Posted by asean_investor > 2013-10-01 08:42 | Report Abuse

PT Bukit Asam (Persero) Tbk (PTBA) is an Indonesia-based coal mining company. Its scope of operation includes general surveying, exploration, excavation and processing;the Company also engagesin coal briquette production and has three production units located in Tanjung Enim, Gresik and Natar. In addition, PTBA offers logistical, support and consulting services related to the coal mining industry. • PTBA still offers attractive short-term growth in comparison with other Indonesian coal miners. The company is expected to increase production at a CAGR of 16% over 2012-16. • The PT KA rail expansion project is on track and will increase rail-transport capacity to 18.5mt by 2013(an impressive 21% YOY growth) and to 22.7mt from 2014 onwards from 15.6mt in 2012. • The company is currently building more than 2GW of mine-mouth power plants, which could consume as much as 15mt of coal, saving transportation costs and providing captive demand. The cost saving will add IDR 2337/share or 14% to the current share price. • PTBA is a defensive investment and will continue to outperform its peers in the current coal price environment, given its superior production, higher margins and stronger balance sheet.TheCompany is expected to generate better than industry EBITDA margins of 27% in 2013 because of low strip ratio and cost effective rail transport vis-avis its peers. See more: http://www.asean-investor.com/bukit-asam/