Sakari Resources ( former Straits Asia )

Re: Straits Asia Resources

Postby eauyong » Sun Mar 08, 2009 12:26 am

Business Times - 07 Mar 2009

8-10 firms still eyeing key stake in Straits Asia, says CEO By CHEW XIANG

BETWEEN eight and 10 companies are still interested in buying a key stake in Singapore-listed coal miner Straits Asia Resources, chief executive Richard Ong said yesterday.

Mr Ong said that discussions are ongoing, primarily over pricing. He did not reveal who the interested parties were, but said that they include companies from Singapore, Indonesia and Australia.

In December, Straits Asia's main shareholder, Australian mining company Straits Resources, said that it was undertaking a 'strategic review' of its 47 per cent stake after receiving unsolicited approaches from several companies.

The next month, Straits Asia's stock surged and the company was queried by the Singapore Exchange after Reuters said that commodity trader Noble Group and Indonesia's PT Indika Energy Tbk were among the companies interested. But reports later suggested that their interest was cooling due to concerns over Indonesia's new mining laws.

Mr Ong indicated that any deal would have to be at some premium to the current share price, which closed at 78.5 Singapore cents yesterday.

'It cannot be at the share price today, I definitely will not want to support,' he told reporters. He added that any new investor will also have to back the present management team.

Straits Asia's main assets are two coal mines in Kalimantan, Indonesian Borneo, which produced 8.6 million tonnes of coal last year, up from 3.4 million tonnes in 2007.

This, coupled with record coal prices during the year, propelled net profit fourfold, from US$28.6 million to US$124.4 million, as sales doubled to US$585.2 million from US$251 million.

Thermal coal hit a record US$200 a tonne in July last year but the price has slumped since, touching a 20-month low of just over US$62 a tonne this week.

But Mr Ong said that Straits Asia has forward-sold 7.3 million tonnes of this year's targeted production of 9.5 million tonnes at an average price of US$108 a tonne.

He said that the company aims to raise output to 20 million tonnes by 2012, through acquisitions and capacity expansion at existing mines.

Production at one of its mines, Sebuku, will fall a third, from 3.5 million tonnes last year to 2.2 million tonnes this year due to problems with a forestry permit, Mr Ong said, but added that 'there is no reason why' the authorities will not soon grant the necessary clearances.

Straits Asia is also in discussions to buy another mine in Kalimantan. 'We are not looking at greenfield, we are looking at a mine that is currently in production,' said Mr Ong. The deal could be finalised soon, and could add another two million tonnes to annual output.

Straits Asia has a US$170 million war chest to fund acquisitions and aims to spend US$70 million this year on capital expenditure, he said.

Source: Business Times Singapore
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Re: Straits Asia Resources

Postby Musicwhiz » Sun Mar 08, 2009 6:21 am

Management should just focus on running the biz well and stop talking about the share price !
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Re: Straits Asia Resources

Postby winston » Mon Mar 23, 2009 8:58 am

Not vested. If I want to buy a Coal company, I would buy those in China..

STRAITS ASIA RESOURCES - Coal miner Straits Asia Resources has requested for a trading halt after announcing that Thailand's PTT International may make a takeover bid for Straits Asia at S$0.807 per share, which is less than its last-traded price of S$0.845.

PTT's offer is subject to the Thai firm receiving approval from the Australian government to buy a 60 percent stake in a unit held by Australian miner Straits Resources Ltd that owns 47.1 percent of Straits Asia.

Source: Reuters
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Re: Straits Asia Resources

Postby winston » Mon Mar 23, 2009 9:17 am

So why are they selling ?

UPDATE 1-Straits to sell coal, salt asset stake to Thai PTT

(Adds asset details) PERTH/MELBOURNE, March 23 (Reuters) - Thailand's PTT International will buy part of Australian miner Straits Resources Ltd's coal and salt assets in a deal worth up to $335 million, the Thai firm said on Monday.

Under the agreement, PTT will buy about 60 percent of Straits Resources unit Straits Bulk & Industrial Pty Ltd, which holds a stake in Singapore-listed thermal coal miner Straits Asia Resources Ltd , as well as coal assets in Brunei and Madagascar.

The sale also includes part of Straits Resources stake in an Australian salt project, PTT said in a statement to the Singapore Stock Exchange.

The deal would mark PTT's first foray into coal business and second investment in Australia. It bought unlisted oil and gas explorer Coogee Resources for $170 million last December.

"The acquisition is consistent with PTT's business strategy and will enable PTT to diversify its resource base and income streams," the Thai firm said in a statement.

PTT said the total cash consideration of up to $335 million comprises an upfront payment of $220 million as well as a performance payment of up to $115 million, subject to reserve upgrades at the Sebuku coal mine in South Kalimantan, Indonesia owned by Straits Asia Resources.

Last year, Straits said it would conduct a review of the 47.1 percent stake in Straits Asia after receiving unsolicited expressions of interest. Straits Asia controls two Indonesian coal mines which have a production capacity of about 9 million tonnes of thermal coal.

