Hard Coking Coal: Hard Landing
Slowdown of manufacturing and steel industry has added more pressures to hard coking coal market. Benchmark price of Curragh (Australia)’s hard coking coal for July-September 2015 dropped 15% from the previous quarter.
Surprise from Gosowong Gold
Newcrest Mining Ltd, a gold and copper producer listed on Australia Stock Exchange (ASX), reported gold production of 122,103 ounces of gold from its Gosowong mine in Halmahera Island, North Maluku province in the quarter ended June 30, 2015.
Crude Steel Data & Commodities
It is a difficult year for commodities. No doubt. On Wednesday, World Steel Association released another depressing data for metals. June 2015 production of crude steel declined 2.4% from the same month last year.
The Future of Indonesian Palm Oil
Crude palm oil (CPO) hit its new low since early February at US$627 per ton (CIF) in Rotterdam last week. This would affect Indonesia’s revenues from the commodity, delaying further potentials for the State to collect export tax from the commodity. Still, Indonesian palm oil industry is still attractive because of the development of palm oil derivatives.
Impacts of Iran Deal for Indonesia
A deal between Iran and six major powers on nuclear issues might cap potential recovery of crude oil as the country will likely boost output. Without significant changes in supply-demand dynamics, this would continue to affect other commodities, including palm oil and thermal coal. Other than the broad market impacts, what are the specific implications for Indonesia?
Medco Energy: First Half Financials & Outlook
PT Medco Energi Internasional (MEDC) Tbk, controlled by the family of Arifin Panigoro and Japan’s trading house Mitsubishi Corp, is the first major company releasing financial results for the first half ended June 30, 2015. No surprises! Falling crude oil prices cut its operating profit by 61.8% while sales revenues dropped 22.4%.
Coal Journal No. 32/2015: Global Dynamics
Reference price of Indonesian thermal coal for July is set at US$59.16 per ton, declined slightly from last month, but dropped 18.34% from July 2014 as global dynamics continue to send negative sentiment towards the commodity.
Indonesian Gold, Silver & Copper
Indonesia’s export revenues dropped 11.9% to US$78.3 billion in the first half of 2015, but revenues from gold and silver jumped 32% to US$3.4 billion in the period. Revenues from Dr Copper also increased by 5.9% to US$946 million in the period.
Bumi Resources & The New Accounting Standard
PT Bumi Resources Tbk (BUMI), controlling shareholder in two of the largest coal producers in Indonesia, has just released its financial statement for the quarter ended March 31, 2015. Implementing the new accounting standard of PSAK 66, BUMI booked net loss of US$344.3 million in the quarter against profit of US$349.45 million in the corresponding period of 2014.
M&A in Resources Sector
Indonesian resources sector continues to attract investors, despite pressures on most commodities. SGX-listed Federal International (2000) Ltd, for example, has entered into an option agreement to acquire 51.3% shares of PT Petrosa Novomet Indonesia (PTPNI).