Resources Prima?s coal output up 10.2% despite bad weather
Thursday, March 2 2017 - 01:16 AM WIB
Petromido|Khalsa
SGX-listed coal mining firm Resources Prima Group Limited, which operates mines in Indonesia?s East Kalimantan Province, said that coal production increased by 128,166 tons, or 10.2 percent, to 1,387,285 tons last year (FY2016) from 1,259,119 tons for in 2015 despite bad weather condition in the latter part of the year.
The company said in a statement last week that the main determinant of coal production is the mine plan and related stripping ratio. Mining activity and the stripping ratio for FY2016 were in accordance with the group?s mine plan.
However, coal production was adversely impacted by the unusually heavy rainfall at the group?s mine site since September 2016, the statement said.
Coal sales increased by 266,411 tons, or 23.2 percent, to 1,415,471 tons for FY2016 from 1,149,060 tons for FY2015. Coal sales were adversely impacted by lower production primarily due to the unusually heavy rainfall as noted above.
In FY2016, revenue decreased by 16.5 percent (US$11.5 million) to $57.9 million from US$69.4 million in FY2015.
Revenue from coal sales decreased by 16.3 percent ($11.0 million) to $56.3 million from $67.3 million mainly due to a decrease in both the sales price of 10.7 percent from $44.8 per ton to $40.0 per ton and a decrease in sales quantity of 5.1 percent from 1,492,275 tons to 1,415,471 tons in FY2016.
Revenue from facility usage decreased by 22.9 percent ($0.5 million) to $1.6 million in FY2016 from $2.1 million in FY2015 as a result of lower throughput from a third party mine owner.
The gross profit decreased by $6.7 million, mainly due to a decrease in revenues. The decrease in revenue resulted from a decline in both sales quantity and average selling price of coal.
The gross profit margin decreased to 15.5 percent from 22.7 percent. The decrease in gross profit was due primarily to a decrease in both sales quantity and average selling price of coal.
Revenue is generated primarily by subsidiary PT Rinjani Kartanegara, through the sale of coal from its coal mining activities. Rinjani sells its coal through an offtake agreement with a sole trader. Since November 2015 such sales were transacted through a subsidiary, RPG Trading Pte. Ltd. The price of such coal sales is based on international prices. Additional revenue is generated from the use of Rinjani?s coal facilities by a third party mine owner.
PT Rinjani has been granted a Production Operation IUP permit to carry out coal mining operations in an area covering approximately 1,933 hectares in the District of Loa Janan and Loa Kulu, Kutai Kartanegara Regency, Province of East Kalimantan. The tenure for the Mining Concession Area is held under the Production Operation IUP which was granted on November 24, 2009 and is valid until November 24, 2021.
Editing by Reiner Simanjuntak