Saturday, April 25, 2009

Business,Trade, Oil, Gas, Mining updates from Jakarta

- Indonesian Telco Indosat's Profit Plunges 82 Pct
- Astra’s Federal Unit Plans 14.6% Bond Yields to Lure Investors
- Bank Tabungan Sets Indicative Coupon On IDR1.5 Tln Bonds
- BNI Hopes To See 20% Increase In Net Profit
- Indonesia's Bank Jabar Banten Raises IPO Earning Target
- Indonesian Govt Trying To Save $2 Bln From 2009 State Budget
- Indonesia permits 3 firms to import 125KT raw sugar
- Indonesia's Production Of Processed Cacao Down 30%
- Indonesia's Bakrie Plantations Posts 32% Fall In Q1 Sales
- Indonesia's Citilink To Operate As Independent Airline
- Indonesia's Garuda reaps big profit in 2008
- Indonesia's KAI Facing End Of Monopoly In Railway Operations
- Indonesian Govt Preparing Draft On Stopping Hcfc Imports
- Germany Is Main Rattan Export Destination Of Cirebon,
- Indonesian Govt To Popularize Brands Of 200 Domestic Products
- Indonesia Expecting Forex Earning From ADB Meeting In Bali
- Mozambique, Indonesian Firm Sign $30 Mln Gas Deal
- Mozambique Signs Gas Explor Contract With PT Kalila Energi
- Indonesia's Pertamina to buy 510,000 barrels HSFO for May
- Pertamina allocates 1 mil bls May LSWR for export
- Irregularities In Oil, Gas Cause Potential Losses To Indonesia
- Santos 1Q Revenue Falls 15%, Maintains Output Call
- Newcrest Output Drops 17% as Cadia, Gosowong Slow
(Courtesy Joyo News Service)

Indonesian Telco Indosat's Profit Plunges 82 Pct
JAKARTA, April 23 Asia pulse - State telecommunications operator
PT Indosat Tbk said on Wednesday its net profit in the first
quarter of 2009 plunged 82.4 per cent to Rp107.9 billion (US$10
million) from Rp613.9 billion in the same period a year earlier.
Indosat President Director Johnny Swandi said the rupiah's
depreciation against the dollar was responsible for the drop.
He said income only grew 5.3 per cent to Rp4.497 trillion in the
January-March 2009 period from Rp4.269 trillion in the same
period last year.
Operating expenses meanwhile rose 6.3 per cent to Rp3.42
trillion from Rp3.22 trillion and total debts increased 3.5 per
cent to Rp17.49 trillion from Rp23 trillion.
Astra’s Federal Unit Plans 14.6% Bond Yields to Lure Investors
By Naila Firdausi
April 23 (Bloomberg) -- PT Federal International Finance, a unit
of Indonesia’s largest auto retailer PT Astra International,
said it will price new bonds to yield as much as 14.6 percent to
lure investors.
The Jakarta-based company plans to price 365 billion rupiah ($33
million) of 370-days notes to yield 12.55 percent, 93 billion
rupiah of two-year bonds to yield 13.55 percent and 542 billion
rupiah of three-year bonds to yield 14.6 percent, it said in a
statement published in the Investor Daily Indonesia newspaper
PT Federal plans to use money raised from the sales to boost
lending, the statement said. The offer period for the bonds
lasts through April 27, and the company will list the notes on
the Indonesia Stock Exchange on April 30.
The company on March 18 said plans to sell 600 billion rupiah of
Bank Tabungan Sets Indicative Coupon On IDR1.5 Tln Bonds
JAKARTA, April 23 (Dow Jones)--Unlisted Indonesian lender PT
Bank Tabungan Negara will sell its three bond tranches, worth a
total of IDR1.5 trillion ($136.7 million), with coupons at an
indicative 150 to 200 basis points above coupons on government
benchmarks of the same tenors, the bank's finance director said
Bank Tabungan, a state-owned, midsized lender, will look to
price its three-year bond based on the FR18 government bond that
matures July 2012; its four-year bond based on the FR33
four-year government bond; and its five-year notes on the FR51
five-year government series, Finance Director Saud Pardede said
ahead of a news conference.
The FR18 pays a coupon of 13.175%, the FR33 12.5% and the FR51
11.25%, according to data from the finance ministry and the
Interdealer Market Association.
Pardede said bookbuilding begins Thursday and will end May 5,
with the bonds to be offered to investors May 22-26.
The funds raised will be used to support Bank Tabungan's loan
growth, he said without elaborating.
