Jumat, 30 Oktober 2009

BUMI Resources

Pls read it carefully. Overall, 3Q09 operating performance is looking good and better than 2Q09.

Current share weakness provides buying opportunity as bumi has dropped sharply by 30% from highest level this year. We maintain BUY call with TP Rp3625/shr.,

The Maruwai coking coal asset is interesting and Bumi has expressed specific interest in it.

Bumi is conducting a limited audit review in Q309 and, hence, will publish its financials for Jan/Sep 09 by 30 Nov '09.

A preview, however, of the operating metrics for Q309, however, indicate :-

A) record breaking Q309 production (Jul/Sep 09) which annualises to a 70 m tpa rate - never ever achieved before.
B) matched by record Q309 sales. (Jul/Sep09)annualising to 62 m tpa rate.
C) average fob price (FY09 est) in early $60's/ton
D) comfortable inventory which augurs well for Q409 sales.

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