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17 Nov 2011 07:00
Bumi plc ("Bumi" or the "Company")
17 November 2011
For Immediate Release
Interim Management Statement
Production Report for Q3 2011
Bumi today issues its Production Report for the third quarter ended 30 September 2011.1
Highlights
·; Strong operating performances across all coal businesses.
·; Third quarter group production of 23 million tonnes, up 35% over Q3 2010.
·; Year-to-date total Group production of 62 million tonnes, 12% higher than year-to-date 2010. On track to meet 2011 target of 86 million tonnes of coal.
·; Realised prices for Q3 of $94 per tonne, an increase of 32% over Q3 2010.
·; Agreement on re-payment of the PT Bumi Resources $251 million loan to Bukit Mutiara and $231 million investment with Recapital.
·; Successful refinancing of $600 million of the $1.9 billion CIC loan by PT Bumi Resources, reducing its annual interest expense by around $72 million.
Development and Expansion
·; Group's expansion programme on track with 2014 target of 140 million tonnes.
·; Berau Coal's expansion plan to achieve 30 million tonnes annual production in 2014 is on schedule.
·; KPC's expansion plans to achieve its 2014 target of 70 million tonnes is on schedule. The Sangatta expansion is underway, with the second overland conveyor under construction, with expected completion in the first half of 2012. The construction of the Melawan crusher and conveyor is on track for completion in 2012. Work has commenced on upgrading the Bengalon facilities.
·; Arutmin's volume expansion to 40 million tonnes in 2014 is on track. Construction of the West Mulia and Asam-Asam coal processing plants and conveyors is underway with completion expected by the middle of 2012.
Financing update
·; Agreement has been reached on the re-payment of the PT Bumi Resources $231 million investment with Recapital in H1 2012. A schedule has been agreed for early re-payment of the PT Bumi $251 million loan to Bukit Mutiara 50% in 2012 and 50% in 2013. These items, which were fully disclosed in the Bumi plc listing prospectus of 17 June 2011, were discussed extensively at the Audit Committee and a schedule to secure re-payment of these PT Bumi loans and investments and to use the proceeds to pay down debt was presented by the Chief Financial Officer and approved by the plc Board at its meeting in Jakarta on 12 October.
·; It also is agreed that there will be progressive realisation and in all cases marking to fair value of the business development assets in PT Bumi Resources.
·; On 8 November 2011, Bumi plc announced that its associate, PT Bumi Resources, had completed pre-payment, 2 years early, of $600 million of the $1.9 billion outstanding loan to the China Investment Corporation. The effect of the debt refinancing will reduce PT Bumi's annual interest expense by around $72 million. The remainder of the $1.3 billion CIC debt is able to be pre-paid from October 2012 ($600 million) and October 2013 onwards ($700 million).
Berau Coal
Berau Coal produced 5.3 million tonnes of coal for the quarter, an increase of 23% over Q3 2010.
Year to date production was 14.3 million tonnes and is expected to meet the 20 million tonnes target for 2011.
Year to date stripping ratio was 9.6 bcm per tonne.
Berau Coal achieved an average selling price per tonne in the third quarter of $87.0/t.
Berau Coal | Q3 2011 | Q3 2010 | Q2 2011 | Q3 11 v Q3 10 | Q3 11 v Q2 11 |
Coal mined (mt) | 5.3 | 4.3 | 4.9 | +23% | +8% |
Sales (mt) | 5.5 | 4.6 | 5.0 | +20% | +10% |
FOB average selling price ($/t) | 87.0 | 61.5 | 77.6 | +41% | +12% |
Stripping ratio (bcm/t)1 | 9.8 | 8.1 | 9.3 | +21% | +5% |
1 Bank cubic metres (bcm) of overburden removed per tonne of coal mined
Kaltim Prima Coal (KPC)
KPC produced 11.6 million tonnes of coal, an increase of 29% from the third quarter of 2010.
Year to date production was 29.8 million tonnes, an increase of 6% over the prior period. Production at the Bengalon mine has been behind schedule and a portion of the site has now been subcontracted to a new contractor.
The year to date stripping ratio was 12.7 bcm per tonne.
KPC achieved an average selling price per tonne in the third quarter of $99.0/t.
KPC | Q3 2011 | Q3 2010 | Q2 2011 | Q3 11 v Q3 10 | Q3 11 v Q2 11 |
Coal mined (mt) | 11.6 | 9.0 | 10.0 | +29% | +16% |
Sales (mt) | 10.8 | 10.4 | 9.5 | +4% | +14% |
FOB average selling price ($/t) | 99.0 | 77.6 | 99.6 | +28% | -1% |
Stripping ratio (bcm/t)1 | 11.9 | 12.3 | 12.6 | -3% | -6% |
1 Bank cubic metres (bcm) of overburden removed per tonne of coal mined
Arutmin
Arutmin produced 5.8 million tonnes of coal, an increase of 71% from the third quarter of 2010.
Year to date production at Arutmin was 17.3 million tonnes, an increase of 17% over the prior period.
The year to date stripping ratio increased from 8.1 to 10.7 bcm per tonne due to new pits that are being opened.
Arutmin achieved an average selling price per tonne in the third quarter of $88.0/t.
