Bumi Resources Minerals booked Rp 343 billion in 1H 2011

PT Bumi Resources Minerals Tbk. (BRMS) reported Thursday its 1H 2011 consolidated financial results. Despite the lower copper and gold production by its associated company, PT Newmont Nusa Tenggara (?NNT?), BRMS was able to book a 96% profit increase, which was mainly driven by the favorable realized commodity prices and the reduced interest and financing charges.

Ken Farrell, the CEO of BRMS, explained, ?The temporary production drop by NNT has been anticipated due to the delayed phase 6 development in the Batu Hijau mine site. NNT is currently producing copper and gold from the maturing phase 5 and from the lower grade stock pile ores nearby. As the phase 6 development is being finalized, NNT is expected to increase its copper and gold production rate early in 2013. BRMS is also on track to commence its first iron ore production from the Bumi Mauritania S.A. early in 2012, while our zinc and lead project operated by PT Dairi Prima Mineral plans to initiate production in 2013 subject to the borrow and use exploitation permit issued by the Ministry of Forestry by end of this year.?

Yuanita Rohali, the CFO of BRMS, added, ?Our realized copper and gold prices in the 1H 2011 increased by 36% and 25% respectively from the same period of last year. In addition, BRMS has successfully de-leveraged its balance sheet and maintained a relatively strong Net Debt to Equity ratio of 0.1x. Consequently, the Company?s Interest and financing charges were reduced by 61% to its current level. These factors were responsible for the 96% profit increase to Rp 343 billions.? (ends)