News Column

Asia Resource Minerals Reiterates Production, Costs Guidance

August 28, 2014

Hana Stewart-Smith

LONDON (Alliance News) - Asia Resource Minerals PLC Thursday reiterated that its full-year costs remain on track to be lower than the previous year, and reiterated its full-year production guidance, as it narrowed its pretax loss in the half-year to the end of June.

The company, formerly known as Bumi PLC, posted a pretax loss of USD12 million, narrowed from USD85 million in the previous year, despite seeing revenue decline to USD706 million from USD722 million.

The company split from the Bakrie Group in March, and posted a USD351 million profit on the sale of its shares in PT Bumi, which offset a USD306 loss on the reclassification the share from an investment in an associate to an available for sale asset. As a result of the sale, it paid a 115 pence special dividend to shareholders.

Asia Resource Minerals said that conditions remain tough for the thermal coal market as it is still in over-supply and has more production growth forecast for 2014.

It reiterated its guidance for 24.2 metric tonnes of production, and said its capital expenditure is likely to fall into the range of USD25 million to USD30 million against its original budget of USD41 million.

The company revised its board and appointed a new chairman following the split from Bumi; as well as combining the role of the company's Chief Executive and its subsidiary PT Berau Coal Energy Tbk's president director to lean down the management reporting structure.

Former Chief Executive Nick von Schirnding stepped down in June, after the company decided that the role needed to be based in Indonesia.

"I can reassure shareholders that despite the changes at management and Board level over recent months, we remain resolutely focused on the continued delivery of our strategy, in particular reducing costs," said Chief Executive Amir Sambodo in a statement.

Shares in Asia Resource Minerals were trading 0.4% lower at 66.50 pence per share Thursday afternoon.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Alliance News

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters