MAY 2013 - Kresna Securities

Monthly Bulletin
MAY 2013
METALS
Nickel price (US$/MT)
23,000
21,000
19,000
17,000
15,000
Jan-12
Apr-12
Jul-12
Source: Bloomberg, Kresna Research
Oct-12
Jan-13
Apr-13
Sector:
• Gold prices decline. Gold prices in London declined, along
with economic growth speculation of gold demand cutdown
as hedging instrument. Based on Bloomberg data, the
gold price has decreased by 5.5% this year. Goldman
Sachs has cut down the quarterly gold price from
US$1,615/ounce to US$1,530/ounce, while annual gold
price projection has been reduced from US$1,550/ounce to
US$1,390/ounce. Source: Bisnis Indonesia
• Steel demand may grow 2.9%. According to World Steel
Association data, world steel demand is estimated to grow
about 2.9% to 1.45m ton this year, while next year will
increase further by 3.2% to 1.5m tons. Last year, steel
demand growth reached its lowest point since FY09 due to
European crisis. Steel demand in China is expected to grow
by 3.5%, to 668.8m this year and demand in India is
expected to up by 5.9%, to 75.8 this year. Source: Bisnis
Indonesia
Gold price (US$/t.oz)
1,900
1,800
1,700
1,600
1,500
1,400
KRAS:
• Continues with US$1.2bn expansion despite poor result.
Krakatau Steel (KRAS) is planning to spend up to US$1.2bn
for a number of ongoing projects despite the declining steel
price. US$500m of its capex would be used to finance
projects for the company and its subsidiaries. The projects
include development of 1.2mt capacity blast furnace with
total investment of US$601.5m, port expansion costing
US$91.6m, 120MW combined cycle power plant with
US$132m in total investment, and a water pipe system
costing Rp66bn. Source: The Jakarta Post.
1,300
Jan-12
Apr-12
Jul-12
Source: Bloomberg, Kresna Research
Tins price (US$/ton)
26,000
24,000
22,000
20,000
18,000
16,000
Oct-12
Jan-13
Apr-13
ANTM:
• Revise contribution of gold sales. Aneka Tambang (ANTM)
is planning to revise contribution of gold to total sales,
which is from 35% to 25% this year, due to the fluctuation
of gold price. ANTM targets gold sales of 7,601kg this year.
Source: Bisnis Indonesia
• New smelters to fit in new regulation. Smelter owned by
Aneka Tambang (ANTM) in Tayan, Kalimantan Barat will be
completed by the end of this year. The capacity of the
smelter is 300k ton/year to process bauxite to chemical
grade alumina. The smelter in East Halmahera will be
completed in 2016 to process nickel to ferronickel with
capacity of 27k ton/ year. The other smelter project in
Mempawah, West Kalimantan has 1.2mt capacity per year
to process bauxite to smelter grade alumina. Source:
Investor Daily
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Apr-13
Source: Bloomberg, Kresna Research
Kresna Securities may seek to do business with companies covered in its research reports. Investors should therefore be aware that the firm may have a conflict of interest
that could affect objectivity of this report. Hence, this report should form as one of many others factors in making investment decisions. PLEASE SEE ANALYST
CERTIFICATION AND IMPORTANT DISCLOSURES AT THE END OF THIS REPORT
15