GEMS anticipates slower Q2, Q3 output, seeks new markets
Wednesday, June 18 2014 - 01:32 AM WIB
IDX-listed coal miner PT Golden Energy Mines Tbk (GEMS) expects production in the second and third quarters of this year to be slower than in the first quarter due to seasonal factors.
GEMS President Director Fuganto Widjaja said on Tuesday that production in the second quarter would be slightly lower than the 2.4 million tons output made in the first quarter due to the seasonal rainfall during the quarter ending June.
He added that output in the following quarter would also be slightly lower due to the Muslim festivities of Ramadhan fasting month and the Idul Fitri celebration.
GEMS via subsidiary PT Borneo Indobara owns a 24,100 ha coal concession in Tanah Bumbu Regency, South Kalimantan, and through another subsidiary PT Karya Cemerlang Persada owns a 2,610 ha concession in Bungo Regency, Jambi.
The company has set coal production to increase to 7 million tons this year from 5.8 million tons last year, and sales volume to reach 10 million tons, up from 8.1 million tons.
To help achieve the full-year production target, GEMS aims to push production in the final quarter, Fuganto said.
The company expects revenue this year to increase by 13 percent to Rp 5 trillion from Rp 4.3 trillion last year.
Elsewhere, Fuganto was quoted by Bisnis Indonesia as saying that the company is seek new alternative markets as part of strategy to cope with the current downturn in the global coal market following weaker demand in key markets of China and India.
Fuganto said that GEMS is looking into new markets such as the Philippines, Myanmar and Vietnam. ?We?re participating in tenders in these countries,? Fuganto said.
Editing by Reiner Simanjuntak