Metals: Price & Shares
Shares of Freeport McMoRan lost 6.4% in New York Friday (Nov 6) to tracking downfall of gold and copper, while Glencore Plc dropped 4.7% earlier in London on broad market correction of metals. They’re still above their lows in late August, but China continues to weigh the recovery.
Merger & Acquisition Updates
French-based animal nutrition company InVivo NSA has acquired PT Welgro Feedmill Indonesia, layer feed producer in Indonesia, for undisclosed considerations. PT Sawit Sumbermas Sarana (SSMS) Tbk, meanwhile, has acquired 100% shares of PT Menteng Kencana Mas for US$35 million.
Newmont Leaving Indonesia?
Newmont Mining Limited used to have interest in mining assets in North Sulawesi, North Sumatra, and West Nusa Tenggara (NTB). As of today, the only asset left is Batu Hijau gold-copper mine in Sumbawa Island, NTB. Will Newmont Mining eventually leave Indonesia?
Bakrie Sumatra Plantations: What’s Left?
Bakrie Sumatra Plantations (UNSP) booked net loss of Rp779.6 billion in nine months of 2015, skyrocketed from Rp128.3 billion in the corresponding period of 2014. This cut further its net equity to Rp2.98 trillion, while liabilities grew further to Rp14.28 trillion. More assets have been sold to reduce mounts of debts, so what’s left for other lenders and stakeholders?
Indonesian Groups behind Martabe Acquisition
G-Resources Group Limited has requested suspension of trading of its shares on the Stock Exchange of Hong Kong effective this morning pending the release of an announcement. That means the proposed management buyout (MBO) of G-Resources Ltd, which controls Martabe gold mine in North Sumatra, Indonesia, is almost done. Who are Indonesian business people behind the acquisition?
Bright Spots in Third Quarter (6): Delta Dunia
Coal mining contractor Delta Dunia Makmur (DOID) booked net loss of US$4.82 million in nine months of 2015 against net profit of US$11.33 million in the corresponding period of 2014. The Company, parent of BUMA, however, reported stronger performance in the third quarter.
Acquisition Target: South Natuna Sea Block B
Chevron reportedly plans to sell its interest in the South Natuna Sea Block B production sharing contract (PSC), offshore Natuna, Riau Islands. Chevron currently holds 25% participating interest in the block operated by fellow American company ConocoPhillips.
EMR Capital Closer to Control Martabe Gold
Gold price retreated to US$1133 per ounce in New York last night, lower than the average realized price of Freeport McMoRan in the first nine months of 2015 at US$1149 per ounce. The commodity is also way below its peak (US$1600/ounce), but this doesn’t prevent EMR Capital Ltd to complete the acquisition of Martabe gold, one of the largest gold mines in Indonesia.
Felda Deal & BWPT’s Performance
PT Eagle High Plantations Tbk (BWPT) posted net loss of Rp94 billion in the third quarter of 2015 on falling prices of crude palm oil (CPO) and squeezed operating margins. BWPT’s performance worsened in the quarter as compared to the first half. Will this affecting closing of Felda Global Venture’s acquisition of BWPT shares?
Bright Spots in Third Quarter (3): Adaro Energy
Adaro Energy (ADRO), the second largest coal producer in Indonesia, booked net profit of US$180 million in nine months of 2015, down 18.2% from the corresponding period of 2014, but significantly better than first half because of stronger performance in third quarter.