DMG & Partners has downgraded Singapore-listed coal miner Straits Asia Resources (STRL.SI) to “sell” from”neutral” but maintained its target price of $2.49.
DMG has cut its rating for Straits Asia Resources as it said it believes the firm’s share price has over-run following the issuance for a coal mining license in Indonesia and the recent surge in coal prices.
“We think coal prices will fall as coal output recovery in Queensland is expected to take place as soon as three months,” said DMG in a report.
However, DMG raised its 2011 earnings per share estimate by 6% to reflect a higher quarter of higher coal prices.
Shares of Straits Asia Resources have risen more than 15% since the end of last year to close at $2.88 on Wednesday.
After some refllection decided to sell out some of position as this does not look like going up easily from here n after some days those in contra position will have to get out. I think it will be higher than this later this year but for the moment, might as well sell some becos probablity of pullback after such a jump seems possible. It is however still holding very well today.
Sydney, Jan 12, 2011 (ABN Newswire) - Arc Exploration Limited (ASX:ARX)
reported further highly encouraging gold results from an ongoing
programme of trenching at its Baku Hill Prospect at Bima Project in
Indonesia. The best result is 12m at 24.8 g/t gold that includes 3m at
64 g/t gold. Results so far at Baku Hill indicate high grade veins
within a coherent gold-mineralised zone that is at least 300m long and
approximately 100m wide, highlighting the bulk tonnage gold potential of
the area.
Globe Metals & Mining Limited (ASX:GBE)
said that a limited rock-chip sampling program has identified numerous
additional areas of heavy rare earth mineralisation at the Mount Muambe
Fluorite Project in Tete Province, Mozambique. Many of the samples show
high HREO grades and ratios of the sought after elements dysprosium
(Dy2O3) and europium (Eu2O3). Results include: a peak value of 1.22%
TREO, a peak value of 426ppm Dy2O3 and a peak value of 198ppm Eu2O3. The
company is planning a significant REO exploration program planned for
Mount Muambe in 2011.
Energy Ventures Limited (ASX:EVE)
has completed a new resource estimate for the Aurora uranium deposit
located in southeast Oregon, USA. The Aurora resource estimate has more
than doubled, now standing at 37.9 Mlb U3O8. The new resource is based
on validated historical drilling, assay and radiometric logging data
obtained by Energy Ventures. A diamond drilling programme is currently
in progress to further validate the geology and resource model for the
deposit and to obtain samples for metallurgical testing.
Straits Resources Limited (ASX:SRL)
said that Straits Asia Resources Limited (SGX:SAR) has been issued the
Principle Licence on the Northern Leases at Sebuku in Singapore. The
Northern Leases are a key part of Straits Asia's long-term strategy for
mining its concessions at Sebuku. Straits Asia expects to commence work
in the Northern Leases relatively quickly after the Borrow and Use
Licence is issued, which will lead to the long-awaited ramp up of
production from Sebuku mine.
0009 GMT [Dow Jones] Straits Asia Resources (AJ1.SG) may rise as news the coal producer has been issued the Principle Licence for the Northern Leases area of its Sebuku mine helps visibility on the company's production ramp up plans; SAR says the licence is the precursor to the Borrow and Use Licence. OCBC analyst Lee Wen Ching says "this is definitely a positive development for SAR, it is part of their expansion plan and this is very much welcome." She has a Buy rating and S$2.89 fair value on the stock. She adds, the news is "better late than never" as the permit had previously been expected by end-2010. In addition to today's positive update, Lee notes SAR is a key beneficiary of rising thermal coal prices. Shares close +1.9% at S$2.64; year-to-date high of S$2.74 may cap gains. (matthew.allen@dowjones.com)
So seems that SAR effectively got or will get their Northern Expansion lease. This should allow production to increase barring bad weather or the unexpected.
Once again, anyone care to comment on the points I have raised?
Tks.
citrus ( Date: 11-Jan-2011 23:47) Posted:
Thanks for all your contributions to this thread.
I am also invested in SAR, abt 100+lots not too much lower from here.
For me the impt points to note are:
1) PTT wants to buy up demerged SRL(Straits Resources) shares in aus, based on valuation of SAR at SGD2.79, and thus if SAR price here exceeds this before relevent acceptance, then SRL shlders may complain they r being forced to sell SRL shares to PTT too cheap, n be unwilling to sell, eg Merrick. Thus there is a strong reason for PTT to discourage any shareprice rise in SAR until they have enough acceptances. This may DAMPEN the SAR shareprice.
2)However, present shlders of SRL may ARBITRAGE by buying SAR at prices lower than 2.79 here, while giving their SRL shares to PTT at valuation 2.79 in aus. Of course this can only be done when PTT is obliged to accept SRL shares. This would SUPPORT the SAR shareprice.
3)Assuming PTT gets the SRL shares, then if they ever(not likely IMO) want to privatise SAR, they have to pay at least 2.79. This is not a concern to me, but when PTT took a 60% stake in the entity that owns abt 45% of SAR(bought from SRL near subprime bottom in 2009), there was some concern PTT might try to take SAR private.
