Sakari

Sakari: Announced a record 4Q11 results which blew all estimates, bringing Co’s FY11 rev to exceed $1bil for the first time. 4Q11 Rev at $312.6m, +51% yoy and +44.4% qoq , while net profit at $72.9m, +139% yoy and +38% qoq. Result brings FY11 Rev to $1.1b, +30% yoy and net profit to $92.9m, +28% yoy.

Blow out results was due to higher value coal from Sebuku’s Northern Leases which helped to lift ASP to $100/t in 4Q11, resulting in grp exceeding the far-reaching targets which was set at the beginning of 2011. Overall, sales Vol for grp at 3,077 kt, was +6.1% yoy, with sales from Sebuku at 862 kt and Jembayan at 2,215 kt, while overall ASP for grp increased to $99.77/ton (FY11 at $92.93/ton) Cash costs however increased 16% to $54.54/ton vs $46.90/ton.

Sebuku surpassed many expectations by completing the first coal shipment from the Northern Leases just 5 mths after mobilising operationsin the area and pushing Sebuku’s coal production to 758Kt in 4Q11 from an average of 338Kt for 9M11. The positives from Sebuku, which is now on track to reclaim its position as one of the highest margin producers in the region, highlight the advances in 2011 and demonstrate just how strong Sakaru’s earnings and production platforms have become.

Sakari’s policy of paying 60% of its net profit to shareholders has again been confirmed with a final div of 5.83 US cents per share, bringing FY11 total to 10.07 US cents, representing a 5% yield. At current price, valuations are undemanding, with grp trading at 11.5x FY12E P/E