Straits Asia (AJ1.SG) is up 7.6% at $2.84 on news of its Northern Leases Principle License, with investors likely anticipating a possible earnings upgrades for FY11 as some analysts had pushed back contribution assumptions from increased Sebuku production due to delays in obtaining the license.
Posts Tagged ‘Straits’
Straits Asia surges on Indonesia coal licence
January 12th, 2011 |
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Shares of Singapore-listed coal miner Straits Asia Resources (STRL.SI) jumped as much as 9.8% to a 41-month high after it got a license, which would lead to new coal mining rights in Indonesia.
At 0119 GMT, Straits Asia shares were up 6.4% at S$2.81, with over 9.1 million shares changing hands.
Straits Asia Resources gets principle licence to mine Sebuku’s Northern Leases
January 11th, 2011 |
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Straits Asia Resources says Indonesia’s Ministry of Forestry has issued a Principle Licence (Izin Prinsip) for the Northern Leases at Sebuku in South Kalimantan.
The Izin Prinsip is the precursor to the Izin Pinjam Pakai (Borrow and Use Licence) and gives the company the rights to extract coal provided certain final conditions are met.
Straits Asia Resources lowered to Fair Value by OCBC
January 11th, 2011 |
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OCBC lowers Straits Asia Resources (AJ1.SG) fair value estimate to $2.89 from $3.13; it says while SAR is a beneficiary of strengthening coal prices, “we caution against over exuberance as oil prices have also been climbing, and this could crimp the group’s profit margins given that fuel costs account for 30%-35% of its production costs.”
Shares up on US production data, coal shortage lifts Straits Asia
January 4th, 2011 |
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Singapore shares rose 0.6% by the midday break on Tuesday, following the regional stock market trend as investors took heart from strong U.S. manufacturing data reported overnight.
Indonesia-based coal miner Straits Asia Resources (STRL.SI) was amongst the outperformers, as concerns that a shortage of coal due to heavy flooding in Australia could lift prices and benefit miners outside of Australia, traders said.
Straits Asia extends decline; Mine delay worries
December 10th, 2010 |
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Straits Asia Resources (AJ1.SG) is off 1.6% at $2.48, extending decline from $2.80 December high, down 11.4% since then, hurt by investors’ concern over delays to obtaining permit for Northern Leases area of its Sebuku mine.
Straits Asia flat; DMG tips production delay
December 8th, 2010 |
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Straits Asia Resources (AJ1.SG) flat at $2.55, after last week’s run-up to a $2.80 52-week high. The recent weakness was triggered partly by concerns the Indonesia-based coal miner may again face delays in getting regulatory approval to work on a new area in its Sebuku mine.
Straits Asia Resources upgraded to ‘buy’ by OCBC
December 2nd, 2010 |
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OCBC Investment Research in a Nov 30 research report says: “The group’s YTD core net profit has fallen 48% y-o-y to US$57.7 million despite a 3% growth in revenue to US$529.3 million, with lower coal prices being the key culprit for margin compression. We are forecasting a 15.6ppt drop in FY2010 gross profit margin to 24.5%, but expect this trend to reverse in FY2011 as coal prices recover.
Singapore stocks down on Ireland woes, Straits Asia bucks trend
November 23rd, 2010 |
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Singapore shares were 1.1% lower by the midday break on Tuesday in line with other Asian bourses as worries over Ireland’s debt woes and a possible contagion effect in the euro zone kept investors at
bay.
By the break, the Straits Times Index (STI) <.FTSTI> was down 35.15 points at 3,155.77. Total market volume was 840 million shares.
"The euro zone uncertainties may cause the U.S. dollar to strengthen and we’re seeing some weakness in the overall equity markets. The market has been doing quite well, not only in Singapore but in the region, and this (news) is a chance for people to take some money off the table especially towards the year-end," said Andrew Chow, an analyst at UOB Kay Hian.
He added that the STI may be lacking positive catalysts going into the next year, as earnings visibility remains unclear.
The STI is expected to remain in the negative region this afternoon, but will find support at 3,150 points, traders said.
Shares of property developers like Keppel Land (KLAN.SI) extended Monday’s losses, as investors continued to trim their positions after Hong Kong announced fresh measures to cool its property sector.
Keppel Land fell 1.5% to $4.67 by midday, while rival City Developments slid 2.2% to $12.30.
However, Singapore-listed coal miner Straits Asia Resources (STRL.SI) outperformed the index and rose as much as 1.2% to 42.56 after Credit Suisse upgraded the stock, traders said.
Credit Suisse upgraded Straits Asia to “outperform” from “neutral” and raised its target price to $3.10 from $2.20, citing potential upside versus its peers if it is granted a permit for its “Northern Lease” coal mine in Indonesia in the next three months.
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Straits Asia rises on broker upgrade
November 23rd, 2010 |
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Shares of Singapore-listed coal miner Straits Asia Resources <STRL.SI> rose as much as 3% on Tuesday after Credit Suisse upgraded the stock to "outperform", traders said.
