H1 2013 Financial & Operating Highlights
Production of 11.5mt for the period up 19% from H1 2012
On track to produce 23mt for the full year
Realised coal price for H1 2013 fell 20% to $61.4/t
Production cost of sales down 10% to $37.1/t
Major cost reduction initiatives underway
EBITDA of $74m (H1 2012: $139m)
Operating Loss of $11m (H1 2012: Profit $52m)
Group Net Debt of $389m (31 December 2012: $514m)
Strategy to deliver shareholder value
Further operational efficiencies targeted through asset optimisation programme
Near term target of 30mt annual production - key licence for Binungan obtained in August 2013
Continued enhancement of financial systems and controls
Review of capital structure to reduce interest cost and lower debt
Separation transaction from the Bakrie Group and PT Bumi, now well advanced
New Chief Financial Officer and Chief Mining Officer appointed, to be based in Jakarta
Nick von Schirnding, Chief Executive of Bumi plc said:
"There have been two areas of focus at PT Berau in the first half of 2013. One has been a major effort to address governance and financial control issues identified earlier this year. We carried out an extensive review of the financial position of Berau which has resulted in increased alignment with Bumi plc policies and procedures and the enhancement of our financial systems and controls. This process is ongoing and further improvements will be made during the year. The second is the development of a revised mine plan in conjunction with an asset optimisation exercise to profitably increase coal production, improve efficiencies and reduce costs. This, together with the appointment of a new Chief Financial Officer and Chief Mining Officer, will further help us achieve our goals.
Good progress continues to be made on the transaction to separate from the Bakrie Group and Bumi Resources. The circular to shareholders is at an advanced stage and the Company expects it will be sent to shareholders in September 2013".