Arutmin | Q3 2011 | Q3 2010 | Q2 2011 | Q3 11 v Q3 10 | Q3 11 v Q2 11 |
Coal mined (mt) | 5.8 | 3.4 | 5.5 | +71% | +5% |
Sales (mt) | 5.6 | 3.3 | 5.7 | +70% | -2% |
FOB average selling price ($/t) | 88.0 | 65.2 | 85.2 | +35% | +3% |
Stripping ratio (bcm/t)1 | 11.8 | 10.3 | 11.2 | +15% | +5% |
1 Bank cubic metres (bcm) of overburden removed per tonne of coal mined
For enquiries, please contact:
Bumi plc: +44 (0) 20 7201 7507
Nick von Schirnding
Finsbury: +44 (0) 20 7251 3801
Ed Simpkins
Charles Chichester
Production Report for the Third Quarter ended 30 September 2011 (unaudited)
Q1 2011
| Q2 2011 | Q3 2011 | Q3 2010 | Q3 11v Q3 10 | Q3 11 v Q2 11 | ||
Production Volumes | |||||||
Berau Coal - Lati | mt | 2.2 | 2.9 | 3.0 | 2.7 | +11% | +3% |
Berau Coal - Binungan | mt | 1.0 | 1.1 | 1.2 | 1.0 | +20% | +9% |
Berau Coal - Sambarata | mt | 0.9 | 0.9 | 1.1 | 0.6 | +83% | +22% |
Berau Coal - Total | mt | 4.1 | 4.9 | 5.3 | 4.3 | +23% | +8% |
KPC - Sangatta | mt | 7.4 | 8.9 | 10.5 | 8.1 | +30% | +18% |
KPC - Bengalon | mt | 0.8 | 1.1 | 1.1 | 0.9 | +22% | - |
KPC - Total | mt | 8.2 | 10.0 | 11.6 | 9.0 | +29% | +16% |
Arutmin - Senakin | mt | 1.5 | 0.9 | 0.9 | 1.0 | -10% | - |
Arutmin - Satui | mt | 0.9 | 1.0 | 1.0 | 0.3 | +233% | - |
Arutmin - Batulicin | mt | 0.9 | 0.7 | 1.1 | 0.4 | +175% | +57% |
Arutmin - Mulia | mt | 1.4 | 1.2 | 1.2 | 0.8 | +50% | - |
Arutmin - Asam-Asam | mt | 1.3 | 1.7 | 1.6 | 0.9 | +78% | -6% |
Arutmin - Total | mt | 6.0 | 5.5 | 5.8 | 3.4 | +71% | +5% |
Weighted Average Realised Prices | |||||||
Berau Coal | $/t | 71.3 | 77.6 | 87.0 | 61.5 | +41% | +12% |
Kaltim Prima Coal | $/t | 93.1 | 99.6 | 99.0 | 77.6 | +28% | -1% |
Arutmin | $/t | 77.1 | 85.2 | 88.0 | 65.2 | +35% | +3% |
Sales Volumes | |||||||
Berau Coal | mt | 4.6 | 5.0 | 5.5 | 4.6 | +20% | +10% |
Kaltim Prima Coal | mt | 9.1 | 9.5 | 10.8 | 10.4 | +4% | +14% |
Arutmin | mt | 4.8 | 5.7 | 5.6 | 3.3 | +70% | -2% |
Notes:
All figures are stated on a 100 per cent basis.
Bumi has an 85 per cent stake in PT Berau, which in turns owns a 90 per cent interest in Berau Coal.
Bumi has a 29 per cent stake in PT Bumi, which in turn owns a 65 per cent stake in KPC and a 70 per cent stake in Arutmin.
The weighted average realized prices per tonne of sales of coal is calculated by dividing the consolidated sales (on a Free On Board (FOB) basis) for the coal products by the consolidated sales volumes for the coal products for the periods presented. These weighted average realised prices fluctuate based upon changes in the product mix of the sales of the coal products.
Forward-looking statement
This announcement includes statements that are, or may be deemed to be, 'forward-looking statements'. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms 'believes', 'estimates', 'plans', 'projects', 'anticipates', 'expects', 'intends', 'may', 'will', or 'should' or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include matters that are not historical facts or are statements regarding the Company's intentions, beliefs or current expectations concerning, among other things, the Company's results of operations, financial condition, liquidity, prospects, growth, strategies, and the industries in which the Company operates. Forward-looking statements are based on current plans, estimates and projections, and therefore too much reliance should not be placed upon them. Such statements are subject to risks and uncertainties, most of which are difficult to predict and generally beyond the Company's control. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. The Company cautions you that forward-looking statements are not guarantees of future performance and that if risks and uncertainties materialise, or if the assumptions underlying any of these statements prove incorrect, the Company's actual results of operations, financial condition and liquidity and the development of the industry in which the Company operates may materially differ from those made in, or suggested by, the forward-looking statements contained in this announcement. In addition, even if the Company's results of operations, financial condition and liquidity and the development of the industry in which the Company operates are consistent with the forward-looking statements contained in this announcement, those results or developments may not be indicative of results or developments in future periods. A number of factors could cause results and developments to differ materially from those expressed or implied by the forward-looking statements including, without limitation, general economic and business conditions, industry trends, competition, commodity prices, changes in regulation, currency fluctuations, changes in business strategy, political and economic uncertainty. Subject to the requirements of the Prospectus Rules and the Listing Rules or any applicable law or regulation, the Company expressly disclaims any obligation or undertaking publicly to review or confirm analysts' expectations or estimates or to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any changes in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
Disclosure and Transparency Rules
This Interim Management Statement ('IMS') and Production Report is prepared to meet the requirements of the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority ('FSA') to provide additional information to shareholders. The IMS and Production Report should not be relied on for any other purpose or by any other party.
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