Nov 29, 2010

Resource eyeing 3.48 mio tons sales

Thermal coal mining company PT Resource Alam Indonesia Tbk is eyeing 3.48 million tons of coal sales in 2011, a 63% increase from estimated 2.13 million tons in 2010.
Resource Alam's President Director Pintarso Adijanto said the company expects average selling price (ASP) for its coal at least the same with 2010's ASP at US$48 per ton.
The company is planning to produce 3.55 million tons next year.
"We estimated to produce 2.22 million tons coal by the end of 2010 and 2.13 million tons sales. In the next 3-4 years, we target 6 million tons production," he said in a public expose today.
 As of September 2010, Resource Alam produced 1.57 million tons and posted 1.47 million tons sales.
In a notes, CIMB Securities estimated Resources Alam to book Rp160 billion net profit in 2010 and Rp250 billion in 2011, reflecting P/E of 12.8x and 8.2x for 2010 and 2011, respectively (P/E coal sector of 22x for 2010 and 12x for 2011).
By the end of 2010, Resource Alam mined coals from Simpang Pasir block of 145,374 tons, Gunung Pinang of 331,146 tons, Bayur of 25,000 tons, Purwajaya subblock of 750,962 tons, Tegal Anyar subblock of 551,524 tons, and Tanjung Barokah of 423,919 tons.
Resource Alam also gained a contract to supply 500,000 tons of coal to PT Perusahaan Listrik Negara (PLN) to generate electricity for a year.
Pintarso said that the contract was signed after the agreement of supplying 120,000 tons of coal PLN was signed in September. The contract is valid for four months untuk end of this year. “However, I don’t remember the coal prices agreed in both contracts,” he said. 

Disclosure: No position at the stock mentioned above.  

Print This Article

No comments: