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10 May 2012 07:00
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Bumi plc ("Bumi" or the "Company")
10 May 2012
For Immediate Release
Interim Management Statement
Β Production Report for Q1 2012
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Bumi today issues its Production Report for the first quarter ended 31 March 2012.1
Highlights
Β·; First quarter group coal mined 20.0 million tonnes, up 9% over Q1 2011
Β·; Operating performance impacted by seasonal high level of rainfall in Kalimantan during the 1st quarter and a strike at one of PT Bumi's contractors
Β·; Production unit costs higher, mainly due to increased fuel costs and higher stripping ratio at Berau, but expected to decline going forward as various infrastructure projects under development are brought into commercial production
Β·; Higher realised prices for Q1 2012 over Q1 2011
Development and Expansion
Β·; Group's expansion programme on track with 2014 target of 140 million tonnes.
Β·; On track to meet 2012 target of 23 million tonnes of coal for PT Berau and 75 million tonnes for PT Bumi.
Β·; PT Berau expansion: approval to construct 42 kilometre overland conveyor at Binungan
Β·; KPC's Sangatta expansion: second overland conveyor, which will increase capacity by 32 million tonnes per annum, successfully installed during Q1 in respect of direct shipment. Full facility, including expanded stockpile, to be completed in Q3 2012. Melawan overland conveyor expected to be completed in Q4 2012.
Β·; At Arutmin the Asam-Asam and West Mulia ports now completed and in operation. Construction of coal processing plants and conveyors are underway with completion expected in June 2012 for Asam-Asam and September 2012 for West Mulia.
Financing update
Β·; In March PT Berau successfully issued a $500 million, 5 year bond at a fixed rate of 7.25% to refinance a $340 million loan facility and to part fund a major capex programme
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For enquiries, please contact:
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Bumi plc: +44 (0) 20 7201 7507
Nick von Schirnding
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Finsbury: +44 (0) 20 7251 3801
Ed Simpkins
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Berau Coal
Berau Coal mined 4.1 million tonnes of coal for the quarter, marginally higher than in Q1 2011. Berau's operations were impacted by high levels of rainfall as well as a higher stripping ratio which impacted costs. Higher levels of output for the rest of the year are expected to improve cost performance. The average selling price per tonne in the first quarter was $78.3/t. Year to date stripping ratio was 10.6 bcm per tonne. Berau is forecast to mine 23 million tonnes for 2012.
Berau's expansion plans include the construction of the Binungan 42 kilometre overland conveyor, one of the longest in the coal industry. The conveyor will be constructed over two phases with commissioning expected in phases. The introduction of the conveyor is expected to significantly reduce trucking and related fuel costs.
Berau Coal | Q1 2012 | Q1 2011 | Q4 2011 | Q1 12 v Q1 11 |
Coal mined (mt) | 4.1 | 4.1 | 5.1 | 1% |
Sales (mt) | 4.6 | 4.6 | 5.0 | 0% |
FOB average selling price ($/t) | 78.3 | 71.3 | 89.1 | 10% |
Production cost of sales ($/t) | 41.2 | 32.6 | 44.9 | 26% |
Stripping ratio (bcm/t)1 | 10.6 | 9.7 | 9.4 | 9% |
1 Bank cubic metres (bcm) of overburden removed per tonne of coal mined
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Kaltim Prima Coal (KPC)
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KPC mined 8.4 million tonnes of coal, marginally higher than Q1 2011. The months of January and February were impacted by heavy rainfall with March reflecting improved production levels. The average selling price in the first quarter was $100.4/t, an increase over the same period in 2011. The year to date stripping ratio was 13.0 bcm per tonne, a decline from 13.7 in the first quarter of 2011.
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Production at the Bengalon mine has been behind schedule and a portion of the site has now been subcontracted to a new contractor.
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KPC | Q1 2012 | Q1 2011 | Q4 2011 | Q1 12 v Q1 11 |
Coal mined (mt) | 8.4 | 8.3 | 10.7 | 0% |
Sales (mt) | 9.0 | 9.1 | 11.0 | (1%) |
FOB average selling price ($/t) | 100.4 | 92.8 | 100.8 | 8% |
Production cost of sales ($/t) | 57.0 | 52.1 | 44.8 | 9% |
Stripping ratio (bcm/t)1 | 13.0 | 13.7 | 11.2 | (5%) |
1 Bank cubic metres (bcm) of overburden removed per tonne of coal mined
Arutmin
Arutmin mined 7.5 million tonnes of coal, a 25% increase over the first quarter of 2011.The average selling price in the first quarter was $82.9/t, an increase over the same period in 2011. The year to date stripping ratio was 8.3 bcm per tonne, a reduction of 10%.