At 9:31 a.m., Straits Asia shares were up 1.6% and trading at $2.57 with over 2.9 million shares changing hands.
Credit Suisse upgraded Straits Asia to "outperform" from "neutral" and raised its target price to S$3.10 from S$2.20, citing potential upside versus its peers if it is granted a permit for its "Northern Lease" coal mine in Indonesia in the next three months.
"If Straits Asia can start to mine in the Northern Lease, we expect its volume growth over 2010-13 to surpass its peers at annual (average growth rate) of 19%," said Credit Suisse in a report.
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Straits Asia up on commodities rally
November 19th, 2010 |
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Shares of Singapore-listed coal miner Straits Asia Resources (STRL.SI) rose as much as 4.5% on Friday, spurred by a rally in commodities prices and recent M&A activity in Indonesia’s coal sector.
At 0154 GMT, Straits Asia shares were up 3.3% at $2.50 with over 2.6 million shares changing hands.
PTT unit to pay $703.5m for Straits Coal: Update
November 11th, 2010 |
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PTT Pcl, Thailand’s largest energy company, said it agreed to buy the coal assets of Australia’s Straits Resources for A$544.1 million ($703.5 million).
PTT will pay A$1.72 a share for Straits’ 40% stake in PTT Asia Pacific Mining Pty Ltd. following a planned demerger of Straits’ coal and metal assets, it said in a statement today. The deal will give PTT full ownership of PTT Asia Pacific.
Charts tip more upside for Straits Asia – OCBC
November 9th, 2010 |
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Straits Asia Resources (AJ1.SG) +1.6% at $2.54, extending gains after yesterday’s 6.4% rise in good volume of 20 million shares.
OCBC in technical note, says break of key resistance suggests further upside, uptrend channel intact; “Straits Asia could see more upside ahead after rebounding off the 50-DMA and lower boundary of its 2-year uptrend channel recently; this was later followed by a strong bullish break above the $2.37 key resistance on heavy volume yesterday.”
Straits Asia Resources rated ‘neutral’ by DMG
November 4th, 2010 |
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DMG & Partners Securities in a Nov 3 research report says: “Straits Asia Resources (SAR) reported 3Q10 net profit of US$23.2 million (flat q-o-q), which was 15% below our expectations. This was due mainly to higher-than-expected costs from both Jembayan and Sebuku.
Nomura reaffirms Straits Asia at Buy; laggard play
November 3rd, 2010 |
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Nomura reaffirms Straits Asia Resources (AJ1.SG) at Buy with $2.80 target price after 3Q profit after tax at US$23 million, topping house’s estimate by 10%, mostly on lower tax rate (31%).
Tips around US$80 million ($103.1 million)PAT for FY10; says stock attractively valued, laggard play, has underperformed peers by 30% year-to-date; notes strong volumes at Jembayan mine, while costs, tax have come down.
Straits Asia Resources rated ‘hold’ by DBS
October 11th, 2010 |
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DBS Vickers Securities in an Oct 8 research report says: “July and August saw exceptionally heavy rainfall in Kalimantan. As a result, work at Sebuku’s Tanah Putih pit has been affected, and pit preparation works delayed into FY2011.
Sept 13: Genting Singapore, Straits Trading, ComfortDelGro, Ziwo
September 13th, 2010 |
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Singapore shares may rise on Monday as Wall Street cheered positive data from the US. and China, easing previous fears about the pace of the global economic recovery.
Singapore’s benchmark Straits Times Index <.FTSTI> rose 0.36% on Thursday to 3,022.28 points. Here are some stocks and factors to watch:
Genting Singapore Plc (GENS SP): Singapore’s two casino-resorts yesterday stopped running free bus services from the island’s downtown and the suburbs to comply with an order by the city-state’s regulator. The buses will continue running to the airport and certain hotels, the newspaper reported. Genting, which owns of one of the two casino resorts, rose 0.6% to $1.83.
Straits Asia flat; Reserve upgrade below view: Goldman Sachs
August 20th, 2010 |
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Straits Asia Resources (AJ1.SG) last flat at $2.13, off $2.16 earlier high, failing to build on initial momentum fuelled by news of Indonesia-based coal miner’s increased coal reserves at its Jembayan mine, says Dow Jones.
While latest coal reserves +21% from end December, Goldman Sachs, which has Sell call with $1.90 target, says increase smaller than expected given substantial rise in drilling activity.
Straits Asia Resources target raised to $2.08 by OCBC
August 18th, 2010 |
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OCBC Investment Research lifts Straits Asia Resources (AJ1.SG) target price to $2.08 from $1.85 to assume higher average selling prices from FY11 on strong demand, says Dow Jones.
But keeps Hold call: “While SAR’s outlook is gradually improving, lingering risks including wet weather as well as potential delays in obtaining the Sebuku permits remain.”
Notes, Indonesia-based coal miner expects to receive permits by end-2010 to carry out work in Sebuku region. Shares +1.0% at $2.06.
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