PT Danareksa Sekuritas, PT Mandiri Sekuritas and PT Trimegah
Securities are underwriting the bonds.
BNI Hopes To See 20% Increase In Net Profit
JAKARTA, April 23 Asia Pulse - Publicly traded bank PT Bank
Negara Indonesia (BNI) (JSX:BBNI) is set to see a 20 per cent
increase in net profit this year after recording a strong growth
last year.
Last year the state bank posted a 36.1 per cent rise in net
profit to Rp1.22 trillion (US$110.9 million) with net interest
income surging 32.7 per cent to Rp9.91 trillion.
Its Vice President Felia Salim said the bank hopes to continue
to see an increase in interest and fee-based income this year
despite gloomy economic outlook.
Commercial and consumer credits still contribute strongly to net
interest income and fee-based income is also growing , Felia
The bank, however, has to pay more attention to growing non
performing loan (NPL) especially involving corporate credits,
she was quoted as saying by the newspaper Investor Daily.
Last year, the bank succeeded in slashing its gross NPL rate
from 8.2 per cent to 4.9 per cent and this year it hopes to cut
the figure lower, she said.
Indonesia's Bank Jabar Banten Raises IPO Earning Target
JAKARTA, April 23 Asia Pulse - Indonesia's PT Bank Jabar Banten
has raised the amount it hopes to earn from initial public
offering (IPO) to be launched in the last quarter of this year.
The bank owned by the provincial administrations of West Java
and Banten raised the earning target to Rp385 billion (US$35
million) from Rp300 billion set earlier from the IPO, which has
been delayed since 2007.
Corporate secretary Endang Ruchiyat said the bank will sell 20
per cent of its shares in the IPO reducing the shares of the
regional administrations to 80 per cent.
The bank is also studying possibility of issuing bonds valued up
to Rp2 trillion in the second half of this year to increase its
credit financing capacity, the newspaper Investor Daily said.
Indonesian Govt Trying To Save $2 Bln From 2009 State Budget
JAKARTA, April 23 Asia Pulse - The government is trying to save
Rp21 trillion (US$2 billion)from the 2009 state budget to be
able to cut a state budget deficit to 1.3 per cent of the gross
domestic product (GDP) next year, a minister said.
Speaking to the press after opening a coordination meeting of
national development here on Wednesday, State Minister of
National Development Planning Paskah Suzetta said the fund could
also be used to increase fiscal stimuli and government subsidy
next year.
"We will try to optimize the use of the 2009 state budget fund
so that we can save Rp21 trillion to keep down the budget
deficit to 1.3 percent," he said.
By doing so, the government was optimistic that the 2010 budget
deficit would be lower than the projected 2.5 per cent of the
GDP for this year, he said.
In the draft 2010 state budget, the government would continue to
rely on tax receipts, he said.
Suzetta, who is also chief of the National Development Planning
Agency (Bappenas) said the draft 2010 state budget would
constantly be based on conservative approaches although the
economy would begin to recover next year.
"The year 2009 is the most fragile phase as the economic growth
will contract," he said.
Indonesia permits 3 firms to import 125KT raw sugar
JAKARTA, April 23 (Reuters) - Indonesia has issued permits to
three sugar refiners to import 125,000 tonnes of raw sugar ahead
of schedule to replenish stocks, traders said.
The permits were to be given for imports in the second half of
this year but the three can start buying now because they are
running out of stock, a trader in Jakarta said.
The three firms are PT Permata Dunia Sukses Utama, PT Sugar
Labinta and PT Makassar Tenne. They were among seven refiners
which obtained permits in December to buy 807,365 tonnes of raw
sugar during the first six months of 2009.
Diah Maulida, director general of foreign trade at the trade
ministry, confirmed that PT Permata Dunia Sukses Utama is one of
few firms receiving the permits but she would not give more
Indonesia relies on imported raw sugar, since domestic supply of
the sweetener is not yet sufficient, to produce high quality
refined sugar used by the food and beverage industry.
Southeast Asia's biggest economy is however scaling back imports
of white sugar for household consumption since domestic output
is bigger than consumption. (Reporting by Yayat Supriatna;
Writing by Aloysius Bhui; Editing by Ben Tan)
Indonesia's Production Of Processed Cacao Down 30%
JAKARTA, April 23 Asia Pulse - Indonesia's production of
processed cacao sank 30 per cent in the first quarter of 2009 on
sagging market demand especially in international market.