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Arutmin | Q1 2012 | Q1 2011 | Q4 2011 | Q1 12 v Q1 11 |
Coal mined (mt) | 7.5 | 6.0 | 7.4 | 25% |
Sales (mt) | 6.8 | 4.8 | 6.6 | 43% |
FOB average selling price ($/t) | 82.9 | 77.1 | 83.9 | 8% |
Production cost of sales ($/t) | 43.0 | 40.3 | 38.6 | 7% |
Stripping ratio (bcm/t)1 | 8.3 | 9.3 | 9.0 | (10%) |
1 Bank cubic metres (bcm) of overburden removed per tonne of coal mined
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Production Report for the First Quarter ended 31 March 2012 (unaudited)
Bumi plc interest | Q1 | Q2 | Q3 | Q4 | Q1 | Full Year | Q1 12 v Q1 11 | ||||
2011 | 2011 | 2011 | 2011 | 2012 | 2011 | ||||||
Coal mined | |||||||||||
Berau Coal | |||||||||||
Lati | mt | 76.2% | 2.2 | 2.9 | 3.0 | 2.7 | 2.1 | 10.8 | (2%) | ||
Binungan | mt | 76.2% | 1.0 | 1.1 | 1.1 | 1.4 | 1.2 | 4.6 | 21% | ||
Sambarata | mt | 76.2% | 0.9 | 1.0 | 1.1 | 1.0 | 0.8 | 4.0 | (12%) | ||
Total | mt | 76.2% | 4.1 | 4.9 | 5.3 | 5.1 | 4.1 | 19.4 | 1% | ||
Kaltim Prima Coal | |||||||||||
Sangatta | mt | 19.0% | 7.5 | 8.9 | 10.5 | 9.4 | 7.3 | 36.3 | (2%) | ||
Bengalon | mt | 19.0% | 0.9 | 1.0 | 1.5 | 1.2 | 1.0 | 4.6 | 20% | ||
Total | mt | 19.0% | 8.3 | 10.0 | 12.0 | 10.7 | 8.4 | 41.0 | 0% | ||
Arutmin | |||||||||||
Senakin | mt | 20.4% | 1.5 | 0.8 | 0.9 | 1.5 | 1.6 | 4.8 | 8% | ||
Satui | mt | 20.4% | 0.9 | 1.0 | 1.0 | 1.3 | 1.6 | 4.3 | 72% | ||
Batulicin | mt | 20.4% | 0.9 | 0.7 | 1.1 | 1.0 | 0.8 | 3.7 | (15%) | ||
Mulia | mt | 20.4% | 1.4 | 1.2 | 1.2 | 1.1 | 1.0 | 5.0 | (25%) | ||
Kintap (West Mulia) | mt | 20.4% | - | - | - | 0.1 | 0.3 | 0.1 | - | ||
Asam Asam | mt | 20.4% | 1.3 | 1.7 | 1.5 | 2.1 | 1.9 | 6.6 | 47% | ||
Sarongga | mt | 20.4% | - | - | - | 0.3 | 0.2 | 0.3 | - | ||
Total | mt | 20.4% | 6.0 | 5.5 | 5.8 | 7.4 | 7.5 | 24.7 | 25% | ||
Average realised prices | |||||||||||
Berau Coal | $/t | 71.3 | 77.5 | 86.4 | 89.1 | 78.3 | 81.4 | 10% | |||
Kaltim Prima Coal | $/t | 92.8 | 99.6 | 100.4 | 100.8 | 100.4 | 98.6 | 8% | |||
Arutmin | $/t | 77.1 | 85.2 | 88.0 | 83.9 | 82.9 | 83.8 | 8% | |||
Sales volumes | |||||||||||
Berau Coal | mt | 4.6 | 5.0 | 5.5 | 5.0 | 4.6 | 20.0 | 0% | |||
Kaltim Prima Coal | mt | 9.1 | 9.5 | 10.8 | 11.0 | 9.0 | 40.5 | (1%) | |||
Arutmin | mt | 4.8 | 5.7 | 5.6 | 6.6 | 6.8 | 22.8 | 43% |
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Notes:
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All figures are stated on a 100 per cent basis.
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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 realised price per tonne of coal sold is calculated by dividing the consolidated sales (on a Free On Board (FOB) basis) for the coal products by the 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.
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The figures used in the calculations are often more precise than the rounded numbers shown in the tables.
Forward-looking statement
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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.
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Disclosure and Transparency Rules
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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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