Ahead of the 2024 political year, PT ABM Investama Tbk (ABMM), a coal mining company, emphasizes that its business expansion does not depend on a particular year. As for 2023, ABM Investama will continue to focus on business development after acquiring a 30% stake in PT Golden Energy Mines Tbk (GEMS) at the end of 2022.
ABMM Director Adrian Erlangga stated that ABMM’s business at the beginning of this year was smooth and in line with expectations. This means that there are no special challenges faced by the Company even though coal prices are currently starting to decline compared to last year. As for the political year, Adrian stressed, ABMM’s business expansion would still be in line with the long-term planning and strategy that had been previously set. “This year we are still focusing on business development related to the acquisition of GEMS shares at the end of 2022. Apart from that, we are also looking for greener investment alternatives,” he explained to Kontan.co.id, Sunday (2/4).
He acknowledged that ABMM had started conducting studies and looking for investment information that was most relevant to the competencies and the existing ecosystem. According to Kontan.co.id records, throughout this year, ABMM has prepared capital expenditure (capex) of around US$ 200 million for the purchase of heavy equipment. The sources of capex funds come from internal and banking. With the support of this capital expenditure, Adrian once said, his party is pursuing revenue growth of 15% -20% compared to last year and net profit will grow 25%. “Because our line of business is closely related to coal, our financial targets are also related to prices and dynamics in the coal industry,” he said in an additional note.
From a business and operational point of view, ABMM will maintain the stability of coal sales at last year’s level, namely at 12.7 million tons. Likewise with the market and customers, ABMM is still focused on maintaining existing consumers. As for mining services, ABMM will increase the volume of overburden removal by around 25%. Compared to last year’s position with a volume of 203 million bank cubic meters (bcm).
Image Source: industri.kontan.co.id