Bahana Securities Bumi seeks acquisition nationally and overseas

BUMI Resources (BUMI-BUY-IDR2,325-TP:IDR3,200) share price fell 9.7% on Monday because of news on possible cancellation of its Newmont acquisition and also because of Finance Director of BUMI Eddie J. Soebari hs been name as suspect in tax evasion. However, the share price remained unchanged yesterday because BUMI said in a conference in Singapore that it seeks acquisitions nationally and overseas. It also
said that it expects that coal price to gain from current level of USD95/ton to USD100/ton by the end of the year. It further added that it expects double digit sales growth this year because of higher price and production, which is inline with our forecast of 17.8% y-y growth in revenues. It expects production to reach 65m tons which is also inline with our expectation of 65.6m tons. For long term growth, BUMI expects to increase coal production to 100m tons in the next three years.