Production fell to only 31,200 tons in the first three months of
this year from 44,500 tons in the same period last year, the
association of cacao industries said.
Association chairman Aluisius Wayadanu said two processing
factories have even stopped operation in South Sulawesi, one of
the largest cacao bean production centers in the country.
Aluisius said exports have been on the decline since the last
quarter of 2008 with shrinking demands in major markets
including the United States, Europe and Japan.
Last year, the world's third largest producer of cacao beans,
produced 178,000 tons of processed products of cacao and 80 per
cent of which were exported, the newspaper Investor Daily
Indonesia's Bakrie Plantations Posts 32% Fall In Q1 Sales
JAKARTA, April 23 Asia Pulse - PT Bakrie Sumatera Plantations
(JSX:UNSP) posted a 32 per cent decline in sales to Rp459.6
billion (US$41.8 million) in the first quarter of this year from
Rp677.8 billion in the same period last year.
The prices of its products, crude palm oil and rubber sank in
international market, a company official cited.
Its sales of CPO were valued at Rp351.6 billion in the first
three months of 2009 down 28 per cent from the same period last
year, Dian Indah, its investor relations officer said.
A sharper fall of 42 per cent was recorded in the sales of
rubber to Rp108 billion from Rp187.7 billion, Dian added.
Indonesia's Citilink To Operate As Independent Airline From July
JAKARTA, April 23 Asia Pulse - Citilink, a business unit of the
Indonesia's flag carrier Garuda Indonesia will start to operate
as an independent airline in July, an airline official said.
Juwono Tjipto, the marketing manager of Citilink, which serves
domestic routes, said the spin off process is now in the final
Juwono said Citilink already has three units of aircraft
including two units of Boeing 737-300 and one unit of Boeing
737-400 and the number will be increased to 10 units by the end
of this year.
In September, Citilink is to receive a grant of 5 units of
aircraft from Garuda allowing it to widen its service areas, he
was quoted as saying by the newspaper Investor Daily.
Indonesia's Garuda reaps big profit in 2008
JAKARTA, April 23 (AFP) -- Profits for flag-carrying airline
Garuda Indonesia jumped more than tenfold in 2008 thanks to
increased revenue and higher passenger numbers, the company's
chief executive said Thursday.
The company's net profit for January to December last year
surged to 670 billion rupiah (60.97 million dollars), up from 60
billion rupiah the year before, Emirsyah Satar was quoted as
saying by Dow Jones Newswires.
"At a time when most airline companies reported weak earnings
last year, Garuda was able to book a strong profit due to higher
revenues," Satar said.
Garuda's revenue rose 37 percent on year to 19.4 trillion rupiah
from 14.2 trillion a year earlier, he said.
The airline carried 10.1 million passengers last year, an
increase of nine percent from 2007.
The carrier has increased profits despite stiff competition from
regional and low-cost carriers and years of heavy debt
The company made a net loss of 688.47 billion rupiah in 2005,
narrowing it to 197 billion in 2006.
Garuda has struggled under a European Union ban imposed in 2007
on safety concerns preventing all Indonesian airlines from
flying in its airspace.
A Garuda Boeing 737 crash-landed at an airport in the Javanese
city of Yogyakarta in 2007, killing 21 people.
Indonesia's KAI Facing End Of Monopoly In Railway Operations
JAKARTA, April 23 Asia Pulse - The Indonesian government will
soon introduce a regulation paving the way for the
liberalization of the railway sector.
The ministry of transport has submitted a draft regulation on
the railways to the state secretary for presidential approval,
the newspaper The Jakarta Post said.
Tunjung Inderawan, the railway director general, said the draft
regulation calls for an end to the monopoly of PT Kereta
ApiIndonesia in railway operation n the country.
Meanwhile, a railway analyst from the Indonesian Science
Institute Taufik Hidayat said the regulation should also address
matters such as safety in railway transport and equal treatment
of all players in the business.
Indonesian Govt Preparing Draft On Stopping Hcfc Imports
BANDUNG, April 23 Asia pulse - The Indonesian government is
preparing a draft on the scrapping of hydrochlorofluorcarbon
(HCFC) from the list of import commodities.
"We have stopped the import of types of chlorofluorcarbons, and
later their abolition from the list of import commodities,"
Masnellyarti Hilman, deputy for human resources conservation and
environmental damage control of the Ministry of Environment in
Bandung said Friday.
It was stated in a seminar on challenges and opportunities for
the elimination of ozone destructive substances in Indonesia
that the elimination of HCFC from the list of Indonesian import
commodities, is scheduled for completion in 2013.
