela Block & Petrochemical Industry
So, the government of Indonesia and investors of Masela Block (offshore Maluku) have agreed to boost natural gas production to 10.5 million tons per annum. They, however, have yet to agree on portion of gas processed into LNG and other, including petrochemicals. Looking at President Jokowi’s recent address about natural resources, the chance is big for petrochemicals.
Plantation Journal
The benchmark April 2017 contracts of crude palm oil advanced RM49 to RM3159 per ton Tuesday (Jan 17), while March contracts surged by RM54 to RM3197. Contracts for the remaining months of 2017 were settled around RM3000 per ton. Natural rubber, meanwhile, retreated to below 300 yen yesterday.
Revisiting Sawit Sumbermas
Palm oil producer Sawit Sumbermas (SSMS) has just released its Jan-Sep 2016 results, where the Company booked net profit of Rp287 billion, down 24.6% from the corresponding period of 2015 due to squeezed margins. SSMS, which has recently secured huge financing commitment from state bank, reported significantly stronger performance in the third quarter.
Acquisition Opportunities & Challenges from New Mining Regulations
Freeport McMoRan’s willingness to change its contract of work (COW) into special mining business permit (IUPK) creates bigger acquisition opportunity in the coming years. Newmont and Sumitomo Corp have earlier divested their shares in Batu Hijau gold-copper mine to domestic business groups.
Market on New Mining Regulations (3)
Freeport McMoRan has reportedly agreed to convert its contract of work (COW) into special mining business permit (IUPK), which paves the way for the resumption of copper concentrate export, easing off some concerns about economic, social, and political impacts of new mining regulations. PT Amman Mineral Nusa Tenggara, second largest copper producer, will likely follow suit.
Market on New Mining Regulations (2)
Nickel stopped falling Friday after significant correction earlier on Thursday as some market participants downplayed full impact of low-grade nickel ore export from Indonesia. Copper, meanwhile, advanced slightly as both Freeport Indonesia and Amman Mineral Nusa Tenggara were weighing their options to convert contract of works into special mining business permit (IUPK).
ANTM Overbought, INCO Oversold?
Shares of Aneka Tambang (ANTM) and Vale Indonesia (INCO) were traded heavily Friday (Jan 13) to respond new mining regulations issued by the government. ANTM ended higher by 6.36% with 249 million shares exchanged hands, while INCO crashed 15.93% with almost 139 million shares traded. Have investors overtly positive toward ANTM and negative toward Vale/INCO?