28th Mar 2014 14:04
LONDON (Alliance News) - Asia Resource Minerals PLC Friday said its pretax loss narrowed in 2013 following the completion of the former Bumi PLC's separation process this week.
The Indonesian thermal coal mining company said its pretax loss narrowed to GBP169 million from GBP2.43 billion in 2012, despite a 6.9% fall in revenues to USD1.43 billion from USD1.53 billion.
Asia Resource Minerals said its full-year production exceeded its target and increased 12% to 23.5 million tonnes of coal, from 21.0 million tonnes, but noted that its average realised price of coal fell 16% to USD59.6 per tonne from USD70.9 per tonne.
The company said the 2012 figures included two major exceptional costs: a USD815 million impairment charge related to its separation and a USD1.39 billion charge for an investment that was reclassified.
On Tuesday, the company said it completed its separation from Bakrie Group, effectively ending a year-long process to split up Nat Rothschild's former Indonesian thermal coal company Bumi PLC.
Asia Resource Minerals said it has now disposed of its 29.2% interest in Bumi Resources to the Bakrie Group for USD501 million, and RACL, a company owned by Asia Resource Minerals Chairman Samin Tan, has bought the Bakrie Group's entire 23.8% interest in the Asia Resource Minerals for a previously reported USD223 million.
As a result of the two payments being made, the two parties are now separated and Samin Tan, who has agreed to step down as chairman, is left with a 47.6% interest in Asia Resource Minerals. Financier Nat Rothschild remains the second largest shareholder in the company with a 20.81%, according to Morningstar.
Bumi was created three years ago as Nat Rothschild and the Indonesian Bakrie Group joined forces in an attempt to create one of the world's most powerful coal mining groups.
However, very soon the company was in turmoil as infighting among Rothschild, the Indonesian family business and independent board members, allegations of financial irregularities, and a fall in coal prices hit Bumi.
In December, shareholders of Bumi approved the separation of the company after a long power struggle, and it changed its name to Asia Resource Minerals.
The company said Friday that Chris Walton has now become chairman, while Samin Tan remains on the board and joins the Nomination Committee. It said it is continuing with its plans to return at least USD400 million to shareholders following the separation.
Asia Resource Minerals shares were up 1.2% to 237.75 pence Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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