[saham] Executive at BUMI fights back over misleading information generated by Bloomberg.

[Joe Grunk]

Executive at BUMI fights back over misleading information generated by 
Bloomberg. 

  
    
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      From: Dileep Srivastava 
Sent: Wednesday, November 21, 2007 3:05 PM
To: '[EMAIL PROTECTED]'; '[EMAIL PROTECTED]'
Cc: '[EMAIL PROTECTED]'; '[EMAIL PROTECTED]'; '[EMAIL PROTECTED]'; '[EMAIL 
PROTECTED]'
Subject: Credit Suisse - note dated 20 Nov '07 - Indonesia coal output drops 
25% on rain

   
  Michele,
   
  I note from your story out on Bloomberg that CS analysts and a Trina Chen of 
HK are out with a report that Indonesia coal output is down by 25% on the back 
of Banpu and SAR sharp drops and force majeures -  ends lamely by saying Bumi’s 
sales estimates are down by 2%- leading to the question why Bumi is mentioned 
at all!
   
  Bumi , probably, is the only thermal coal producer which has actually 
increased sales in 2007! Bumi to end the year at 56 million tons or 12% higher 
than last year’s 50 million tons. 
   
  Moreover, Bumi’s coal produced and conveyed at 39.3 million tons between Jan 
– Sep ‘07 is 9% higher over just 36.2 million tons in the same period last 
year.  
   
  It is totally misleading to suggest that either Bumi’s production or sales 
are below last year – in spite of the challenges.
   
  Bumi is ahead on all operating parameters and expects to end 2007 compared 
with 2006 as follows:-
   
  12% higher volume              – 56 MT vs 50 MT
  5%   higher average price     - $43.00/MT vs 40.80/ MT
  Lower production cash cost -  ca$ 1/ MT
  Core EPS                          - at least 50% higher
  EPS (with XO)                    - over 4 times higher
   
  Rainfall is not a significant issue yet in Bumi yet – we operate in 14 mining 
areas with multiple pits in each of them in our 170,000 hectares concession 
areas ( 3x the size of Singapore), possess the flexibility to move coal to our 
2 captive deep sea international ports ( which take cape sized vessels) either 
by conveyors and/or trucks, supplemented by our 3 owned dedicated barge 
terminals with access to floating transfer stations. We also have inventory 
spread across our concessions and with operators which give us flexibility on 
transportation and shipments – this inventory is equivalent to about 2 years 
production of some of the miners mentioned!
   
  I am not sure about Bloomberg’s intent to club a world class multi site 
flexible mega operation like Bumi with the much smaller and obviously higher 
risk profile players – its misleading.I wish a credible offering like Bloomberg 
may like to ascertain true facts first before informing its global constituency 
at large – in my opinion,  they deserve this consideration.
   
  We would like to renew our invitation to you all to visit our world class 
mine sites and ascertain facts for yourself first – some reputed media 
companies have already done so. After all credibility, in my opinion, should be 
the prime concern of any quality media offering.  
   
  Regards,
   
  Dileep  
   
   


       
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