Sakari Resources ( former Straits Asia )

Sakari Resources ( former Straits Asia )

Postby winston » Wed May 14, 2008 3:51 pm

From Credit Suisse:-

We are revising our 2008-10E earnings estimates lower by 3% on the assumption of higher oil price in our model.

● We have revised the oil price estimate in our model to US$90/bbl (previously US$72.50/bbl) in line with our Global Oil team’s estimate and is also closer to YTD average WTI spot of US$103.

● High oil present short term earnings risk, particularly in 2008, as bulk of SAR’s 2008 coal pricing has been locked-in. Our earnings
estimate change by about 1.7% for every US$10/bbl change in oil.

● Diesel/marine fuel oil cost exposure of Jembayan’s barging operations (approx. US$8/t or 25% of Jembayan’s unit cost) is not fully captured in our estimates and presents further downside risk.

● Higher oil price could also lead to higher coal price in the long run. Our base case estimates assume benchmark coal of US$100/t in
2009-10E, down from US$120/t in 08E. Our 2009-10E earnings change by 9% for every US$5/t change in benchmark assumption.
From Credit Suisse:-

● Lower EPS and stronger Singapore dollar lower our TP to S$4.50 (from S$4.70) based on 12x 09E EPS.

Maintain OUTPERFORM.

Profit estimates trimmed on higher fuel cost estimate
We are revising our 2008-10E earnings estimate for Straits Asia lower by approximately 3% on assumption of higher oil price in our model. Our oil price assumption is now US$90/bbl for the forecast period (previously US$72.50/bbl). Every US$10/bbl change in average oil price results in about 1.7% change in our earnings estimates (Fig 1).

In the short-term, particularly for 2008, rising oil price present a negative risk to our earnings estimates as majority of SAR’s 2008 coal price has been locked-in. Higher diesel cost Jembayan’s barging operations (approx. US$8/t of cost for that mine) is not fully captured in our model and presents further downside risk to our estimates.
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Re: Straits Asia Resources

Postby winston » Thu May 29, 2008 10:56 am

Singapore Hot Stocks-Straits Asia rises after share sale

SINGAPORE, May 29 (Reuters) - Coal miner Straits Asia Resources rose as much as 5.5 percent after its parent Straits Resources sold about 3.8 percent of its shares to institutional investors.

Straits Asia hit an intraday high of S$3.82 with over 40 million shares traded -- the most heavily traded counter so far.

Straits Resources CEO Milan Jerkovic told Reuters on Thursday that the 41.15 million shares were sold over the last two days to unidentified institutional investors.

"The plan is to make Straits Asia Resources an internationally held coal firm," Jerkovic said.

Australia-listed Straits Resources said in a statement to the Australia stock exchange that it will hold a 47.1 percent stake in Straits Asia Resources following the sale, down from 50.9 percent, and will use the proceeds for working capital and to reduce its debt.

Straits Resources had announced in April that it will split into two units, separating its coal and other assets to improve growth prospects, with Straits Asia Resources holding the coal assets while Straits Resources will hold the remainder.
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Re: Straits Asia Resources

Postby Blackjack » Tue Jul 22, 2008 8:30 pm

Not vested

WSJ posted an article on Straits Asia Resources today.

Summary:
1) Demerger with Perth-based miner Straits Resources will allow it to become a pure coal play with ambitious expansion plans.
2) Coal prices are expected to continue to rise due to high demand.
3) Opportunity for Straits Asia to widen its footprint by acquiring 2 coal projects from Straits Resources: one in Madagascar and one in Brunei
4) Trading at lower valuation than its Indonesia competitors, Bumi Resources and Tambang Batubara Bukit Asam.
5) Biggest risk for Straits Asia is high fuel prices.
6) Maquarie TP $5.10; OCBC TP $4.80; Credit Suisse TP $4.10.
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Re: Straits Asia Resources

Postby winston » Thu Jul 24, 2008 7:42 pm

Not vested.

OCBC keeps target price of $4.80
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Re: Straits Asia Resources

Postby winston » Thu Aug 14, 2008 2:13 pm

Not vested.

