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Interim Management Statement

4th Nov 2013 07:02

RNS Number : 0856S
Bumi plc
04 November 2013
 



 

Bumi plc ("Bumi" or the "Company")

4 November 2013

For Immediate Release

Interim Management Statement

 Production Report for Q3 2013

 

 

Bumi today issues its Production Report for the third quarter ended 30 September 2013, in respect of PT Berau.

Highlights

· Third quarter production of 6.0 million tonnes, up 10% over Q3 2012

· Year to date production of 17.5 million tonnes, up 15.9% over 9 months to 30th September 2012

· Production cost of sales down 6% to $38.1/t over 9 months to 30th September 2012

· On track to reach 2013 production target of 23 million tonnes

Nick von Schirnding, CEO of Bumi plc said: "We remain very focused on operational improvements and efficiencies, which is our priority in the current weak coal price environment. We have achieved a 6% cost reduction this quarter compared with last year and made further progress on a number of other cost reduction initiatives. I am pleased that our front bench has been further strengthened with the arrival in October of Paul Fenby and Keith Downham as CFO and Chief Mining Officer respectively. While coal prices have moved off their lows, the near term outlook remains challenging. Our forecasts for full year production and financial targets remain unchanged."

Cost Reduction Update

 

Good progress continues to be made in respect of the Company's asset optimisation programme, to reduce costs and improve efficiencies.

 

Fuel consumption for both mine fleet and shipping has been reduced by around 3% through the use of additives and better fuel management. Further fuel initiatives are currently being worked on, including improved leakage detection. The Company spent $235m on fuel in 2012.

 

Annualised exploration costs have been reduced by 30% through maximizing the utilisation of drilling equipment. The number of rigs has been reduced; shifts have been increased, while the overall number of geologists has also been reduced.

 

In terms of barging productivity, sea trials have been completed on 330ft barges with a load capacity of 10,000 tonnes, against current 270ft barges with a 6000 tonne load capacity. Timelines for implementation are currently under review.

 

Marketing costs on the sale of coal will reduce by 0.5% from January 2014 and discussions on further reductions are underway. Discussions are also at an advanced stage with a number of mining contractors to effect a rate reduction for 2014. An updated life of mine plan is being finalised before the year end, which will aim to further enhance the efficiency of current mining methods.

 

Capex for 2013 was originally forecast to be $70m. Cuts in capex during the year will mean the forecast for 2013 will now be approximately $50m. The lower than planned capex has come mainly from reduced spending on hauling roads and bridges, as well as support infrastructure. Given the current challenging market conditions, capex plans for 2014 are currently under review, with anticipated further cuts.

Production Report

Berau Coal mined 6.1 million tonnes of coal in the third quarter, 10% higher than in Q3 2012. Berau's stripping ratio for the year to date reduced to 8.8bcm/t, a reduction of 14% over the same period last year. The third quarter average selling price was $58.5/t, which is 18% lower than the same period in 2012. Berau is on target to mine 23 million tonnes for 2013.

PT Berau: Operating Data

9 months to

30 Sept 2013

9 months to

30 Sept 2012

Year to

31 Dec 2012

YTD Q3 13 v YTD Q3 12

Coal mined (millions of tonnes)

17.5

15.1

21.0

16%

Sales (millions of tonnes)

17.5

14.6

21.1

19%

FOB average selling price ($/t)

60.4

74.9

70.9

(19%)

Production cost of sales ($/t)

38.1

40.52,3

38.72,3

6%

Stripping ratio (bcm/t)1

8.8

10.3

9.6

14%

 

The effect of IFRIC20 on the Production cost of sales is given below:

PT Berau: Production Cost of Sales

9 months to

30 Sept 2013

9 months to

30 Sept 2012

Year to

31 Dec 2012

YTD Q3 13 v YTD Q3 12

Production cost of sales (excluding IFRIC20) ($/t)

36.8

39.22,3

37.82,3 

6%

IFRIC20 cost increase ($/t)

1.3

1.3

0.9

-

Production cost of sales (including IFRIC20) ($/t)

38.1

40.52,3

38.72,3

6%

 

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

 

 

Summary of key operating data

9 months to

30 Sept 2013

9 months to

30 Sept 2012

12 months ended 31 December

2012

Berau

Coal mined (millions of tonnes)

17.5

15.1

21.0

Lati

7.8

7.8

10.7

Binungan

5.9

3.9

5.4

Sambarata

3.8

3.4

4.9

Sales volumes (millions of tonnes)

17.5

14.6

21.1

 

Production Report for the Third Quarter ended 30 September 2013 (unaudited)

 

Q2

Q3

Q4

Q1

Q2

Q3

Full Year

Q3

H1

2012

2012

2012

2013

2013

2013

2012

2013 v 2012

2013 v 2012

Coal mined

Berau Coal

 

 

 

 

 

 

 

 

 

Lati

mt

2.8

2.9

2.9

2.3

2.8

2.7

10.7

(5.4%)

3.6%

Binungan

mt

1.4

1.3

1.5

1.8

2.1

2.0

5.4

48.2%

50.8%

Sambarata

mt

1.3

1.3

1.5

1.2

1.3

1.3

4.9

2.3%

17.2%

Total

mt

5.5

5.5

5.9

5.3

6.2

6.0

21.0

9.6%

19.3%

Average realised prices

Berau Coal

$/t

75.2

71.3

61.8

60.4

62.3

58.5

70.9

(17.9%)

(19.9%)

Sales volumes

Berau Coal

mt

5.3

4.8

6.5

5.5

6.0

6.0

21.1

24.8%

16.8%

 

Bumi plc's ownership interest is as follows. Berau Coal: 76.2%.

For enquiries, please contact:

 

Bumi plc: +44 (0) 20 7201 7511

Sean Wade

 

Finsbury: +44 (0) 20 7251 3801

Ed Simpkins

 

Certain figures in the tables above have been rounded.

 

Forward-looking statement

 

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.

 

 

Disclosure and Transparency Rules

 

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.

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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