And the government's draft on the abolition of
hydrochlorofluocarbons in Indonesia is scheduled for completion
in 2030.
Germany Is Main Rattan Export Destination Of Cirebon, Indonesia
CIREBON, West Java, April 23 Asia Pulse - Germany has become the
biggest destination of Cirebon's rattan handicraft exports
valued at up to US$2 million a month.
Germany had been importing 198 containers of rattan handicraft
goods from Cirebon regency in Indonesia each month, Head of the
Cirebon Regency Industry and Trade Agency Haki told the press on
The commodities with their attractive and artistic shapes and
forms had become very popular and sought in Germany, he said.
He added that the rattan commodity exports to Germany in January
2009 reached 198 containers worth US$2.009 million.
The other countries in Europe which had also imported a great
deal of the commodities from Cirebon are Italy and Greece.
Cirebon's rattan commodity exports in February 2009 reached 745
containers estimated at US$7.6 million he said.
The regency had also been exporting its textile products to
Argentina and Egypt, he added.
Indonesian Govt To Popularize Brands Of 200 Domestic Products
JAKARTA, April 22 Asia pulse - The Indonesian government is to
make an effort to popularize the brands of 200 of the country's
products at home, regionally and globally, Trade Minister Mari
Pangestu said.
"The trade ministry wants the brands of 200 local products to be
widely known in the country, in the region and in the world,"
the minister said here on Wednesday.
She said her office was currently making a database on companies
whose products were potential to have trademarks of their own
including products of small and medium businesses.
To meet the target "we will facilitate them to be able to
participate in various exhibitions," she said.
She said her office would also help improve packaging of
products, provide production equipment and with marketing.
Right now, she said, the government had just launched "Love
Indonesia" campaign logo and program to improve appreciation to
the country's products, services and image in the international
Besides encouraging going global, the trade ministry had also
encouraged small and medium businesses to sell their products in
good packaging and with trademarks.
She said the main problem of small and medium businesses was
their production which was still limited. In view of that, she
said her office would coordinate several small and medium
businesses to meet large-scale orders.
For example, she said, "10 small and medium businesses would be
asked to produce same products to meet orders."
The director of business development and registration of the
ministry's Directorate General of Domestic Trade, Dede Hidayat,
said his office would intensify development programs for small
and medium businesses so that they could become big.
"We are ready to facilitate to make their products enter modern
retail business. We are also ready to help those wishing to make
trademarks or packaging," he said.
Dede said his office was ready to accompany small and medium
businesses during negotiations with retailers and introduce them
to producers of small packages (5,000 to 10,000 product units).
He said his office also had a matchmaking program to connect
small and medium businesses with foreign buyers.
Indonesia Expecting Forex Earning From ADB Meeting In Bali
JAKARTA, April 23 Asia Pulse - Indonesia expects to earn US$7.5
million in foreign exchange from the annual meeting of the Asian
Development Bank (ADB) in Bali on May 2-5, a minister said.
"Around US$7.5 million in foreign exchange is expected to come
from around 2,500 foreign participants through their spendings,"
acting Coordinating Minister for Economic Affairs Sri Mulyani
said after reporting preparations for the meeting to President
Susilo Bambang Yudhoyono here on Wednesday.
She said the 42nd annual ADB meeting was scheduled to be
attended by ADB governors, representatives from international
non-governmental organizations, banking institutions, observers
and investors.
The ADB which is the world's second largest financial
institution after the World Bank has 67 member countries.
"This will be the second time for Indonesia to host such a
meeting," Mulyani said.
She said the event would have a positive impact on Indonesia's
image as it would show Indonesia to be in stable conditions and
able to host an internatinal event and contribute to efforts to
help the world economy recover from the crisis.
"Certainly there will also be tourism promotions during the
event and then more tourists will come," she said.
President Susilo Bambang Yudhoyono is scheduled to open the
meeting on May 4.
"President Yudhoyono and president of the ADB would also sign an
ADB annual meeting series stamp," she said.
Mulyani said President Yudhoyono had given directives to ensure
the meticulous preparation of the meeting "so that the
international community's confidence in and perception of
Indonesia is maintained."
Mozambique, Indonesian firm sign $30 mln gas deal
By Charles Mangwiro
MAPUTO, April 23 (Reuters) - Mozambique state oil and gas
Empresa Nacional de Hidrocarbonetes, ENH, signed a $30 million
deal on Thursday with Indonesian mining company, PT Kalila
Production, to look for gas in the central Sofala province.
