Bayan reports lower Q1 output as it expects market to remain weak

By Romel S. Gurky

IDX-listed coal miner PT Bayan Resources Tbk said production in the first quarter of this year fell by 14.70 percent to 2.9 million tons compared to 3.4 million tons in the same three-month period of last year as it anticipates the current market downturn to linger on throughout this year.

The company said in a filing with the Indonesia Stock Exchange Wednesday that sales volume also declined to 3.2 million tons from 3.9 million in the January-March period of 2013.

Average selling price (ASP) in the first quarter of this year stood at US$74.5 per ton, down from $83.5 in the same quarter of last year.

In the same statement, the company, which operates a number of coal concessions in East and South Kalimantan, said it expected full-year production to be relatively flat at between 13-14 million tons, compared to last year?s 13.7 million tons.

Full-year sales volume is targeted at 13.8-14.8 million tons, compared to 14.7 million tons last year.

Both of the company?s output and sales volume went south last year due to the global coal market downturn, which has sent commodity price tumbling during the past two years amid weaker demand and rising output from producing countries.

Bayan estimated its ASP this year to further decline to between $66-69 per ton, compared to $77 last year. Revenue for 2014 is projected at between $900 million and $1 billion, down from $1.15 billion last year.

Editing by Reiner Simanjuntak