Bumi Resources Minerals reports EBITDA and profit increase
Thursday, March 31 2011 - 03:45 AM WIB
The Company booked a 113% increase in EBITDA to Rp. 120 billion from its 1H 2010 results. This was mainly driven from the fees generated by its 100% owned subsidiary,
Bumi Resources Japan Company Limited ("BRJ"), for marketing the coal and mineral products in Japan.
BRMS' net profit increased dramatically by 337% to Rp. 764 billion from its 1H 2010 results. This was due to the increased profit recorded by BRMS' associated company, PT Newmont Nusa Tenggara ("NNT").
Yuanita Rohali, the CFO of BRMS, said," We have successfully completed the Company's initial public offerings ("IPO") in December 2010. The IPO fund enables us to recapitalize and deleverage our balance sheet.
On top of that, based on the Indonesian Accounting GAAP (PSAK) no 21, the US$ 546 million mandatory convertible note conversion by PT Bumi Resources Tbk ("BUMI") into equity ownership in BRMS has been booked in our consolidated 31 December 2010 financial accounts. Consequently, our Company's Debt to Equity Ratio improved significantly to 0.1x.
We practically operating the Company at zero debt level." Kenneth Farrell, the CEO of BRMS, added, ?We are happy to report our strong 2010 financial results to our shareholders. The IPO fund not only successfully deleveraged our balance sheet, but it also allows us to monetize our existing assets.
Currently the main revenue and cash flow drivers come from our investments in BRJ and NNT. NNT's copper and gold production showed 10% and 31% increase in 2010 from the previous year. In the next 24 months, we expect to commence the first commercial productions from Bumi Mauritania S.A. (iron ore) and PT Dairi Prima Minerals (zinc and lead). Our reserves and resources estimates at PT Gorontalo Minerals and PT Citra Palu Minerals (both are mainly copper and gold) will also be JORC standardized by end of year 2012. We will do our best to continue adding value for our shareholders in the future." (ends)