BlackGold reports higher revenue

SGX-listed coal firm BlackGold Natural Resources Limited reported higher revenue in the first six-month of this year (6M2017) as the company started coal delivery to key customers during the period.

BlackGold said in a statement on Wednesday that revenue amounted to US$1 million in the second quarter of this year (2Q2017) and $1.5 million in 6M2017, as compared to $158,000 in both 2Q2016 and 6M2016.

During the first half of this year, the group commenced coal deliveries from its coal mines in Riau Province to two of its major customers, state-owned electricity firm PT PLN and cement maker PT Semen Padang.

?The majority of these deliveries were made during 2Q2017. For the same periods under review in the 2016 financial year, sales to the aforementioned customers had not yet commenced,? the company said in the statement.

Elsewhere, the company said that cost of goods sold (COGS) amounted to $1.2 million in 2Q2017 and $1.6 million in 6M2017, as compared to $219,000 in both 2Q2016 and 6M2016. ?In the current quarter, COGS is higher relative to revenues as a result of initial, non-recurring costs arising from the ramp-up of production volumes,? it said.

COGS comprises mainly costs incurred in relation to mining contractors, coal processing, royalties to government, depreciation and amortization of mining properties and coal inventory.

BlackGold through its subsidiaries operates three coal concessions in Riau Province. PT Samantaka Batubara 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