Adaro sets higher coal production guidance
Friday, January 30 2015 - 01:47 AM WIB
IDX-listed coal mining giant PT Adaro Energy Tbk aims to produce higher coal output this year despite the current weak global coal market.
The company said in its fourth quarter performance report issued Thursday that coal production guidance for 2015 is set at 56-58 million tons.
Adaro said that last year it produced 56.21 million tons of coal, which was 8 percent higher than output in the previous year.
?Our operations continued to deliver solid performance as we produced 14.45 million tons during the fourth quarter. We delivered better than our guidance for 2014 of 54 million to 56 million tons, with coal production of 56.21million tons,? the company said the quarterly report.
?The increase was mainly due to a combination of sound contractors? performance and normal weather conditions. We sold 14.65 million tons of coal during the quarter to achieve 57.02 million tons of sales for the year as we continued to see good demand for our coal, particularly from Indonesia and India,? it added.
Adaro Energy has two coal subsidiaries including PT Adaro Indonesia (AI) and PT Semesta Centramas (SCM).
Adaro said it increased overburden removal by 8 percent to 77.55 million bank cubic meter (Mbcm). AI?s actual strip ratio during the fourth quarter was 5.41x, resulting in an actual strip ratio of 5.69x for 2014.
Meanwhile, SCM?s actual strip ratio during 4Q14 was 3.93x, resulting in an actual strip ratio of 4.68x for 2014. ?We are able to lower our strip ratio for three years in a row without harming our long-term mine plan due to investment we made to increase overburden removal during the higher coal price environment. Furthermore, the lower average planned strip ratio remained higher than the life of mine strip ratio,? it explained.
?Our focus in 2015 is to continue to look for cost reduction, maintain reliability of supply to our customers, and improve efficiency and productivity in each part of our coal supply chain,? the company said.
Adaro Energy?s guidance for 2015:
- Production volume : 56 to 58 million tons
- Coal cash cost (ex. Royalty) : US$31 to US$33/ton
- Planned strip ratio : 5.33x
- Operational EBITDA : US$550 million to US$800 million
- Capital Expenditure : US$75 million to US$125 million.
| ? | Units | 4Q14 | 3Q14 | 4Q14 vs. 3Q14 | 4Q13 | 4Q14 vs. 4Q13 | FY14 | FY13 | FY14 vs. FY13 |
| Coal Production??? | Mt | 14.45 | 14.03 | 3% | 13.59 | 6% | 56.21 | 52.27 | 8% |
| AI - Tutupan | Mt | 11.38 | 10.61 | 7% | 9.67 | 18% | 43.53 | 38.65 | 13% |
| AI - Paringin | Mt | 1.42 | 1.70 | (17)% | 1.69 | (16)% | 6.08 | 5.74 | 6% |
| AI ? Wara | Mt | 1.21 | 1.25 | (3)% | 2.23 | (46)% | 5.71 | 7.87 | (27)% |
| Balangan Coal | Mt | 0.44 | 0.33 | 33% | - | - | 0.89 | - | - |
| Sales Volume | Mt | 14.65 | 14.13 | 4% | 14.36 | 2% | 57.02 | 53.47 | 7% |
| AI - E5000 | Mt | 4.73 | 4.53 | 4% | 8.55 | (45)% | 18.26 | 34.09 | (46)% |
| AI - E4700 / E4900 | Mt | 7.88 | 7.58 | 4% | 3.29 | 140% | 30.79 | 8.43 | 265% |
| AI - E4000 | Mt | 1.55 | 1.50 | 3% | 2.41 | (36)% | 6.64 | 9.64 | (31)% |
| Balangan Coal | Mt | 0.49 | 0.33 | 48% | - | - | 0.88 | - | - |
| Coaltrade's 3rd party | Mt | - | 0.19 | - | 0.11 | - | 0.45 | 1.30 | (65)% |
| Overburden Removal | Mbcm | 77.55
|
92.01 | (16)% | 71.83 | 8% | 319.09 | 294.86 | 8% |
| AI | Mbcm | 75.82 | 90.46 | (16)% | 71.83 | 6% | 314.92 | 294.86 | 7% |
| Balangan Coal | Mbcm | 1.73 | 1.55 | 12% | - | - | 4.17 | - | - |
Editing by Reiner Simanjuntak