JAKARTA (TheInsiderStories) – A coal miner owned by tycoon Low Tuck Kwong, PT Bayan Resources Tbk (IDX: BYAN) prepared a capital expenditure (capex) around US$150 million in 2021, to support the development of various mining infrastructures. The issuer also announced has secured a coal sale and purchase contract commitment of around 66 percent of next year’ targets.
According to the director, Russel Neil, in an official statement released today, the company targets the 2021′ sales volume to be the same as this year’ guidance around 31 million tones (MT) of coal, in line with the construction of a 100 kilometers coal haul road to the Mahakam River in East Kalimantan. He adds, the production volume also to be unchanged from 2020 around 26 MT of coal.
He estimates that the company’ production increase will occur in 2022, in line with the completion of he construction of the haul road. Other director, Alastair Mcleod, added Bayan set higher spending caused has postponed some of this year’ investment due to the COVID-19 pandemic.
Earlier, the producer had cut the 2020 capex to around $90 million from the initial planned $110 million. In the first nine months of this year, the miner has absorbed the capex of $43.1 million, lower than the company’ estimation of $66.4 million. The funds were mostly used for mining infrastructure support projects, including a long haul road and a second ship loader installation at the Balikpapan Coal Terminal.
This year, Bayan estimates that he will earn $1.2 billion in revenue. For the fourth As of Nov. 5, the company has pocketed a coal sale and purchase contract commitment of 10.6 MT of coal.
“We estimated revenues is in the range of $1.2 billion with an average selling price of $39 to $40 per ton and production volume in the range of 31 million tones,” said Jenny Quantero, the issuer’ director and corporate secretary.
Until the third quarter of 2020, Bayan booked a revenues of $1 billion or dropped 12 percent compared to the same period in 2019 of $1.14 billion caused a significant decreased in the average selling price. The net profit also down 48.35 percent to $108.22 million from last year of $229.73 million.
In the same period, the sales volume recorded 26 MT of coal with an average selling price $38.6 a ton from 2019 reached 23.6 MT of coal with price of $48.3 per ton. From the production side, the issuer has produced 21.5 MT of coal with cash costs in the range of $30.3 a ton.In 2019, the miner produced 26 MT of coal with a cash production cost of $34.5 per ton.
Currently, 53.96 percent shares of Bayan owned by Kwong and the other portion owned by public around 30.08 percent.
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