PT Golden Energy Mines Tbk (GEMS) realized that coal production and sales volume grew by double digits in the period January-June HI 2023. As for the remainder of this year, GEMS still sees bright business prospects despite slumping coal prices.
GEMS Corporate Secretary Sudin Sudiman explained that the realization of coal production until June 2023 was 20.4 million tons, 16% higher compared to the same period last year,
“Meanwhile, actual sales of 20.2 million tons were 12% higher compared to the same period last year,” he explained to Kontan.co.id quoted on Thursday (9/8).
Seeing the realization of positive production and sales volumes in the middle of this year, Sudin is optimistic about the business prospects in the second half of 2023, even though coal prices fell quite sharply in the first half of 2023.
However, according to him, the opportunity for GEMS is still wide open and the demand for coal at home and abroad is still high.
Even so, there are still challenges facing GEMS in the remainder of the year. Some of the challenges are controlling costs properly so that the company is still able to maintain financial performance amid pressures from global coal prices.
As of June 2023, GEMS has realized capital expenditures of US$ 9.2 million, most of which are for the development of port facilities, hauling roads and digital technology development.
Throughout this year GEMS is targeting a sales volume of 40 million to 41 million tons of coal. As much as 65% -67% of the sales target is allocated for the export market.
GEMS’s market share this year is still the same as last year, namely mainly to China, India and ASEAN.
On a consolidated basis, GEMS has obtained approval from the Ministry of Energy and Mineral Resources (ESDM) to produce 40.3 million tons of coal based on the Work Plan and Budget (RKAB).
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In detail, the consolidated production plan comes from the production plan for Borneo Indobara (BIB) 36 million tons, Bara Sentosa Lestari (BSL) 2 million tons, and PT Kuansing Inti Makmut (KIM) 2.3 million tons.
A total of 0.9 million tonnes of the sales target of another 40-41 million tonnes is planned to be realized through a trading scheme.
Image source >>> DOK/GEMS