Jun 3, 2010

Bayan to allocate US$60 mio capex

One of Indonesia's coal miner PT Bayan Resources Tbk (BYAN) sets 2010's capital expenditure of US$50 million-US$60 million.
According to Bayan's public expose material, the company will use the capex to expand coal jetty, roll out 5 km conveyor, enlarge stockpilling, buy tug boat, and maintenance and facilities infrastructure improvement.
How about Bayan's average selling price (ASP) in 2010?
The company, controlled by Dato' Low Tuck Kwong, estimates that 2010's ASP will stand at around US$65-US$69 per metric ton, depending on benchmark price.
Coal benchmark price in 2010 is estimated to reach a higher level compared to last year, which is in line with rebound coal demand in the global market. Bayan's ASP forecast this year is pursuant to average coal FOB at US$78 per metric ton.
How about sales?
Bayan calculates that coal sales volume will increase 14 million ton-16 million ton or a minimum 17% growth compared to 2009. Demand coming from India, Taiwan, and Malaysia are calculated to increase.
The company's average cash cost in 2010 is around US$55-US$60 per metric ton. Production volume of Bayan in 2010 is calculated to increase from 11.4 million metric tons in 2009 to 13.8 million metric tons-Rp15.1 million metric tons.
Gunung Bayan Pratamavoal Block 1's production is set to increase to 0.4 million metric tons-0.5 million metric tons. Gunungbayan Pratamacoal Block II seems to decrease from 4 million metric tons to 3.5 million metric tons.
PT Teguh Sinarabadi's production will be stagnant at 1 million metric tons-1.1 million metric tons. PT Firman Ketau Perkasa is also stagnant at 0.3 million metric tons-0.4 million metric tons. PT Perkasa Inakakerta's production forecast this year will be 2.8 million metric tons-3 million metric tons from last year's position of 2 million metric tons.
PT Fajar Sakti Prima is set to boost production to 1.3 million metric tons-1.6 million metric tons  in 2010 and PT Wahana Baratama Mining will elevate production to 4.5 million metric tons-5 million metric tons in 2010 from 2.9 million metric tons in 2009.

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