Resource Alam revises output target
Wednesday, August 29 2012 - 10:14 AM WIB
IDX-listed Resource Alam Indonesia Tbk recently stated to revise its production guidance to between 4.3 and 4.6 million tons for the FY2012, some 2 to 10 percent up only from last year's 4.2 million tons.
The weak global market, the company said in a statement to the IDX, was one of the key reasons.
"Although we have been gearing up our infrastructure capacity to cater for a much higher production volume this year, we believed that it is in the company?s long term interest to take a more conservative approach right now and scale down production in a difficult market cycle such as now," it said.
It nevertheless remains optimistic, said that it has seen signs of market improvements in recent weeks.
"And our excess capacity will put us in a good position to push production further should the coal market improve in the 4th quarter of 2012."
Resource Alam's Net Profit After Tax (NPAT) margin for the first 6 months of 2012 stood at 17.1%, boasting healthy balance sheet with no bank loan and robust cash reserve.
Combined with its wholly owned subsidiary PT. Insani Bara Perkasa (3rd Gen CCOW, with 24,477 hectares), the company's additional 5 (five) recently acquired projects is expected to increase its total concession size to around 55,000 hectares.
Editing by Er Audy Zandri