Sakari Resources ( former Straits Asia )

Re: Straits Asia Resources

Postby winston » Fri Oct 09, 2009 7:16 pm

Not vested. From DBS:-

Infrastructure problem at Jembayan

Straits Asia Resources (SAR) announced that after several days of continuous rain, there has been a significant erosion along the Mahakam River foreshore at the end of the new load out facility at Straits Asia’s Jembayan mine.

As a consequence, there has been a failure of the foundation structure under this facility. The extent and impact of this failure on the future operation of the new load out facility is currently being investigated. However, it is clear that no further loading will be possible from this facility at least for some time.

Jembayan operates 2 load out trains at the mine: the original facility with a nominal annual capacity of 5.5 million tonnes; and the new facility that was recently commissioned and has been building up capacity as part of an overall mine expansion plan.

Based on an initial assessment, the original load out facility does not appear to be affected by this event. All other mining activities at Jembayan continue to function
normally and all reasonable steps are being undertaken to mitigate the impact of this event.

Recommendation

The exact impact of this event cannot be determined at the moment. However, with the original load out facility still in operation, we believe the sales volume loss will be minimal. Presently, we maintain our estimate that Jembayan mine will produce 7mn tons of coal for 2009, and as of 1H09, sales volume from Jembayan totaled 2.9mn tons.

As such, we retain our BUY call on the counter with TP of S$2.91 implying 14.4x FY10F PE. Our target was derived using DCF valuation with assumed WACC of 10.7%.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 104239
Joined: Wed May 07, 2008 9:28 am

Re: Straits Asia Resources

Postby winston » Fri Oct 09, 2009 8:15 pm

Not vested. If it's an earthquake, I can understand. Rain ?

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

From OCBC:-

Jembayan facility damaged by rain.Continuous rain over the past several days has dealt Straits Asia Resources Ltd (SAR) a setback. Its new loading facilities at the Jembayan mine, which were just commissioned this year, have been damaged as heavy rainfall led to a failure of its foundation structure.

Although the extent and impact of the damage have yet to be ascertained, the group has warned that no further loading will be possible from this facility for at least some time. We expect production volume to be hurt as a consequence. The facilities are insured against business interruptions and we expect SAR to claim against these damages.

Production to take a hit. The failure of its new loading facilities will no doubt cast a shadow over SAR's expansion plans. The group had originally planned to raise Jembayan's output from 5.5m tonnes in FY08 to 7m tonnes in FY09 with the help of the enhanced capacity. With the destruction of its new facility, we have cut our projections to 5.8mt.

Meanwhile, SAR will seek alternatives to boost its output via access from neighbouring mines. We understand that the latest damage merely cripples the transportation of coal from mine to barge. Actual production at its mines remains on track.

Operations supported by original facilities. On a comforting note, SAR's original loading facilities have withstood the rain. Operations continue to run normally both at Jembayan's original facilities (SAR operates two loading facilities at Jembayan) and also at Sebuku.

Production from these facilities formed 83% of our original projections. The smooth running of their operations mitigates the negative impact brought on by the latest damages and also provides support to our projections.

Downgrade to HOLD with lower earnings forecast. SAR will provide further updates as they assess the impact of damages. We have cut our FY09 and FY10 earnings forecast by 18% and 15% respectively on lower production volumes. Accordingly, our DCF-based fair value estimate falls to S$2.20 from S$2.38.

Downside risk could arise from:-
(i) further disruptions to mining operations in the event of persistent rain and
(ii) translation losses from a weakening USD.

We downgrade SAR to HOLD.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 104239
Joined: Wed May 07, 2008 9:28 am

Re: Straits Asia Resources

Postby millionairemind » Fri Oct 30, 2009 8:22 pm

October 30, 2009, 8.16 pm (Singapore time)

Straits Asia Resources' Q3 net profit up 65%

By ANGELA TAN

Coal mining-related group Straits Asia Resources Limited on Friday reported net profit for the three months to end September grew 65 per cent to US$38.59 million.

Sales were up 18.5 per cent at US$200.12 million due largely to higher volumes and higher average selling price per tonne compared for Q3 2008.

It is the group's policy to pay 60% of profit after tax as dividends subject to the Group's capital and other requirements.

The directors have approved, in line with the policy, a third interim tax exempt cash dividend for FY2009 of 2.05 US cents per share, which represents approximately 60% of profit after tax for Q3 2009.
"If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong" - Bernard Baruch

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.
User avatar
millionairemind
Big Boss
 
Posts: 9605
Joined: Wed May 07, 2008 8:50 am
Location: The Matrix

Re: Straits Asia Resources

Postby winston » Tue Jan 19, 2010 12:35 pm

Not vested. From DBS:-

Coal prices are expected to stay firm in 1Q10, buoyed by extreme winters worldwide, and especially in Northern Europe and China.

Straits Asia Resources has 50% of its coal output still unpriced, and this unpriced portion is set to benefit from higher spot prices.

In additional, reserve upgrades at both of its mine - Sebuku Northern Leases and Jembayan, is expected
to be announced soon. Maintain BUY, TP unchanged at S$3.35. Technically, potential resistance is capped at $2.87.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 104239
Joined: Wed May 07, 2008 9:28 am

Re: Straits Asia Resources

Postby profittaker » Fri Jan 29, 2010 2:45 pm

CEC report outlines coal demand for 2010, analysts predict a large rise in coal prices

Chinese power plants are expected to face ever-thinning supplies of thermal coal and pressures from higher prices in 2010, according to China Electricity Council (CEC).

