Morgan Stanley ANTM Gold Mine Acquisition Sends Positive Signal
Golden Opportunity for Cash
Up B/S
*Gold Mine Acquisition Sends Positive Signal:
*We reiterate our OW recommendation following Antam’s announcement
today that it is buying an Indonesian gold project. We see this as
attractive for two reasons:
1) Antam is putting its cashed-up balance sheet to work,and
2) the acquisition looks attractively-priced with an average cost (M&A +
development cost) of just $120/oz,significantly lower than average
EV/oz of most gold companies. On annualized basis, we estimate that the
Cibaliuang gold mine could add Rp20-30/sh or 15-20% to our EPS from
2011e onwards. We may adjust earnings after year-end results are
released at the end of this month.
*Acquisition Details: *The Cibaliuang gold project is
acquired from Arc Exploration (ARX) and ANZ Bank for just US$8m. ARX
was the original owner, which ran into difficulties due to cost
over-runs and financing difficulties, but listed on the ASX it used to
have a market cap of A$30mn in 1H08. The mine requires an additional
US$40mn to develop and is estimated to have reserves of 412,000 oz of
pure gold with annual production of 70,700 oz. The mine should be
commissioned by 2011 and we estimate that it should have similar
margins to Antam’s existing gold mine. The transaction is expected to
close in 4-6 months.
While we have not adjusted our numbers, we
believe this gold acquisition is a step in the right direction and that
Antam will continue to its M&A strategy and move toward our Bull Case PT of
Rp2,000.
________________________________
From: thom chris <thom_chris2...@yahoo.com>
To: obrolan-bandar@yahoogroups.com
Sent: Wednesday, February 11, 2009 2:42:00 PM
Subject: Re: [obrolan-bandar] antm upgraded by Morgan stanley to Rp2.000
boleh share reportnya pak?
thx
--- On Wed, 2/11/09, andref_r <andre...@yahoo. com> wrote:
From: andref_r <andre...@yahoo. com>
Subject: [obrolan-bandar] antm upgraded by Morgan stanley to Rp2.000
To: obrolan-bandar@ yahoogroups. com
Date: Wednesday, February 11, 2009, 2:23 AM
