Q&A with Adaro Energy
Adaro Energy (ADRO) is among the best performers on IDX with 115% gain year-to-date. Investors were bet on further recovery of coal market following production cuts in China, Indonesia, and the United States. Unlike other players, ADRO used the low price environment to proceed with expansion programs in power generation and metallurgical coal.
Q&A with Astra Agro Lestari
Astra Agro Lestari (AALI) lost 34% its value from recent high due to persistent weakness in the palm oil market. AALI, one of the largest CPO producers in the region, reported 12.2% decline in sales revenue and 18.6% fall in operating profit in the first half. Will second half of the year be better? Will government’s moratorium for new palm oil planting help? Plans to develop more downstream products?
Coal Price: Bottoming Out?
Reference price of Indonesian thermal coal for August 2016 is set at US$58.37 per ton for CV 6322 Kcal/Kg GAR, 1.3% lower than August 2015, but 10% above July 2016. The commodity has gained 14% since May 2016, prompting some to believe in a bottoming out. Really?
First Half Results & Outlook: Coal Miners
Recent rally in thermal coal prices contributed to gains of some coal producers listed on Indonesia Stock Exchange (IDX). Some of them have gained more than 100% from their recent lows even though pressures on coal market might still be around for quite sometime.
Q&A with Aneka Tambang CFO on Alumina and Ferronickel Projects
Price of minerals are still way below last year’s average, despite recent rallies. Shares of mining companies, including Aneka Tambang, however, have gained significantly from their respective lows. We attended public expose of Aneka Tambang (ANTM) on Monday where we and other participants asked Aneka Tambang chief financial officer Dimas Wikan Pramudhito about chemical grade alumina (CGA) Tayan, FeNi Haltim project, partnership with Ferrostaal and the smelter grade alumina (SGA) project with INALUM.
United Malacca Acquires More Indonesian Assets
Malaysian company United Malacca Berhad has decided to expand operations in Indonesia. The Company has just signed memorandum of understanding (MoU) with Indonesian businessmen to acquire a company holding concession right to develop about 59,920 hectares of land within an industrial plantation area located in Central Sulawesi.
First Half Results: Plantation
Weak price of palm oil hit most plantation companies in the region. Astra Agro Lestari (AALI) did report 78% jump in net profit to Rp792 billion, but mostly due to non-operating benefits. Its sales revenue and operating profit dropped 12% and 18.6% respectively in the first half.
Nickel Market: Output Weighs Further Rally?
Nickel price ended at US$10,655 per ton in London Metal Exchange (LME) Friday, July 22, the highest level since late October 2015 due to broad sentiment on metals and relatively lower stockpile. Nickel has gained nearly 40% from its bottom early this year.
Coal Market Review: First Half
Ministry of energy and mineral resources provided interesting data about coal market in the first half of 2016, even though comprehensive data, especially production from companies operating under the mining business permit (IUP), has yet to be collected in full.
Mining Player to Watch: Blackspace Resources
Weak price of metals, coking coal, and thermal coal created opportunities for some to acquire assets in Indonesia. We have seen HKSE-listed Agritrade Resources Ltd and SGX-listed Geo Energy Resources in acquiring coal assets in Kalimantan, betting on future recovery and relatively low production costs even if others see bleak outlook.