SO far investors seem to have been wary of Bumi. Its complex structure and ongoing acquisition wrangles have meant many are reluctant to follow the Rothschild blank cheque venture, but it’s unlikely to stay that way for long.
First-half results in mid-August saw underlying profits of $54m (£32m) amid a bullish outlook on thermal coal prices, which the company says should remain strong over the short and medium term on higher demand from Asia and Europe.
Bumi has a unique exposure to the Indonesian coal market – the largest in the world – and an investor day last week should have gone some way to allay fears. If prices continue to rise, and once it completes the acquisition of a majority stake in PT Bumi Resources Minerals that’s been making things look complicated, then we expect its following to increase.