Bumi Resources (BUMI) Expects Coal Production to Reach 80 Million Tons in 2024

 JAKARTA - Coal issuer PT Bumi Resources Tbk (BUMI) estimates that its coal production volume can reach 80 million tons in 2024. Director of Bumi Resources Dileep Srivastava said that BUMI has not yet finalized its performance target for next year. However, he said, it is reasonable to expect BUMI's coal production volume to reach 80 million tons next year. "It is quite reasonable to expect BUMI's coal production volume to reach 80 million tons," said Dileep in BUMI's public expose, Wednesday (6/12/2023). He continued, when compared to last year, BUMI produced 78-80 million tons of coal. Meanwhile, this year, Dileep sees that BUMI's coal production volume can approach 80 million tons.

BUMI also sees coal prices to increase slightly until the end of this year. BUMI expects an increase in coal prices as the world's geopolitical situation is uncertain, and the winter season will bring increased demand for coal. By the end of September 2023, BUMI recorded total production of 56.2 million tons, an increase compared to the same period last year of 53.7 million tons. The increase in production is due to improved weather conditions and improved contractor performance.

BUMI also estimates coal prices to reach US$80 per ton to US$90 per ton in the company's guidance for this year. Meanwhile, BUMI Director Andrew Beckham said BUMI has good coal reserves and capacity at KPC and Arutmin. Thus, the only capital expenditure that BUMI needs for next year is capital expenditure for replacement. "And usually capital expenditure is between 50 cents to US$1 per ton of coal. So capital expenditure of around US$14 million to US$18 million next year should be enough," he said.
Sources : Bisnis.com- Dec 04.23

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