Berau sees higher production, flat revenue this year

IDX-listed coal mining company PT Berau Coal Tbk said that while production this year is projected to increase to 26 million tons from 23.5 million tons last year, revenue is expected to remain flat at US$1.4 billion due lingering weak price of the commodity, Kontan reported on Tuesday.

?This year, we predict average coal price to be only between US$55 to $56 per ton,? President Director of Berau Coal, Amir Sambodo said as quoted by Kontan.

He said that Berau, a subsidiary of London-listed Asia Resources Minerals Plc (ARMS), will take various efficiency measures including refinancing debt maturing in 2015 through the planned issuance of bonds worth up to $500 million.

As of May 2014, Berau has already produced 10.15 million tons of coal, while in terms of revenue, the company has booked $579 million, Kontan said.

The company suffered a net loss of $10.18 million during the first quarter of this year, shrinking from a net loss of $32.19 million in the same period of last year.

Meanwhile, Bob Kamandanu, Chairman of ARMS, said that the company was looking into the possibility of acquiring a new coal mine in Indonesia, with reserves of targeted mine at between 50-100 million tons. ?If we could get producing mine, it?s better. But non-producing mine is also okay as long as the potential is good,? Bob said. (*)