In its report on the outlook of national electricity supply and demand issued on January 26, the council predicted that China will see a demand of thermal coal of 1.6 billion tons in 2010. National consumption of electricity is expected to grow 9 percent year on year to 3,970 billion kilowatt hours.

Industry analysts forecasted that this year's coal contracts would involve a total of 1.7 billion tons of coal. Based on the contracts signed by the top five power generation companies, this year's contract coal price will rise 30 yuan to 50 yuan per ton from last year.

Yu Yaxin, industry analyst at Changjiang Securities, said a 50 yuan coal price rise would devour profits at most power plants. Since the electricity price in China is still under government control, power generation companies may confront a tough year for profit generation in 2010.

For the first eleven months of 2009, China's electricity sector reported a total profit of 89 billion yuan, with sales margins at only 3.16 percent. Power grids registered combined profits at 6.3 billion during the same period. The profits of power companies have been majorly imbalanced from a regional perspective, as power companies in Jiangsu, Zhejiang and Guangdong Provinces account for 74 percent of total industry profits.

Wang Zhixuan, secretary general of the CEC, suggested that electricity prices should be adjusted according to the coal price increases from the end of 2009, in order to alleviate pressure on power companies.

China adopted a coal-power price linkage mechanism in 2004, under which the government could adjust electricity prices when the variation of thermal coal prices exceeds 5 percent in six months. The mechanism is designed to boost the balance sheets of power companies, squeezed by rising costs. However, the implementation has since fallen short of industry expectations.

The CEC report also forecasted that China's investment in the power sector would reach 660 billion yuan in 2010.
learning to swim. Welcome to comment on my Options trading journal
User avatar
profittaker
Boss' Left Hand Person
 
Posts: 502
Joined: Mon Jan 04, 2010 10:26 am

Re: Straits Asia Resources

Postby millionairemind » Tue Feb 02, 2010 6:41 pm

February 2, 2010, 6.00 pm (Singapore time)

Straits Asia inks 5-yr coal supply deal

By CHEW XIANG

Straits Asia Resources on Tuesday said it inked a five-year contract to supply coal to Indian trading house Adani Group.

Two million tonnes a year of coal will be sourced from its Jembayan mine in East Kalimantan, Indonesia and sold to Adani at the public index floating price, Straits Asia said.

Adani Group is one of the largest business houses in India and expects to trade in excess of 26 million tonnes of coal this year.
"If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong" - Bernard Baruch

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.
User avatar
millionairemind
Big Boss
 
Posts: 9605
Joined: Wed May 07, 2008 8:50 am
Location: The Matrix

Re: Straits Asia Resources

Postby winston » Wed Feb 17, 2010 11:50 am

Not vested.

Singapore Hot Stocks-Straits Asia soars on commodities play

** STRAITS ASIA LEADS COMMODITIES STOCKS HIGHER

Shares of Singapore-listed coal miner Straits Asia Resources climbed as much as 7.2 percent to S$2.24, leading a rally of Singapore-listed commodity stocks.

At around 0338 GMT, Straits Asia was up 5.7 percent at S$2.21 with over 14 million shares changing hand. Noble Group rose as much as 4 percent while Olam gained as much as 4.3 percent.

Investors are betting on commodities, which they believe is the only sector where the supply and demand fundamentals point to higher prices, a local trader said.

"People are also running out of ideas and so they are going back to basics," he said.

The trader also said there was a delayed reaction to news that Straits Asia expects higher coal output this year.

Straits Asia's Chief Financial Officer Graeme Tivey told Reuters in an interview last week that the company aims to boost its coal output by 10 to 15 percent this year.

Source: Reuters
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 104239
Joined: Wed May 07, 2008 9:28 am

Re: Straits Asia Resources

Postby BlackCat » Wed Feb 17, 2010 8:30 pm

Failed H&S.... bullish? Or just desperate short covering?

straits asia 010217.jpg


Anyone else have any experience trading failed patterns?
You do not have the required permissions to view the files attached to this post.
I wait until there is money lying in the corner, and all I have to do is go over there and pick it up.
Jim Rogers
User avatar
BlackCat
Coolie
 
Posts: 116
Joined: Sun Sep 21, 2008 6:13 pm

Re: Straits Asia Resources

Postby kennynah » Wed Feb 17, 2010 8:35 pm

as soon as the H&S formation fails to follow through after it reverted to the necklne resistance at 2.10, then it has failed..in short, don't trade bearish positions anymore since the H&S formation is no longer valid...that's how i would read this chart...
Options Strategies & Discussions .(Trading Discipline : The Science of Constantly Acting on Knowledge Consistently - kennynah).Investment Strategies & Ideas

Image..................................................................<A fool gives full vent to his anger, but a wise man keeps himself under control-Proverbs 29:11>.................................................................Image
User avatar
kennynah
Lord of the Lew Lian
 
Posts: 18582
Joined: Wed May 07, 2008 2:00 am
Location: everywhere.. and nowhere..

Re: Straits Asia Resources

Postby BlackCat » Wed Feb 17, 2010 8:54 pm

Hmm... actually, I'm wondering if the failure could be bullish....if all the weak holders (and bears) have already been scared out of their positions.

Wondering if to go long...
User avatar
BlackCat
Coolie
 
Posts: 116
Joined: Sun Sep 21, 2008 6:13 pm

PreviousNext

Return to S to T

Who is online

Users browsing this forum: No registered users and 2 guests

cron