30th Apr 2014 12:47
LONDON (Alliance News) - Asia Resource Minerals PLC Wednesday said it achieved strong production and cost savings in its first quarter but its average selling price fell during the period.
The Indonesian thermal coal mining company, which completed its separation from Bumi PLC last month, said production increased 15% to 6.1 million tonnes for the three months ended March 31, from 5.3 million tonnes the previous year.
The company said its production increased as the stripping ratio at its Berau Coal site increased 5%, but this amount was 3% less than it had planned.
As a result, Asia Resource Minerals said it is operationally on track to reach its 2014 production target of 25.75 million tonnes, before a cap from the Indonesian Mining authorities, the level of which is still being discussed.
The company added that ongoing cost saving initiatives are beginning to have an impact and its first quarter production cost of sales fell 3.6% to USD38 per tonne from USD39.4 per tonne.
It said negotiations have been finalised with a number of mining contractors for a reduction in rates, fuel consumption continues to be reduced through a number of initiatives, barging productivity continues to improve and both marketing costs and exploration costs are also down.
However, the company also noted that its average realised prices fell 3.3% to USD58.4 per tonne from USD60.4 per tonne.
Asia Resource Minerals said its financial position remains broadly unchanged from December 31, 2013 with the exception of a receipt of USD501 million from the disposal of its stake in PT Bumi On March 25 and noted that it still intends to return at least USD400 million to shareholders in due course following its separation from Bumi.
Asia Resource Minerals shares were down 2.2% to 191.75 pence Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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