Jakarta,- PT Adaro Minerals Indonesia Tbk (ADMR) continues to develop markets for its high-quality metallurgical coal products, and has been gaining interest from customers in many countries, including Indonesia, Japan and China.

The company's production volume in the first half of the year rose 17% to 2.98 million tonnes and overburden stripping rose 37% to 10.36 million bcm, resulting in a stripping ratio of 3.48x for the half-year.

ADMR President Director Christian Ariano Rachmat said metallurgical coal prices moved volatile in the first half of 2024, but the company still achieved satisfactory operational performance, thanks to effective execution, increased production, and expansion in sales penetration.

Average selling price (ASP) in the year to June 2024 was down 8% from 2023, which was in line with the decline in metallurgical coal prices. Meanwhile, production volume reached 2.98 million tonnes while sales reached 2.59 million tonnes, up 17% and 43% respectively from 1H23.

‘This performance reflects the joint efforts of all parties in the company, including PT Kalimantan Aluminium Industry with its ongoing construction progress,’ he said in an official statement, quoted on Wednesday (16/10).

Operating EBITDA until the first half of 2024 was recorded at US$ 329.5 million, equivalent to a 40% increase compared to 2023 in the same period, mainly due to an increase in sales volume.

Core profit rose 50% to US$ 252.5 million. Operating EBITDA and core profit exclude non-operating components, thus reflecting the performance of the core business.

In line with the company's investment plan, capital expenditure rose 233% year-on-year to US$ 143.0 million. Investments in facilities and infrastructure to support volume increases showed good progress.

‘Construction activities at PT Kalimantan Aluminium Industry (KAI) also continued, with progress made on the aluminium smelter area, jetty area, and permanent mess area for employees,’ he said.

Citing its financial performance, ADMR's operating revenue in the first half of 2024 rose 31% to US$607.0 billion, due to a 43% increase in sales volume to 2.59 million tonnes, offset by an 8% decrease in ASP.

Along with the increase in revenue, cost of revenue also rose 32% to US$277.1 million, mainly due to higher production and sales volumes.

Royalties to government fell 9% to US$ 74.1 million due to lower prices, while mining costs rose 24% to US$ 86.5 million, coal processing costs rose 30% to US$ 12.9 million, and transport and handling costs rose 24% to US$ 64.2 million. Fuel costs rose 18% on higher volumes, while cash coal costs per tonne in June 2024 fell 14%.

Operating expenses to June 2024 fell 43% to US$20.6 million as the company did not set aside reserves for expenses related to payment obligations to the government due to the allocation of sales to the domestic market. In addition, employee costs rose 19% to US$5.3 million due to the addition of labour to support the company's expansion.

Total assets rose 20% to US$1.61 billion as of the end of June 2024, consisting of current assets of US$598.8 million and non-current assets of US$1.01 billion. Cash balances fell 12% to US$399.2 million. Cash comprises 25% of total assets.