BlackGold earns 15% margins from coal sales to PLN, Semen Padang

By Romel S. Gurky

SGX-listed BlackGold Natural Resources Limited, which operates coal concessions in Indonesia, reported a gross profit of US$70,000 in the first quarter of this year, and revenue of $468,000.

The company started coal sales in the second quarter of last year, as such no coal sales were made during the first quarter of 2016.

BlackGold said in a statement Monday that it has commenced delivery of coal to its customers Indonesia?s state-owned electricity firm PT PLN and cement maker PT Semen Padang, at an average gross profit margins of 15 percent.

Cost of goods sold mainly relate to mining contractor, coal processing, royalties to government, depreciation and amortisation of mining properties and coal inventory. Cost of goods sold amounted to US$398K in the first quarter of this year, the statement said.

On March 27, BlackGold announced that it had completed its first coal delivery to Cement Padang in relation to the $12.6 million Purchase Order received from Cement Padang in February 2017. Further, the group announced on April 19 that its subsidiary, PT Samantaka Batubara (PT SB), had delivered the fourth shipment of coal by barge to the Tenayan port. The shipment was made in relation to the coal sales and purchase contract signed between PT SB and PT PLN, for an annual delivery of 500,000 tons of coal to the 2x110 MW Tenayan coal-fired power plant in Riau Province. ?These steady deliveries will continue to generate consistent revenue for the Group,? BlackGold said.

BlackGold through its subsidiaries operates three coal concessions in Riau Province. Samantaka has coal concession for an area of 15,000 hectares in Riau province, and has over 200 million tons of coal resources (JORC code).

Editing by Reiner Simanjuntak