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Senin, 18 April 2011

Adaro Adaro Energy: Invest US$100mn to IndoMet Coal (ADRO, 2,275, Buy, TP: Rp2,800) - Mandiri

􀂄 Adaro Energy invests US$100mn to IndoMet Coal, which 25% stake owned by PT Alam Tri Abadi and 75% stake owned by BHP Biliton. This amount is not including Adaro’s total FY11F capex of US$625mn.
􀂄 Adaro plan to start developing its central Kalimantan coal project in Maruwai this year. Total thermal and coking coal reserves is estimated around 774Mt.
􀂄 Based on our recent update to company, 1Q11 coal production is likely lower than 1Q10 since seasonally it usually produces less coal in first quarter (1Q10 was exceptionally high due to drier weather) But Adaro has confirmed that the weather is already back to normal and still maintain its FY11F target of 46-48Mt
􀂄 Currently we have Buy rating on the stock. ADRO is traded at 14.5xPER11F.

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