SGX welcomes GEAR to mainboard

By Romel S. Gurky

Singapore Exchange (SGX) welcomed on Monday Golden Energy and Resources Limited (GEAR) to the exchange?s mainboard under the stock code ?AUE?.

Backed by the Sinar Mas Group, one of Indonesia?s largest conglomerates, GEAR collectively owns the rights to mine more than two billion tons of thermal coal resources, with coal reserves of more than 750 million tons, as at October 31, 2016.

?We are encouraged by the positive outlook of the coal market. Indonesian President Joko Widodo?s 35GW program to provide additional power capacity will drive domestic demand further,? said Dwi Suseno, Executive Director and Deputy Group CEO of GEAR in a statement issued by the SGX.

He said the company has continued to ramp up coal production to ride on the strong demand for coal. GEAR recently received approval from the Indonesian Government to raise coal production from its Borneo Indobara (BIB) concession area to 7.5 million tons per annum, and subject to demand and government approval, to further increase production output of BIB concession to 12.0 million tons in 2017. ?These developments bode well for GEAR,? he said.

Chew Sutat, Head of Equities and Fixed Income, SGX, said, ?We are delighted to welcome the listing of Golden Energy and Resources, which will become the largest coal mining company listed on Singapore Exchange, by market capitalization. This listing will not only offer investors an opportunity to capture opportunities in Indonesia?s coal mining sector, but also bolster SGX?s Mineral, Oil and Gas cluster.?

With a market capitalization of S$1.6 billion at listing, GEAR brings the total number of SGX-listed companies in the Mineral, Oil and Gas sector to 26, with combined market capitalization of S$3.6 billion. GEAR opened at $0.71 on Monday.

Editing by Reiner Simanjuntak