BlackGold earns $320,000 revenue from Riau coal unit
Wednesday, March 1 2017 - 01:15 AM WIB
Petromindo
SGX-listed BlackGold Natural Resources Limited reported revenue of US$320,000 last year, generated from its coal subsidiary PT Samantaka Batubara (PT SB) in Indonesia?s Riau Province, which commenced coal sales in the first-half to a Riau province-owned enterprise.
The company said in a statement on Tuesday that no sales were made during 2015.
The company said cost of goods sold amounted to $266,000 in 2016. Cost of goods sold mainly relate to mining contractor, coal processing, royalties to government, provision for mine reclamation and rehabilitation, depreciation and amortization of mining properties and coal inventory.
Meanwhile, the group recorded gross profit of $55,000 last year. Other income amounted to $19,000 last year, as compared to $14,000 in 2015. The increase of $5,000 was mainly due to receipts from a government grant scheme during the year.
On December 1, 2016, the Group announced that it had, through its subsidiary, PT SB, signed a sales and purchase contract with the Indonesian state-owned electricity company, PT Perusahaan Listrik Negara (PT PLN) for the delivery of 500,000 tons per annum of coal. The initial term of the contract is for 5 years, with an option to extend for three additional 5-year terms, subject to mutual agreement between both parties. The first delivery of 5,000 tons was successfully completed on February 10, 2017.
Further, on February 24, 2017, the Group announced that it had received a purchase order with approximate value of US$12.6 million from PT Semen Padang, another state-owned company. Semen Padang is a subsidiary of IDX-listed PT Semen Indonesia (Persero) Tbk, the largest cement distributor in Indonesia.
?Over the next 12 months, the Group expects to generate steady sales through its continued deliveries to these state-owned customers,? BlackGold said.
PT SB is a feasibility asset located in Riau province, Sumatra, comprising 15,000 hectares. Through its local subsidiary, BlackGold has the rights to the PT SB concession until 2023.
Editing by Reiner Simanjuntak