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12 Feb 2014 07:00
12 February 2014
For Immediate Release
Asia Resource Minerals plc ("ARMS" or the "Company")
Interim Management Statement
Production Report for Q4 2013
Asia Resources Minerals today issues its Production Report for the fourth quarter ended 31 December 2013, in respect of PT Berau.
Highlights
· Full year production of 23.5 million tonnes, up 11.7% for the year
· Full year production exceeded our target of 23 million tonnes
· Fourth quarter production of 5.9 million tonnes, up 1.1% year on year
· Production cost of sales $38.6/t for the year ended 31 December, $40.0/t for the fourth quarter
Nick von Schirnding, CEO of Asia Resource Minerals plc said: "I am pleased to report that we achieved production of 23.5mt in 2013, slightly ahead of previous guidance. The Company's mine plan envisages growth in production for 2014 of around 10% and discussions with the Indonesian authorities about increasing the current quota beyond 23mt are on-going. We remain very focused on cost reduction and asset optimisation, which remains our priority in the continuing weak coal price environment."
Capital Expenditure Update
Good progress continues to be made in respect of the Company's asset optimisation programme, which is aimed at reducing costs and improving efficiency. Discussions with a number of contractors are at an advanced stage regarding rates for 2014 and a further update will be given at the Company's Full Year results on 28 March 2014.
Capital expenditure (including exploration and evaluation expenditure) for 2013 was originally forecast to be $87m. Our focus on efficiency during the year resulted in capital expenditure falling by $49m to $38m. The lower-than-planned capital expenditure arose mainly from reduced spending on hauling roads and bridges, as well as on support infrastructure. Given the current challenging market conditions, capital expenditure plans for 2014 have also been materially reduced.
Production Report
Berau Coal mined 5.9 million tonnes of coal in the fourth quarter, 1% higher than in Q4 2012. Berau's stripping ratio for the year was 8.8bcm/t, a reduction of 8% over the same period last year. The fourth quarter average selling price was $57.2/t, which is 8% lower than the same period in 2012.
The shift of production from Lati to the lower strip ratio Binungan area continued during the quarter resulting in Lati production being reduced by 12.4% year on year. However, this was more than offset by a 38.6% year on year increase in production at Binungan.
Production Report for the Fourth Quarter ended 31 December 2013 (unaudited)
PT Berau: Operating Data (unaudited) | Q4 2013 | Q4 2012 | Q3 2013 | Q4 '13 v Q4 '12 | FY 2013 | FY 2012 | FY '13 vs FY '12 |
Coal mined (mt) | 5.9 | 5.9 | 6.1 | 1% | 23.5 | 21.0 | 12% |
Sales (mt) | 5.9 | 6.5 | 6.0 | (9%) | 23.3 | 21.1 | 11% |
FOB average selleing price ($/t) | 57.2 | 61.8 | 58.5 | (8%) | 59.6 | 70.9 | (16%) |
Production cost of sales ($/t) | 40.0* | 34.7 | 39.7 | (15%) | 38.6 | 38.72,3 | - |
Stripping ratio (bcm/t)1 | 8.7 | 7.6 | 9.0 | (13%) | 8.8 | 9.6 | 8% |
\* The full year production target of 23mt was reached a week ahead of the end of the year and in line with Indonesian mining regulations, PT Berau therefore stopped producing for the last week of December 2013. Fixed costs continued to be incurred, thus impacting production cost of sales per tonne for the quarter.
The effect of IFRIC20 on the Production cost of sales is given below:
PT Berau: Production Cost of Sales
| Q4 2013 | Q4 2012 | Q4 13 vs Q412 | FY13 | FY12 | FY13 vs FY12 |
Production cost of sales (excluding IFRIC20) ($/t) | 39.2 | 34.72 | (12.8%) | 37.4 | 37.82 | 1.2% |
IFRIC20 cost increase ($/t) | 0.8 | - | - | 1.2 | 0.9 | 35.1% |
Production cost of sales (including IFRIC20) ($/t) | 40.0* | 34.72 | (15.2%) | 38.6 | 38.72,3 | - |
1. Bank cubic metres (bcm) of overburden removed per tonne of coal mined
2. Restated for impact of 'other exceptional costs'
3. Restated for impact of IFRIC 20
Q4 2012 | Q1 2013 | Q2 2013 | Q3 2013 | Q4 2013 | Full Year 2012 | Full Year 2013 | Q4 2013 v 2012 | ||
Coal mined | |||||||||
Berau Coal | |||||||||
Lati | mt | 2.9 | 2.3 | 2.8 | 2.7 | 2.6 | 10.7 | 10.4 | (12.4%) |
Binungan | mt | 1.5 | 1.8 | 2.1 | 2.0 | 2.0 | 5.4 | 8.0 | 38.6% |
Sambarata | mt | 1.5 | 1.2 | 1.3 | 1.3 | 1.3 | 4.9 | 5.1 | (9.3%) |
Total | mt | 5.9 | 5.3 | 6.2 | 6.0 | 5.9 | 21.1 | 23.5 | 1.1% |
Average realised prices | |||||||||
Berau Coal | $/t | 61.8 | 60.4 | 62.3 | 58.5 | 57.2 | 70.9 | 59.6 | (7.6%) |
Sales volumes | |||||||||
Berau Coal | mt | 6.5 | 5.5 | 6.0 | 6.0 | 5.9 | 21.1 | 23.3 | (9.2%) |
Production cost of sales | |||||||||
Berau Coal | $/t | 34.7 | 39.4 | 35.2 | 39.7 | 40.0* | 38.72,3 | 38.6 | (15.2%) |
1. Bank cubic metres (bcm) of overburden removed per tonne of coal mined
2. Restated for impact of 'other exceptional costs'
3. Restated for impact of IFRIC 20
- ENDS-
For enquiries, please contact:
Asia Resource Minerals plc
Sean Wade +44 (0) 20 7201 7511 | RLM Finsbury
Ed Simpkins / Charles O'Brien +44 (0) 20 7251 3801 |
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