ITMG sees flat production next year

IDX-listed coal mining company PT Indo Tambangraya Megah Tbk (ITMG) projected production next year to be relatively flat at 30 million tons, or a slight 1.7 percent increase from the 29.5 million tons estimated for this year, amid the lingering weak coal price.

ITMG Finance Director Edward Manurung also said that the company has no plan to make acquisition next year. ?The coal industry is still in a downturn, so there is no significant expansion,? he said in a statement obtained Monday.

With the relatively flat output target, ITMG plans to allocate only US$100 million for capital expenditure (capex) next year, a slight increase from $84 million allocated for this year. ?We expect to only utilize about $60 million, or less, of the 2014 capex plan,? Edward said.

The capex will only be used to maintain existing infrastructure facilities.

ITMG, which exports most of its coal mainly to China, India, and Japan, has set a revenue target of US$2.01-2.07 billion this year, assuming average coal price of $68-70 per ton. (*)