Indonesia-based coal miner Bumi has posted a nine per cent year-on-year rise in first quarter coal production at 20m tonnes, despite its operating performance being affected by high levels of rainfall.
Production unit costs were higher, mainly due to increased fuel costs and a higher stripping ratio, but this is expected to decline going forward as various infrastructure projects currently under development are brought into commercial production.
The group said its expansion programme is on track, with 2014 targets currently at 140m tonnes. The firm is on track to meet its 2012 target of 23m tonnes of coal for PT Berau, in which Bumi has an 85% stake and 75m tonnes for PT Bumi, in which Bumi has a 29% stake.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Berau Coal, owned by PT Berau, mined 4.1m tonnes of coal for the quarter, marginally higher than during the same quarter the previous year, and one million tonnes less than that mined the final quarter of 2011. Year-on-year sales remained stable at 4.6m tonnes, while production cost of sales per tonne rose from $32.6 to $41.2 and the average selling price rose from $71.3 to $78.3.
KPC, owned by PT Bumi, mined 8.4m tonnes of coal, up 0.1m tonnes on the same quarter the previous year, while sales fell by the same amount to 9.0m tonnes, production costs increased from $52.1 per tonne to $57.0 and the average selling price increase from $92.8 to $100.4 per tonne.
At Arutmin, also owned by PT Bumi, mined coal jumped 25% to 7.5m tonnes, sales leapt 43% to 6.8m tonnes, production costs rose from $40.3 per tonne to $43.0 and the average selling price climbed from $77.1 to $82.9 per tonne.
The share price first rose then fell 1.17% to 480.30p by 09:10.
NR
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