4)If PTT is willing to pay cash for SRL shares valuing SAR at 2.79, this is a clear vote of confidence in the propects n shareprice of SAR by PTT. Already I m optimistic abt demand for thermal coal in asia(also prices have risen significantly), SAR hopes to expand their ops with the relevent lease supposed to be approved soon, n after such bad wet weather, failure of loadout earlier this year, etc, I expect this year to be better for SAR.
5)As we all know PTT is trying to obtain the remaining 40% of the entity that owns abt 45% of SAR, think it is called Asia Pacific Mining or something, and while they have a controlling stake of 60% in this entity alrdy, they want the remaining 40% and thus full ownership of the 45% SAR shares.
6)Thermal coal is growing in investor perception as an attractive asset. The coming listing of Bumi on LSE by Nat Rothschild thru Vallar would seem to be an indication of this.
7)Ah, the flood....supply from aus prob affected...will it help SAR in indo?
On Friday, StraitsAsia re-test the minor resistance at $2.70 and closed at $2.68 with LOW volume of 4.14 million shares traded.
A black candle stick with upper/lower shadow indicates that the
rally has lost it momentum and investors are hesitant to buy higher.
Both RSI & MACD are bullish as RSI continue to trend upwards.
Important Resistance of StraitsAsia: $2.70
Immediate Support of StraitsAsia: $2.59
Currently prices are well above 20/50/100/200 days MA.
There has been selling pressure on commodities stocks on Friday as investor took profit on recent strong gains.
However the selling pressure for Straits Asia is......................READ MORE
Personnel comment: SG trader is very good in chart as i can see haha
I do some updates based from his chart. As sgtrader has mentioned: more upside will be expected if $2.70 is broken. Unlucky it did not break despite trying for past 4 days. Especially on 6/Jan, it tried to break with high volume but failed with candle stick of long upper shadow and this is a bearish signal.
Straitasia has ALREADY formed a lower low.....if it failed to break this resistance, it will be forming a lower high as well --> Another bearish signal.
Interesting move. Congrats to all holding SAR. May all bros huat big big with SAR.
For shortterm positions n contra it is prob a sell today, but for longterm positions, I wud still take it s a hold. I generally don't trade my longterm stock positions like an index, where everytime it stretches up I let go n buy back on the dip. Sometimes these big jumps r due to coming corporate developments that r stock specific n they dont swing back down into a dip like an index does. I will give chance to the unknown n see how it goes.
I am also invested in SAR, abt 100+lots not too much lower from here.
For me the impt points to note are:
1) PTT wants to buy up demerged SRL(Straits Resources) shares in aus, based on valuation of SAR at SGD2.79, and thus if SAR price here exceeds this before relevent acceptance, then SRL shlders may complain they r being forced to sell SRL shares to PTT too cheap, n be unwilling to sell, eg Merrick. Thus there is a strong reason for PTT to discourage any shareprice rise in SAR until they have enough acceptances. This may DAMPEN the SAR shareprice.
2)However, present shlders of SRL may ARBITRAGE by buying SAR at prices lower than 2.79 here, while giving their SRL shares to PTT at valuation 2.79 in aus. Of course this can only be done when PTT is obliged to accept SRL shares. This would SUPPORT the SAR shareprice.
3)Assuming PTT gets the SRL shares, then if they ever(not likely IMO) want to privatise SAR, they have to pay at least 2.79. This is not a concern to me, but when PTT took a 60% stake in the entity that owns abt 45% of SAR(bought from SRL near subprime bottom in 2009), there was some concern PTT might try to take SAR private.
4)If PTT is willing to pay cash for SRL shares valuing SAR at 2.79, this is a clear vote of confidence in the propects n shareprice of SAR by PTT. Already I m optimistic abt demand for thermal coal in asia(also prices have risen significantly), SAR hopes to expand their ops with the relevent lease supposed to be approved soon, n after such bad wet weather, failure of loadout earlier this year, etc, I expect this year to be better for SAR.
5)As we all know PTT is trying to obtain the remaining 40% of the entity that owns abt 45% of SAR, think it is called Asia Pacific Mining or something, and while they have a controlling stake of 60% in this entity alrdy, they want the remaining 40% and thus full ownership of the 45% SAR shares.
6)Thermal coal is growing in investor perception as an attractive asset. The coming listing of Bumi on LSE by Nat Rothschild thru Vallar would seem to be an indication of this.
7)Ah, the flood....supply from aus prob affected...will it help SAR in indo?
Post Reply
461-480 of 2995
ASX:ARX)
reported further highly encouraging gold results from an ongoing
programme of trenching at its Baku Hill Prospect at Bima Project in
Indonesia. The best result is 12m at 24.8 g/t gold that includes 3m at
64 g/t gold. Results so far at Baku Hill indicate high grade veins
within a coherent gold-mineralised zone that is at least 300m long and
approximately 100m wide, highlighting the bulk tonnage gold potential of
the area.
