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Ha..ha...if this whole conveyor belt washed away, how bad do you think it will be? Heard of dumper trucks reversing up a ramp and unload? Like it is used to be done? haha....City folks only see computers and pretty girls, lost a screw quickly shout sell sell sell.. haha
Recommendation DBSV (8 Oct 09) TP $2.91
Infrastructure problem at Jembayan
Straits Asia Resources (SAR) announced that after several days of continuous rain, there has been a significant erosion along the Mahakam River foreshore at the end of the new load out facility at Straits Asia’s Jembayan mine.
As a consequence, there has been a failure of the foundation structure under this facility. The extent and impact of this failure on the future operation of the new load out facility is currently being investigated.
However, it is clear that no further loading will be possible from this facility at least for some time. Jembayan operates 2 load out trains at the mine: the original facility with a nominal annual capacity of 5.5 million tonnes; and the new facility that was recently commissioned and has been building up capacity as part of an overall mine expansion plan. Based on an initial assessment, the original load out facility does not appear to be affected by this event. All other mining activities at Jembayan continue to function normally and all reasonable steps are being undertaken to mitigate the impact of this event.
Presently, we maintain our estimate that Jembayan mine will produce 7mn tons of coal for 2009, and as of 1H09, sales volume from Jembayan totaled 2.9mn tons. As such, we retain our BUY call on the counter with TP of S$2.91 implying 14.4x FY10F PE. Our target was derived using DCF valuation with assumed WACC of 10.7%
The exact impact of this event cannot be determined at the moment. However, with the original load out facility still in operation, we believe the sales volume loss will be minimal.ASH NOTESMy guess is that it is not going to be too much of a problem, coal still coming out from the mine, they can be loaded onto ship using mobile loader, cranes, maybe a bit slower, in remote Indonesia labour is close to negligible, they just need to ship in another conveyor. I think this is a short term interruption, as long as the ship can dock the coal can be poured into the ship. I am holding on, until strong current wash me out...
nah...unlikely will fluctuate much DOWNwards now...closing 5pm soon..may b next wk? hee..
i think $1.85 will be nice :D
SnakeGreen888 ( Date: 09-Oct-2009 16:37) Posted:
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nickyng ( Date: 09-Oct-2009 16:24) Posted:
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nickyng ( Date: 09-Oct-2009 16:14) Posted:
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ROI25per ( Date: 09-Oct-2009 16:17) Posted:
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How bad is this? Are there feasible solutions within the next few weeks? Any expert here in coal mining?
Wondering is this a good time to buy the company's shares?
hmm...New loader facility damage by continuous rain....WHAT IF the remainder Old loader facility also give way(as it is OLD and aging?) should the torrential rain cont'd to pour on it ?!?! OOPS !! NO OUTPUT altogether...this mine can close down liao!! :P ...the possibility is QUITE REAL hor ? :D
...vested folks better pray hard ! :D
DJ MARKET TALK: OCBC Downgrades Straits Asia Resources To Hold
[Dow Jones] STOCK CALL: OCBC Investment Research downgrades Straits Asia Resources (AJ1.SG) to Hold from Buy, cuts target price to S$2.20 from S$2.38 after lowering FY09-10 earnings forecasts by 18%, 15% respectively to assume lower production volumes. Changes follow Indonesia-based coal miner's disclosure of damage at its new loading facility at Jembayan mine due to heavy rainfall; "the failure of its new loading facilities will no doubt cast a shadow over SAR's expansion plans." Notes group's initial plan to raise output from Jembayan to 7 million tons in FY09 from 5.5 million tons in FY08. Stock closed +1.4% at S$2.21 yesterday. (FKH)
Contact us in Singapore. 65 64154 150;
MarketTalk@dowjones.com
ozone2002 ( Date: 09-Oct-2009 09:47) Posted:
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maxcty ( Date: 08-Oct-2009 11:06) Posted:
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Announcement by Straits Asia yesterday :
Infrastructure at Jembayan Mine
Singapore 8 October 2009. Straits Asia Resources Limited (Straits Asia, SGX: SAR) advises
that after several days of continuous rain, there has been a significant erosion along the
Mahakam River foreshore at the end of the new load out facility at Straits Asia’s Jembayan
mine. As a consequence there has been a failure of the foundation structure under this facility.
The extent and impact of this failure on the future operation of the new load out facility is
currently being investigated. However, it is clear that no further loading will be possible from
this facility at least for some time.
Jembayan operates 2 load out trains at the mine: the original facility with a nominal annual
capacity of 5.5 million tonnes; and the new facility that was recently commissioned and has
been building up capacity as part of an overall mine expansion plan.
Based on an initial assessment, the original load out facility does not appear to be affected by
this event. All other mining activities at Jembayan continue to function normally and all
reasonable steps are being undertaken to mitigate the impact of this event.
Straits Asia will keep the market advised of further developments.
By Order of the Board
Straits Asia Resources Limited