Indo Tambang secures US$1.8 billion contract

IDX-coal miner, PT Indo Tambangraya Megah Tbk (ITMG) has secured a contract to sell 19 million tons of coal or about 70 percent of its sales target this year with the average sale price of US$98 per ton, Investor Daily reported.

With the average sale price of $98 per ton, the company would receive about $1.8 billion from the sales of the coal.

According to a research issued by Trimegah Securities, ITMG would sell the other 30 percent of its production or about 8 million tons at a market price. With such sale composition, the falling coal price in the world market will not really affect the company?s revenues this year.

Trimegah estimated that the average sale price of ITMG will decline by 3 percent to $94 per ton this year, and by 13 percent to $82 per ton in 2013.

In the first quarter of this year ITMG booked total revenues of $577.9 million, a 23.4 percent increase from $468,33 million in the same period, last year.

Operating profits rose to $169.18 million from $117.43 million, while net profit increased to $121.32 million from $94.94 million.

ITMG?s production rose by 10 percent to 5.3 million tons in the same period. The production growth declined because of the falling production in Jorong and Kitadin Embalout blocks. The production of the Jorong mine is expected to decline by 1 million tons this year.(*)