COALspot.com: Combined Coal Sales of Bumi Resources rose to 87.7 million tons in FY’16 compared with 79.3 million tons in FY’15. According to Bumi’s corporate Information released on 8 February 2017, Bumi’s combined coal sales rose by 10.6% year on year.
Arutmin Indonesia one of the Bumi’s coal mines, has sold 28.6 million tons of coal in 2016, up 15.3%. Arutmin has sold 24.8 million tons in FY’15. KPC, likewise, increased sales by 8.4% to 59.1 million tons in FY’16 compared with 54.6 million tons in FY’15.
Quarter On Quarter
According to Bumi’ press release, the combined Coal Sales increased by 10.2% to 23.1 million tons in Q4’16 compared with 20.9 million tons in Q4’15. Arutmin Sales increased by 35.5% to 8.4 million tons in Q4’16 compared with 6.2 million tons in Q4.15. KPC Sales were steady at 14.7 million tons in Q4’16.
Coal Output
The Company increased coal output by 6.5% to 86.5 million tons in FY’16 compared with 81.2 million tons in FY’15.
Quarter On Quarter
The Company’s coal output for Q4’16 has increased 12.3% to 23.8 million tons compared with 21.2 million tons for the same period in 2015.
Arutmin, one of the coal mines of BUMI has increased coal output by 37.2% to 9.0 million tons in Q4’16 compared with 6.5 million tons in Q4’15. KPC, another coal miner under BUMI has increased Coal output by 1.2% to 14.9 million tons in Q4’16 compared with 14.7 million tons in Q4’15.
Average Fob Selling Price
According to Bumi’s press note, the average selling price (ASP) of coal in FY’16 was $42.1/ton compared with $44.8/ton in FY’15 or declined by 6.0% - due to market conditions and execution of previous contracts. However, Q4’16’ ASP shows an upward trend to $47.7/ton compared to $42.1/ton in Q4’15 and $40.5/ton in Q3’16.
Production Cash Cost / Ton Coal Mined
The company says the average production cash cost has sharply reduced to $27.0/ton Coal Mined in FY’16 (compared with $34.6/ton in 2014 and $30.2/ton in 2015) – or by $7.6/ton Coal Mined since Dec’14 – a significant reduction – due to
a) Fuel and spare procurement efficiencies
b) Lower mining operating costs
c) Higher production rate at an Arutmin mine
Outlook Full Year 2017
The company further says, the outlook for coal price in 2017 is optimistic and benchmark Coal Price presently is around $80/ton.
The Company expects to exceed production between 5% - 7% and its Average Selling Price at least 30% above FY’16 levels.
60% of Sales Volume is already committed and this is expected to rise to 75% at end of Q1’17 with finalization of annual contracts with Japan.
Prospects Bright – 2017
FY’17 Net Income prospects are bright. Sales are expected to be 5% - 7% higher than FY’16 Coal Price higher by at least 30% vs. FY’16 Increasing efficiencies and economies of scale, the company concluded in its latest press note.