Nov 19, 2010

Borneo pockets 2 mio tons coal contract

Coking coal miner PT Asmin Koalindo Tuhup (AKT), wholly owned subsidiary of PT Borneo Lumbung Energi & Metal Tbk (BORN) has secured another 1 million coal sales supply from General Nice Group for 1 year.
AKT has signed into agreement to supply coking coal to General Group on October 13 2010, 9 days after AKT signed 1 million coal sales supply from Zhonglian Resources Company for 1 year. The contract with General Group has been effective on October 1 2010.
Assuming the coking coal price at US$200 per ton, AKT has secured US$400 million from the coal sales supply contracts
Loan
PT Borneo Mining Services (BMS), wholly owned subsidiary of Borneo Energi on November 8 2010 has also drawn Rp152.79 billion as part of loan facility provided by PT Bank CIMB Niaga Tbk.
AKT also entered into revolving loan agreement worth US$50 million with First Gulf Bank PJSC, Singapore branch with annual interest rate of 6.25%.
Borneo has increased the IPO size to 4.42 billion new shares or 25% of its enlarge capital at Rp1,170 per share, enabling the company to grab Rp5.17 trillion.
Post IPO, Borneo's controlling shareholder PT Republik Energi & Metal will own 75% stake in Borneo Energi and public shareholders hold 25% stake.
Borneo intends to use 35% stake of the proceed or Rp1.75 trillion to jack up coal production and capital expenditure.
About 50% of the proceed or Rp2.5 trillion will be used to refinance some or all debt facilities to creditors and 13% or Rp650 billion will be utilized to develop coal reserves and resources.

Disclosure: No position at the stock mentioned above.

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