First Half Results: Vale Indonesia
Pretty much as predicted, nickel producer PT Vale Indonesia Tbk (INCO) reported significantly stronger financial performance in the second quarter of 2018. The Company booked net profit of US$22.55 million in the quarter, soared from US$6.84 million in the first quarter, thanks to higher average prices of nickel.
Those Continue to Expand: Ciputra Plantations
The benchmark October 2018 contracts of crude palm oil (CPO) ended lower by RM17 to RM2152 per ton on the Bursa Malaysia Derivatives Tuesday (Jul 24). Fears of trade war between USA and China have continued to pressure the commodity. Still, some companies continue to grow their plantation assets in Indonesia.
First Half Results: Bukit Asam
Pretty much as predicted, Bukit Asam (PTBA), coal producing subsidiary of INALUM, booked net profit of Rp2.58 trillion in the first half of 2018, jumped by 49% from the corresponding period last year, thanks to higher average price of thermal coal.
Antam’s New Partner in CGA Business
Aneka Tambang (ANTM), subsidiary of INALUM, has decided to take over shares in PT Indonesia CHemical Alumina (ICA), which operates chemical grade alumina (CGA) in Tayan, West Kalimantan, from its partner Showa Denko (Japan). The question, of course, whether Antam can turn this company around?
Promising EV Sales Data Supports Nickel
LME nickel price dropped significantly in the past few trading days. The last quoted price was US$13,310 per ton, fell from recent high of US$15,250 per ton in late June. Sales data of electric vehicles in USA, Europe, and, especially, China, however, will likely support medium-long term prospect of the commodity.
Anticipated Actions of Pertamina
Minister of state-owned enterprises Rini M Soemarno has on June 29, 2018 approved proposals from the board of directors of state oil and gas company Pertamina to conduct some corporate actions in a bid to maintain a healthy financial status. Some of them will open opportunities for strategic investors in both upstream and downstream sides of Pertamina’s business.
Support for Coal
In contrast to crude oil, which fell significantly in the past few trading days, thermal coal advanced further to US$116.13 per ton Tuesday (Jul 17), thanks to relatively strong demand from Asian countries and difficulties of miners in China to lift their output.
Major Gold Mines: Acquisitions to Watch (3)
Average gold price recorded in 2011 was US$1,681 per ounce. The price, however, steadily declined to US$1,410 in 2013 and US$1,243 this time around. The last quoted price is about the same with average price in the first half of 2014 recorded by one gold mine located in North Sulawesi province.
Major Gold Mines: Acquisitions to Watch (2)
Like gold, nickel has also dropped quite significantly from its recent peak. But, owner of one of the gold mines in Indonesia is said planning to leave the gold mine to focus in the development of nickel, anticipating growing demand from electric vehicles.
Major Gold Mines: Acquisitions to Watch (1)
Some major banks have reportedly expressed their interest to provide financing to INALUM, holding company for state miners, for the acquisition of PT Freeport Indonesia, which operates the largest gold and copper mine in Indonesia. Freeport, however, is only one of targets of acquisitions. We were informed about ongoing discussions about three other gold mines in the country.