Bumi Resources Minerals successfully de-leverages balance sheet

PT Bumi Resources Minerals Tbk (“BRMS” or “the
Company”) reports today that its parent company, PT Bumi
Resources Tbk (“BUMI”) is converting its Rp 4.95 trillion
(approximately US$ 546 million) mandatory convertible
note (“MCN”) into equity ownership in BRMS at the
conversion price of Rp 670 / share. Consequently, BRMS
issues 7.4 billion new shares in the name of BUMI for the
MCN settlement.
Kenneth Farrell (CEO of BRMS) said,” In December 2010, we
used part of the initial public offerings proceed to repay the
US$ 148 million loan facility from the Bright Ventures Pte
Ltd. Therefore, the US$ 546 million MCN settlement will

United Tractors - Strong Komatsu sales continue in February

Strong February heavy equipment sales

Komatsu sales in February remained stellar reaching c. 690 units (tentative),

+74% YoY, which showed that the record high monthly sales in January

totaling 731 units was not just simply due to carry-over sales from last year.

We attributed this condition to strong heavy equipment demand following

buoyant coal and palm oil prices. United Tractors (UNTR) heavy equipment

sales in 2M11 has exceeded our monthly sales forecast of 565 units translating

to 6,500 units (UNTR: 6,000 units; +11% YoY), +20% YoY, in 2011F.

 

Supply availability would be limiting sales factor

We believe the challenge for delivering higher sales would come from the

supply availability as we have heard about supply difficulty that hit Hitachi

Stock Research Today: Perusahaan Gas Negara Tbk (PGAS) downgrade

We downgrades Perusahaan Gas Negara Tbl (PGAS) to UPF (from OPF) as the stock goes ex-growth for next two years. We cut our TP from Rp4,650 to Rp3,700.

 

The current weakness in the stock price is because of the partial diversion of Conoco Phillips volume from PGAS to Chevron. PGas’s current contracted amount from Conoco Phillips is 375mmscfd, but Conoco Phillips is delivering only

Company Profile : Borneo Lumbung Energy & Mineral

The only coking coal play in Indonesia
PT Borneo Lumbung Energi (BORN) is a producer of hard coking coal. It
operates one coal mine Asmin Koalindo Tuhup in Central Kalimantan and one
heavy equipment rental company Borneo Mining Services (solely for internal
usage). It is based in Indonesia and has been listed on the Jakarta Stock
Exchange since November 2010. Based on the current market cap of US$2.8bn,
BORN is currently the sixth largest coal company in Indonesia, but it is the only
one that produces coking coal. The company is 75%-owned by Samin Tan and
Surjadinata Sumantri – founders of Renaissance Capital Asia, a financial advisory
and private equity firm. Free float is 25%. BORN’s production capacity was 3.6mn
t by end-2010, and it plans to ramp up capacity to 5mn t by end-2011.
Operations done by Coal Contract of Work (CCOW)

Based on the third generation of CCOW, BORN has the right to mine for coal in a

Gudang Garam - Back to basics ( 2011 Outlook)

• Maintain Outperform, albeit with lower target price of Rp55,000 (from Rp63,000), following our 4-7% earnings downgrade for FY10-12 as well as changes to our index target (to 14x from 16x). Our target price remains set at 20% above our market target. Our recent meetings with the company confirm that its fundamentals are intact. The company had raised selling prices for its machine-rolled cigarettes (MRC) by 1.3% in Jan 11 (4% excise tax in FY11). Nonetheless, given lower volume growth, we have reduced our volume-growth expectation for 2010 (from 4% to 2.5%) while maintaining margin estimates. Catalysts could include margin expansion, better-than-expected dividends as well as subsiding inflation fears, we believe.

• Second year of consolidation. Gudang Garam will be reinforcing its marketing efforts this year, together with