Straits Asia, which posted over a 300 percent rise in both fourth quarter and 2008 net profits exports most of its output to power plants in Japan, Korea, Taiwan and India.

Analysts say Straits Asia is a prize for any suitor because it secured strong sales prices before the global economic slowdown caused commodity prices to plummet.

Shares in Straits and Straits Asia were placed on trading halts on Monday.
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Re: Straits Asia Resources

Postby millionairemind » Sat Jun 20, 2009 2:23 pm

Straits Asia Resources
Buy
DBS Group Research | June 19
Close: $1.75


UNDERPINNED by the recent increase in oil prices, we believe that the price of coal is set to follow suit as demand for coal remains strong. Our channel checks with major coal producers in Indonesia suggest that demand for coal is still robust, as the increase in output so far in 2009 has been absorbed by the market. Latest coal price at US$71.9 per tonne is 15 per cent higher than its lows back in March 2009.

Straits Asia Resources' (SAR) FY2009 earnings will remain strong, driven by improvement in sales volume (up 17 per cent y-o-y) and sales price (up 13 per cent y-o-y). SAR has sold and priced 6.5 million tonnes of its FY2009 coal deliveries at US$114/tonne, thus cementing our optimism that it will achieve a blended average sales price of US$78/tonne for FY2009.

SAR management is continuing its effort to boost production by enhancing its infrastructure capacity. The company aims to achieve a capacity of 20 million tonnes a year and currently the installed infrastructure can attain annual production of 19 million tonnes. Reiterate 'buy' with TP of $2.26.
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Disclaimer - The author may at times own some of the stocks mentioned in this forum. All discussions are NOT to be construed as buy/sell recommendations. Readers are advised to do their own research and analysis.
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Re: Straits Asia Resources

Postby winston » Tue Aug 18, 2009 11:42 am

Do you know why you are buying ?

=====================================================

Singapore Hot Stocks - Straits Asia Resources up 11.1 pct

SINGAPORE, Aug 18 (Reuters) - The benchmark Straits Times Index <.FTSTI> rose 0.59 percent higher as of 0224 GMT on Tuesday.

The following stock was on the move: ** STRAITS ASIA RESOURCES UP 11.1 PCT Shares in Singapore-listed Straits Asia Resources jumped up by as much as 11.1 percent to S$2.31 after a spate of bullish recommendations from stockbrokers.

Following news that the coal miner's bid to extend the boundaries of its coal mine in Indonesia has been approved, Merill Lynch initiated coverage of the stock with a "buy" rating and target price of S$2.80.

Macquarie reiterated its "outperform" recommendation and increased its price target for Straits Asia to S$3.00 from S$2.25.

"With the Sebuku (coal mine) extension granted, Straits Asia's rank will go up two notches to number 4 in terms of volume. Its margin too is as competitive as other Indonesian coal players," Merill Lynch said in a note, adding that the firm is its second-best pick in the Indonesian coal sector.
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Re: Straits Asia Resources

Postby Aspellian » Tue Aug 18, 2009 1:44 pm

winston wrote:Do you know why you are buying ?


Dear Winston,

What do you mean? Can you elaborate abit so that I can think deeper? (i am sincere to learn)

PROMISE, PASSION, PEACE, POWER, PURPOSE, PLAN, PATIENCE, PERSEVERANCE, PROTECTION
DELIGHT, DISCIPLINE, DILIGENT, DETERMINATION, DESIRE

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Re: Straits Asia Resources

Postby winston » Tue Aug 18, 2009 1:56 pm

Ha Ha ... just because a few brokers upgrade a stock, it does not mean that you should chase the stock. There must be a good reason to buy the stock and at a good safety of margin.

Do you have a good reason to buy ? Also, not too long ago, some foreign miners were having problems in Indonesia. Has the systemic risk being removed ?
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Re: Straits Asia Resources

Postby Aspellian » Tue Aug 18, 2009 1:59 pm

winston wrote:Ha Ha ... just because a few brokers upgrade a stock, it does not mean that you should chase the stock. There must be a good reason to buy the stock and at a good safety of margin.

Do you have a good reason to buy ? Also, not too long ago, some foreign miners were having problems in Indonesia. Has the systemic risk being removed ?


noted. thanks for your reply. :)

PROMISE, PASSION, PEACE, POWER, PURPOSE, PLAN, PATIENCE, PERSEVERANCE, PROTECTION
DELIGHT, DISCIPLINE, DILIGENT, DETERMINATION, DESIRE

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Re: Straits Asia Resources

Postby winston » Fri Oct 09, 2009 9:10 am

STRAITS ASIA RESOURCES - Straits Asia Resources said on Thursday the new coal loading facility at its Jembayan mine in Indonesia's East Kalimantan province has collapsed due to heavy rain.

UBS said it may cut its target price if disruptions last longer than 6 months.

Credit Suisse raised its target price to S$1.25 from S$0.90 as the brokerage priced in the benefit from its Sebuku boundary resolution by extending the reserve life of that mine at the increased production rate. However the brokerage house lowered its 2009 earnings estimates by 11-14 percent after the collapse of a coal loading facility at its Jembayan mine.

Source: Reuters
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