Friday, September 27, 2013

M’sia Smelting falls 3% on mining contract termination

Hot Stock M’sia Smelting falls 3% on mining contract termination
Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com    
Friday, 27 September 2013 11:18

KUALA LUMPUR (Sept 27): Malaysia Smelting Corp Bhd (MSC) fell as much as 3% after Indonesian authorities terminated the firm's tin-mining contract in the neighbouring country.

At 10.59am, MSC which was Bursa Malaysia's sixth-largest decliner, changed hands at RM2.76 with 105,100 shares done. The stock had earlier fallen as much as nine sen to RM2.75.


MSC said yesterday that Indonesian authorities had "affirmed the ending of the contract of work" between the Indonesian government and MSC’s unit PT Koba Tin. This is for Koba Tin’s mining operations within the Bangka Belitung islands.

MSC said Koba Tin may appeal to authorities in the neighbouring country to extend the contract.

Analysts said the termination of the mining contract does not augur well for MSC. "We deem this formal termination a negative for investors," RHB Research Institute Sdn Bhd analyst Ng Sem Guan wrote in a note today.

Ng said although tin prices have risen to some US$23,000 (RM74,060) a tonne since early this month, the trend is only expected to benefit MSC's Malaysian operations following the termination of the Indonesian contract.

He said MSC's Malaysian operations produce 200 tonnes of tin ore a month.

"Furthermore, Indonesia’s restrictions on exports of tin ore below 99.9% purity had resulted in lower smelting volume at its Butterworth, Penang-based plant,” Ng said.

Ng said RHB is maintaining its target price of RM2.35 and "sell" call for MSC. The recommendations have taken into account the exclusion of 50 sen from RHB's one-time price-book valuation for MSC in financial year ending December 31, 2014.

The 50 sen exclusion is by virtue of a potential impairment in KM Resources where MSC has investments.

"Thus, we maintain watchful on SMELT’s (MSC) investment in KM Resources , whose limited proven mine reserves amid lower gold and copper prices also suggest the potential of impairment risk," Ng said.

Meanwhile, BIMB Securities said in a note today that the technical immediate support and resistance for MSC shares are seen at RM2.83 and 2.85 respectively.


Source/Extract/Excerpts/来源/转贴/摘录: http://www.theedgemalaysia.com/
Publish date: 27/09/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock