PT Indo Tambangraya Megah Tbk (ITMG) has no plans to change its coal production target by 2020. The company is still focused on strengthening its business position amid uncertainty over coal prices.
For information, this year ITMG is targeting a coal production volume of 20.1 million tons. The realization of production in the first quarter of 2020 was recorded at 4.5 million tons, down 22.4% year on year (yoy).
Director of Investor Relations of PT Indo Tambangraya Megah Tbk (ITMG) Yulius Gozali said that his party has not been able to convey the realization of coal production in the first half of this year, considering that the financial statements are still in the audit process.
ITMG’s decline in coal production in the first quarter was due to this year’s lower production volume target compared to last year’s 23.6 million tons.
Even though there is a decrease in the realization of production, ITMG confirms that it does not intend to revise the 2020 production target.
On the other hand, Yulius said that ITMG’s capital expenditure (capex) allocation in the remainder of this year will experience a decline.We are doing this as an effort to conserve internal cash in the face of the global economic slowdown, he said, Tuesday (4/8).ITMG provides a capex of US $ 49.9 million this year, down from last year’s capex of US $ 121.9 million.In the first quarter of 2020, ITMG absorbed a capex of US $ 5.6 million. The capex is for the purchase of equipment and machinery to mining infrastructure.ITMG also allocates part of the capex for road and port construction in the Trubaindo and Bharinto mining areas.ITMG management will still rely on internal cash as a source of funding for this year’s capex.
Apart from that, ITMG seeks to strengthen coal sales, particularly in the export market.In the first quarter of 2020, the main support for ITMG’s revenue was from coal sales to Southeast Asia (non-Indonesia) as well as India and Pakistan amounting to US $ 132.39 million.Then followed by sales to Taiwan, China, Hong Kong, and South Korea at US $ 88.1 million.ITMG also sold coal to Japan and Australia for US $ 74.66 million and US $ 1.69 million, respectively.