Toba Bara expects revenue to grow despite weak market

IDX-listed coal miner PT Toba Bara Sejahtera Tbk expects revenue to keep growing this year despite the lingering weak coal price, Kontan reported on Monday.

The paper quoted Toba Bara Head of Investor Relations, Iwan Sanyoto as saying that the price for 70 percent of this year?s sales volume has been locked in under one-year contract, with only the remaining 30 percent are based on spot price.

Iwan said that with this strategy, the company?s revenue will be shielded against further decline in coal price. In the first quarter of this year, the company saw revenue increased by 28.5 percent to US$122 million compared to the same period of last year.

He said that the price of the company?s contracted coal is set based on the Newcastle Index which ranges between US$85-90 per ton.

Elsewhere, Iwan said the company has set a target for production from three subsidiaries including PT Adimitra Baratama Nusantara, PT Indomining, and PT Trisensa Mineral Utama to increase by around 20 percent to 7.2-7.8 million tons this year, from 6.5 million tons last year. (*)