INTERVIEW-Straits Resources: seeks acquisitions for coal unit

PERTH, Aug 14 (Reuters) - Australian miner Straits Resources Ltd plans to grow its coal unit through acquisitions, and was targetting deals worth between A$1-A$2 billion ($877 million to $1.75 billion) in Australia.

Straits Resources, which owns 47 percent of Singapore-listed coal miner Straits Asia , said in April it was splitting its coal and metals businesses into two to improve growth prospects.

"That's the only size that is relevant," Straits Resources Chief Executive Milan Jerkovic told Reuters in an interview on Thursday.

"You only do a corporate transaction of this size once every couple of years. So when you go ahead, you have to make sure it's a meaningful acquisition, especially since this is a consolidation phase in the industry," he said.

Jerkovic said Straits Resources was eyeing several Australian coal firms that are already in production and it has already begun talks with some of them.

"We are looking for companies that are more mature, either they are producing or ramping up production. We're looking for something that is meaningful globally so it has to be in the 5-10 million tonne production space," he said.

The plans include getting a dual listing for Straits Asia in Australia to make it easier for local mining investors to trade in the stock.
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Re: Straits Asia Resources

Postby winston » Thu Dec 04, 2008 8:22 am

Australia's Strait Resources to review stake holding

Trading will never be the same.SYDNEY, Dec 4 (Reuters) - Australian miner Straits Resources Ltd (SRL.AX: Quote, Profile, Research, Stock Buzz) will conduct a strategic review of its 47.1 percent stake in Straits Asia Resources Ltd (STRL.SI: Quote, Profile, Research, Stock Buzz), the company said in a statement on Thursday.

Strait Resources has received a number of unsolicited expressions of interest for its stake in Straits Asia, the company said.
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Re: Straits Asia Resources

Postby durio » Thu Dec 04, 2008 2:11 pm

interesting .. soros & buffett have buying up these dirty fuels lately
http://www.istockanalyst.com/article/vi ... 36992.html
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Re: Straits Asia Resources

Postby winston » Wed Dec 17, 2008 9:06 am

STRAITS ASIA RESOURCES - Credit Suisse cut its investor rating for shares of Straits Asia Resources to "underperform" from "neutral" and lowered the firm's target price to S$0.80 from S$1.20, citing increased regulatory and operating risks.
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Re: Straits Asia Resources

Postby millionairemind » Fri Dec 19, 2008 8:30 am

December 19, 2008, 8.00 am (Singapore time)

Straits Asia says no adverse impact from Indonesia law

SINGAPORE - Singapore-listed coal miner Straits Asia Resources on Friday responded to concerns about Indonesia's new mining law, saying the rules would not hurt its operations.

'There is not expected to be any materially adverse impact on the company's operations under the new mining law, including with regard to royalties, mining area, divestment or the now mandated priority use of local contractors,' it said in a statement to the stock exchange.

Credit Suisse cut its rating on Straits Asia to 'underperform' from 'neutral' on Wednesday, citing increased regulatory and operating risks due to the new law that could result in the Singapore firm paying higher royalties or taxes.

The new mining law 'can potentially require all foreign investors (including Straits Asia) to partially divest their Indonesian mines,' the Swiss bank added. -- REUTERS
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Re: Straits Asia Resources

Postby winston » Tue Jan 13, 2009 7:19 am

Straits Asia Resources: Unfazed by new mining law

Straits Asia Resources Ltd (SAR) has assured us that it will not suffer any adverse effects from Indonesia's new mining law. It has cleared all regulatory reviews so far and remains in good shape. We expect the group to post robust earnings growth in the next few quarters supported by stronger coal prices locked in during the commodity boom in FY08, on top of higher production volumes.

For its 4Q08, we are forecasting a tripling of net profit to US$30m and a final dividend of approximately 1.5 US cents, translating to a yield of 2.4%. The bulk of its FY09 output has already been priced, negating the effect of short term fluctuations in energy prices and offering
strong order book visibility.

We maintain our BUY rating on the stock, and our fair value estimate remains at S$1.35.
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