Coal Producers in Q3: Resources Alam
PT Resources Alam Indonesia (KKGI) Tbk, a small coal producer, is among the best performing stocks this year. It already gained 300% year-to-date as investors anticipated improvements in the bottomline of coal producers following price hike in recent months.
Gas Price Cut: Tone Down Your Expectations!
President Joko Widodo has signed Regulation No. 40/2016 few months with a view of cutting gas price effective from January 1st, 2016. The regulation, however, yet to be implemented for several reasons, which might be rooted in the existing policy design and impacts to the State Budget’s revenue side.
Rally of Palm OIl & Stocks
Shares of plantation companies ended mostly higher grounds in the region Monday (Oct 24) to tracking the rally of crude palm oil in both physical and futures market. Astra Agro Lestari (AALI) and London Sumatra (LSIP) led with 4.97% and 3.73% gain respectively. Sustainability?
Coal Rally & Stocks
Price of thermal coal has gained 27.7% to US$91.3 per ton, according to tradingeconomics.com, a platform from World Bank. Coal trading platform globalCOAL, meanwhile, recorded Australian thermal coal of US$100 per ton for November shipment, the first time since 2012.
Jonan & Masela Block
President Jokowi has on Thursday (Oct 20) given clear instructions to newly appointed energy and mineral resources minister Ignasius Jonan about the development of Masela Block in Maluku province. The President asked Jonan to speed up development of the block, which has been delayed for years due to policy changes and other issues.
Medco Energi: Long Way to Go
Shares of Medco Energi (MEDC), which recently acquired gold and copper miner PT Newmont Nusa Tenggara, closed higher by 1.91% to Rp1335 Thursday (Oct 20). At this price, MEDC only has market cap of Rp4.45 trillion or US$342 million, not even half of its equity.
Metals & Steel Industry
Steel is among the best performing product with almost 50% gain in the past 12 months or so. This contributed to rally in iron ore prices, which advanced almost 5% this month and 11.3% since October 2015. Tin, zinc, and lead also followed with double digit gains in the period, but copper lost ground.
Restriction for Investments in Nickel (and other Mineral) Smelters
Compared to other minerals (iron, bauxite, and copper), nickel has attracted lots of investments in smelting facilities in the past few years. Consistency in implementing nickel ore export ban and crackdown by the new government in the Philippines for environmental concerns might benefit Indonesia in the long run, especially if metal prices recover.
Signs of Recovery in Commodities Market
BHP Billiton produced 7 million tons of thermal coal in the quarter ended Sept 30, 2016, down 4% from the corresponding quarter last year, but grew 9% from the previous quarter. The Company, considered the largest mining company in the world, sees early signs of recovery in commodities market.
Aneka Tambang: Ironies…
State miner Aneka Tambang (ANTM) has on Thursday, Oct 13, signed memorandum of understanding with PT Bank ICBC Indonesia regarding US$1.5 billion financing cooperation. The financing may consist short-term loans, working capital, and long-term loan facilities to support ANTM’s investments, acquisitions, new plants, and distribution network.