ENH's Chief Executive Officer, Nelson Ocuane, told reporters the
investment was for gas prospection in the Buzi bloc for the next
eight years. He plans to open two wells for prospection and
another two for evaluation in an area covering 600 kilometres
(373 miles).
"We have signed the deal for the amount of $30 million and ENH
has ceded 75 percent of its shareholding in the Buzi bloc to PT
Kalila production, (and) the two companies would have joint
operations in technical, research and production," Ocuane said.
PT Kalila will be represented locally by Buzi hydrocarbons, a
company 100 percent owned by PT Kalila production.
PT Kalila has operations in Indonesia as well as the United
The government last year awarded ENH a licence to explore for
gas in Buzi, which has estimated reserves of 10-17 billion cubic
feet, as demand for gas by industrial consumers in Mozambique
and neighboring countries rises.
Mozambique has enormous proven gas deposits, but has so far
lacked the technical and financial capability to tap into these
reserves and satisfy its growing energy needs.
(Reporting by Charles Mangwiro, Editing by Henrique Almeida and
Peter Blackburn)
Mozambique Signs Gas Exploration Contract With PT Kalila Energi
By Fred Katerere.
April 23 (Bloomberg) -- Mozambique’s national hydrocarbons
company signed a $30 million agreement with PT Kalila Energi
Ltd. of Indonesia to prospect for gas in the Buzi bloc in the
central Sofala province, the company said.
Kalila will explore for natural gas in the area for the next
eight years and will drill two prospect and two evaluation
wells, Nelson Ocuane, chief executive officer of Empresa
Nacional de Hidrocarbonetos de Mocambique, known and ENH, told
reporters in the capital, Maputo, yesterday.
ENH has ceded 75 percent of its shareholding in the Buzi bloc to
Kalila, Ocuane said. The contact also provides for funding for
social responsibility and staff-training programs.
Platts Commodity News April 23, 2009
Indonesia's Pertamina to buy 510,000 barrels HSFO for May
Singapore-- Indonesia's Pertamina is set to import three cargoes
of 170,000 barrels each of 180 CST high sulfur fuel oil, with 2%
sulfur for May, steady from April levels, a source with
knowledge of the imports said Thursday.
The state-owned refiner is expected to buy all three cargoes
from its trading arm Petral on a term basis.
The three cargoes are expected to be delivered to Jakarta,
Surabaya, and Pulau Sambu.
Pertamina has a term contract to buy two to six cargoes of 180
CST high sulfur fuel oil a month from Petral.
Pertamina buys fuel oil for Indonesia's state-owned power
utility Perusahaan Listrik Negara.
Jonathan Nonis,
Platts Commodity News April 23, 2009
Indonesian Pertamina allocates 1 mil barrels May LSWR for export
Singapore-- Indonesia's state-owned refiner Pertamina has
allocated up to 1 million barrels of low sulfur waxy residue for
export in May, industry sources said Thursday.
This is down 685,000 barrels from what was allocated in April.
Pertamina will export two cargoes of 200,000 barrels each of
mixed-cracked LSWR and three similar-sized cargoes of V-500 LSWR
from its Balikpapan refinery in May.
The state-owned company has not offered any straight run LSWR
from Sungai Pakning, or its Kasim refinery, a source said. "I
don't see any [straight run LSWR] but it may be out later," he
The mixed-cracked LSWR will go to Japanese term-lifter Mitsui,
while the three V-500 LSWR cargoes will go to Japanese term
lifters Itochu, Mitsui as well as Malaysia's Petronas.
The Indonesia state oil company had signed a term contract with
Petronas to supply up to two cargoes of 200,000 barrels each of
V-500 LSWR per month over October2008-September 2009.
Product Volume Lifter Loading (Balikpapan)
V-500 200,000 barrels Petronas May 6-8
Mixed Cracked/V-500 200,000 barrels Mitsui May 10-12
Mixed Cracked/V-500 200,000 barrels Mitsui May 15-17
Mixed Cracked/V-500 200,000 barrels Mitsui May 19-21
V-500 200,000 barrels Itochu May 28-30
Jonathan Nonis,
Irregularities In Oil, Gas Cause Potential Losses To Indonesia
JAKARTA, April 23 Asia Pulse - Indonesia's Supreme Audit Agency
has found Rp30 trillion (US$2.7 billion) of possible budget
losses and irregularities in the first half of last year.
