________________________________ From: "Wuddy Warsono, CLSA" <[EMAIL PROTECTED]> Date: Thu, 3 Jul 2008 12:27:45 +0800 To: Wuddy Warsono, CLSA<[EMAIL PROTECTED]> Subject: CL INDO: Indo Coal correction - Buying opportunity
Pls see email from our coal analyst Olie below. The sellf-off is a buying opportunity, in our view. * The “price collapse” heard in the market is coal price in future market, not in the physical market. The index that went down is the API2 Index for coal delivered to Amsterdam, Rotterdam, Antwerp in 2009. * The index went down to US$190/tonne on July 2nd from US$215.5 on July 1stafter going up for several weeks. * The dropping future price caused profit taking in the US coal equities last night and Asia Pac coal equities today. * Note that the physical market is still strong. The latest spot deals at Newcastle Port in Australia on July 1stranged between US$195-197/tonne. * Coal fundamental remains solid and we are still using US$125/tonne benchmark for our earnings forecasts in 2008-2009CL. * Valuations on Indonesian coal companies, at current price, look attractive, as shown on the table below. Companies PE (x) EV/Ebitda 08CL 09CL 08CL 09CL Bumi Resources 16.8 9.4 8.7 4.8 Bukit Asam 17.4 8.1 11.2 4.7 ITM 16.1 7.1 7.8 3.2 Best regards, Wuddy Warsono, CFA CLSA Indonesia | Institutional Sales Phone: (62-21) 573 9460 Toll Free - HK: 800 938 000 Toll Free - SIN: 800 621 1104 Toll Free - US: 800 460 2581 [EMAIL PROTECTED] ------------------------------------------------------------- CLSA CLEAN & GREEN: Please consider our environment before printing this Email The content of this communication is subject to CLSA Legal and Regulatory Notices, which can be viewed at https://www.clsa.com/disclaimer.html or sent to you upon request.