ARMS.L Regulatory News (ARMS)

BUMI PLC - Trading Update

PR Newswire

London, January 4

* Bumi plc launches major review of capex programme

* Mine plan being reviewed against a backdrop of weak coal prices

* Berau on track to meet 21mt production for 2012 - production expected to

increase to 23mt in 2013

Bumi plc sets out below key factors affecting its operating performance inrespect of 2012.

Average realised selling prices

The Company has been impacted by weaknesses in the coal price, particularlyduring the second half of the year. As a result realised selling prices for theyear are expected to be around $70.0/t compared to $81.4/t for 2011.

Production

Production for Berau is expected to be in line with previous guidance at 21million tonnes of coal for the full year. 2013 production is forecast at 23mt,an increase of 9.5%.

Costs

Production unit costs for the second half of 2012 are expected to be in linewith the first half. Higher fuel and contractor costs have been mitigatedthrough a review of the mine plan and consequent reduction in stripping ratioand hauling distances. Further cost saving initiatives are underway.

PT Bumi Resources Tbk results

PT Bumi Resources Tbk recently issued its audited results, under IndonesianGAAP, for the nine months ended 30 September 2012. The net loss for the periodis reported as $655m and Bumi plc will be consolidating its 29.2% share of thisloss (after appropriate IFRS and consolidation adjustments) in its incomestatement for 2012, having classified its investment in Bumi Resources as anassociate up to 30 September 2012. As previously announced, this classificationhas been modified to an investment, the effect of which reclassification willbe a material, non-cash charge.

Outlook

Given the weak coal price environment, the Company has focused on lower costpits and deferred some of its expansion plans, particularly the overlandconveyor and power plant. The Company continues to target a medium termproduction target of 30mt per annum.

Commenting on the full year, Nick von Schirnding, Chief Executive Officer said"Our near term strategy is very clear: to effect a separation from BumiResources and to maximise value in our operating subsidiary, Berau. We havetaken immediate steps to mitigate the on-going impact of lower coal prices byadjusting the mine plan for Berau, targeting lower stripping ratios andreducing hauling distances. Expansion must be profitable and sustainable and webelieve that the conditions are not right for the c$288m proposed overlandconveyor and power plant projects at Binungan to proceed at this juncture.These projects will be revisited as market fundamentals start to improve. Inthe meantime we will focus on further initiatives to drive down our cost baseand ensure we have optimal operating management in place across our business."

An updated investor presentation was published today on the Bumi plc website.

Full year results will be published on 21 March 2013.

For enquiries, please contact:

Bumi plc:

Jayesh Pankhania +44 (0)20 7201 7506

Finsbury:

Edward Simpkins +44 (0) 20 7251 3801