Mansek Adaro:targets production 80Mt by 2015 (ADRO,Rp2,050,Buy,TP: idr2,600)

ADRO targets coal production reach 80Mt by 2015,almost double than target production FY10 of 45-46Mt.To support the target,the company plans to build 68 Km length of landed conveyor belt in stages and also to build 2x30MW capacity of power plant located in mouth of the mining site. The conveyer belt is scheduled to be start built in earlier 2011 with initial capacity of 40Mt,and expected to contribute saving cost amounting to US$1.5/ton to production cost.In 1H10,ADRO produced 21.6Mt or 47%to FY10 target.ADRO trades at PER10F-11F of 16.5x and 12.2x,respectively, maintain Buy.