The potential losses caused by irregularities were found mainly
in the oil and gas sector, agency chairman Anwar Nasution said.
The losses were caused largely by mismanagement and lack of
monitoring, Nasution told lawmakers in a meeting.
He said the auditors of the agency found several weaknesses in
government institutions and their failure to comply with laws or
Santos 1Q Revenue Falls 15%, Maintains Output Call
SYDNEY, April 23 (Dow Jones)--Santos Ltd. (STO.AU) Thursday
reported a fall in first-quarter revenue on reduced production
and a lower oil price, but the blow was softened by higher gas
prices and a weaker Australian dollar.
The Adelaide-based company stuck to its annual production and
cost guidance and said that it's continuing to talk to a range
of potential liquefied natural gas customers.
Santos has expansive oil and gas interests in the states of
Western Australia and Victoria, and overseas interests in
Indonesia and Vietnam. But it is pinning most of its growth
prospects on its coal seam gas assets in Queensland and their
potential to be liquefied for shipment to Asia.
Santos said it's continuing marketing discussions with a range
of LNG buyers after telling Dow Jones Newswires Tuesday it's
continued to "encounter firm interest from buyers". Chief
Executive David Knox said in February that its LNG joint venture
with Malaysia's Petroliam Nasional Berhad, or Petronas, hopes to
sign a customer some time in 2009 - a feat analysts say is
becoming increasingly difficult given the current demand slump
and possible future LNG oversupply.
Revenue at Santos in the three months to March 31 fell 15% to
A$540 million on year as production slipped 4% to 13.2 million
barrels of oil equivalent.
Santos's output was impacted by the sale last year of 40% of its
assets to Petronas and natural field decline.
The company maintained its annual production guidance of 53
million-56 million BOE and its annual production cost guidance
of A$550 million-A$570 million. If Santos's first quarter
production is maintained throughout year, it will hit the bottom
end of its annual production guidance.
First-quarter production of 13.2 million BOE included a 2% rise
in oil output, driven by a better performance from the company's
Western Australian assets. Gas production at Indonesia jumped
30% after pipeline capacity constrictions were eased.
Investors welcomed the steady production figures and relatively
small fall in revenue compared to size of the fall in the oil
price. The company's shares closed 3.9% higher at A$16.50.
Over the first quarter, Santos sold its oil for an average price
of A$71.16, down 33% on-year, but the fall would have been worse
if it weren't for a weaker Australian dollar.
Santo got A$4.50 a gigajoule for its gas, up 13% on-year and
said the rise was primarily due to higher LNG prices. The
company is also benefitting from an undersupply of gas in
Western Australia.
Newcrest Output Drops 17% as Cadia, Gosowong Slow
By Jesse Riseborough
April 23 (Bloomberg) -- Newcrest Mining Ltd., Australia’s
largest gold mining company, said third-quarter output declined
17 percent because of slowing production at its Cadia mine in
New South Wales state and the Gosowong operation in Indonesia.
Output dropped to 364,794 ounces in the three months ended March
31, from 441,341 ounces a year earlier, the Melbourne- based
company said today in a statement. Copper production rose 11
percent to 23,436 metric tons.
Newcrest today kept its full-year output forecast at 1.63
million ounces to 1.7 million ounces of gold and 85,000 tons to
88,000 tons of copper and will need to boost gold production
this quarter to meet its target. All mines are producing
according to plan, the company said.
Output from its Cadia operation slumped 45 percent due to lower
ore grades and increased movement of waste material, Newcrest
said. Output from Gosowong declined 22 percent, also due to
lower grades and a drop in processing rates, it said.
Newcrest rose 1.7 percent to close at A$28.89 on the Australian
stock exchange. Gold for immediate delivery rose 0.5 percent to
$894.58 an ounce at 6:05 p.m. Sydney time.
The company wants to boost output by about 40 percent to 2.3
million ounces annually by 2014, Newcrest said in a
presentation. The target can be reached by increasing output
from existing mines and excludes acquisitions, Chief Executive
Officer Ian Smith said today on a conference call with analysts.
“Everything within this five-year plan to get to 2.3 million
ounces is at hand,” Smith said. “The chances of further
enhancements as we go through a refreshment of the five- year
plan every 12 months going forward is that we’ll progress that
profile to a better place.”
The company’s gross cash margin widened 36 percent to A$845 an
ounce from the previous quarter, with the average sale price
jumping to A$1,352 an ounce. Gross costs were A$507 an ounce,
down from A$576 an ounce the previous quarter, Newcrest said.

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