Toba Bara plans flat coal output this year
Tuesday, March 17 2015 - 01:55 AM WIB
IDX-listed coal mining firm PT Toba Bara Sejahtera Tbk said that said it plans a flat to slightly lower output of 6-8 million tons this year, compared to 8.1 million tons last year amid the lingering downturn in the global coal market.
The company said in a statement Monday that for 2015, it would focus its resources and efforts in maintaining business sustainability and resilience.
?For the past few years, the company has been continuously improving cost efficiencies by running executable mine plans that meet the combined objective of achieving profitable targets and sustaining long term reserves. In line with this objective, the company is expected to target production output of 6-8 million tons in 2015,? it said.
Toba Bara reported that output last year jumped by 24.6 percent to 8.1 million tons from 6.5 million tons in 2013, thanks to significantly higher volume contributions from its Trisensa Mineral Utama (TMU) and Indomining (IM) concessions in East Kalimantan.
It added that while its Adimitra Baratama Nusantara ABN concession, also in East Kalimantan, remains to be the main production contributor, its contribution has declined to 54.3 percent from 64.6 percent of total output.
Toba Bara said that despite the 4.4 percent decline in its average selling price to $63.7 per ton, the company managed to book an 18.5 percent increase in sales from $421.9 million in 2013 to $500.0 million in 2014 on the back of a solid 23.4 percent increase in sales volume over the same period.
Elsewhere, the company reported a 20.9 percent rise in cost of goods sold from $342.3 million in 2013 to $413.8 million in 2014 stemmed from the company?s significant increase in production volume despite a decrease in FOB cash cost.
Meanwhile, EBITDA surged by 14.7 percent from $58.7 million in 2013 to $67.3 million in 2014, resulting from predominantly higher sales volume and better mine plan execution amidst the weaker ASP, while lowering mining costs in the process. However, the weaker ASP had slightly lowered EBITDA margin by 2.9 percent, the company said.
Toba Bara said that in 2014, the company sold its coal mainly to Asian countries, such as China, Korea, India, and Taiwan. Some of the large reputable international traders and end-users such as power generation companies make up the company?s main customers.
The company said it plans to continue with its on-going combined strategy of building a well-diversified customer base (increasing more sales exposure to end user customers), securing good quality sales backed by quality buyers, engaging in favorable terms of payment, and improving quality control on product delivery. To date, the company said it has secured more than 60 percent of its 2015 sales volume target.
After completing its 2013 program of undergoing infrastructure capacity upgrade from the then 13 million tpa (tons per annum) to become 16 million tpa, the company plans to allocate CAPEX of US$ 10-14 million for 2015 to support its on-going sustainability strategy. The planned CAPEX is expected to mainly strengthen operational facilities and equipment (conveyor and heavy equipment) and partially, for land compensation.
Editing by Reiner Simanjuntak