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20240229_ADMR_Laporan Informasi dan Fakta Material_31582116_lamp1.pdf
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PT ADARO MINERALS INDONESIA TBK (IDX: ADMR) FY23 EARNINGS
NEWS RELEASE
Jakarta, February 29, 2024 – PT Adaro Minerals Indonesia Tbk (IDX: ADMR) today submitted
its consolidated financial statements for the year ending December 31, 2023 to OJK/IDX.
Mr. Christian Ariano Rachmat, President Director and Chief Executive Officer of PT Adaro
Minerals Indonesia Tbk said:
“Our 2023 financial and operational performance has been encouraging, underpinned by
strong production growth at Lampunut and growing market recognition for our Enviromet
product. A favorable price environment for metallurgical coal continues to support our
ASP, and combined with higher volume and cost discipline, our profitability improves.
Additionally, the group’s integrated logistics operations performed admirably despite the
‘El Nino’ weather conditions presenting challenges on the Barito River.
Finally, our visions in Kaltara continue to materialize, with the construction of our
aluminum smelter and its related infrastructure advancing as expected. We remain on
track for a 4Q2025 completion.”
Highlights
• Production volume in 2023 reached 5.11 million tonnes (Mt) with sales reaching 4.46 Mt, a
52% and 39% increase from 2022, respectively.
• Overburden removal volume increased 125% to 18.70 million bank cubic meter (Mbcm), with
our strip ratio reaching 3.66x compared to 2.47x in 2022.
• FY23 operational EBITDA of $573.50 million was 17% higher y-o-y supported by higher sales
volume. Core earnings increased 23% to $421.02 million. Operational EBITDA and core
earnings exclude non-operational and non-recurring items, and reflect the performance of our
core business.
• CAPEX in FY23 reached $134.02 million as we advanced construction of PT Kalimantan
Aluminium Industry’s (KAI) aluminium smelter and continued to progress with infrastructure
projects at PT Maruwai Coal (MC).
• KAI has completed the soil investigation, land levelling process, and piling works for the baking
furnace facilities in the aluminium smelter area.
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Financial Performance
(US$ thousand, except otherwise stated) FY23 FY22 % Change
Revenue 1,085,962 908,142 20%
Cost of revenue (502,750) (373,227) 35%
Gross profit 583,212 534,915 9%
Operating income 574,631 458,400 25%
Core earnings1 421,015 341,672 23%
Operational EBITDA2 573,502 490,543 17%
Total assets 1,695,420 1,286,625 32%
Total liabilities 657,370 717,317 -8%
Total equity 1,038,049 569,308 82%
Interest bearing debt 420,734 487,156 -14%
Cash 586,423 511,382 15%
Net debt (cash)3 (165,688) (24,226) 584%
Capital expenditure4 134,016 21,137 534%
Free cash flow5 194,576 374,250 -48%
Basic earnings per share (EPS) in US$ 0.0108 0.0081 33%
Financial Ratios
FY23 FY22 % Change
Gross profit margin (%) 53.7% 58.9% -5%
Operating margin (%) 52.9% 50.5% 2%
Operational EBITDA margin (%) 52.8% 54.0% -1%
Net debt (cash) to equity (x) (0.16) (0.04) 299%
Net debt (cash) to last 12 months operational EBITDA (x) (0.29) (0.05) 485%
Cash from operations to capex (x) 2.21 22.69 -90%
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Profit for the period, excluding non-operational, non-recurring items net of tax.
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EBITDA excluding non-operational, non-recurring items.
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After deduction of cash and cash equivalents.
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Capex spending defined as: purchase of fixed assets + payment for addition of exploration and evaluation asset.
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Operational EBITDA – taxes – change in net working capital – capital expenditure.
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Operating Segment
Revenue Profit for the period
(US$ Thousand) FY23 FY22 % Change FY23 FY22 % Change
Coal mining 1,084,004 905,445 20% 449,787 352,505 28%
Other services 3,881 4,655 -17% (8,236) (16,829) -51%
Metal processing - - - (708) - 100%
Elimination (1,923) (1,958) -2% - 62 -
ADMR 1,085,962 908,142 20% 440,843 335,739 31%
FINANCIAL PERFORMANCE ANALYSIS FOR FULL YEAR 2023 (FY23)
Revenue, Average Selling Price and Production
FY23 revenue increased 20% to $1.09 billion driven by a 39% increase in sales volume, which
balanced a 14% decline in ASP over FY22. After a period of weaker ASP in 2Q23 and 3Q23, ASP
rebounded in 4Q23 in line with the improvement in global metallurgical coal prices. ADMR’s high-
quality metallurgical coal product was sold to a diversified mix of steelmakers in Japan, China,
India, Indonesia, and South Korea.
Production volume in FY23 increased 52% to 5.11 Mt, supported by heavy equipment availability
and solid contractor performance. ADMR recorded overburden removal of 18.70 Mbcm, 125%
higher than in FY22, resulting in a strip ratio of 3.66x for FY23.
Cost of Revenue
Cost of revenue in FY23 increased 35% to $502.75 million mainly due to higher production
volumes. Royalties to the Government increased 4% to $158.23 million, mining costs increased
150% to $149 million, coal processing costs declined 52% to $23.58 million, while freight and
handling costs increased 36% to $116.59 million. Fuel consumption in FY23 increased 42% on
the back of increased activities, while fuel cost per litre was lower by 5% y-o-y. Coal cash cost
per tonne in FY23 decreased by 10% as our operations scale up and volume increases.
Operating Expenses
Operating expenses in FY23 declined by 88% to $8.84 million as we reversed a significant portion
of allowances for government charges from FY22 to be in line with new government regulations.
Selling and marketing costs in FY23 increased 50% to $13.76 million on the back of higher sales
volumes. Employee costs increased 131% to $8.75 million as the company’s workforce grows to
support expansion.
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Operational EBITDA and Core Earnings
Operational EBITDA in FY23 increased 17% to $573.50 million, and operational EBITDA margin
for the period was 53%. Core earnings in FY23 increased 23% to $421.02 million. Higher sales
volume in the period supported revenue generation, while we recorded significantly lower
operational expenses on the back of changes in regulation related to government charges.
Total Assets
Total assets increased 32% to $1.70 billion at the end of FY23, consisting of $884.55 million in
current assets and $810.87 million in non-current assets. Cash balance at the end of FY23
increased 15% to $586.42 million on the back of strong cash flow generation. Cash accounted for
35% of total assets.
Fixed Assets
Fixed assets as at the end of FY23 increased by 34% to $550.00 million mainly due to
investments in KAI’s aluminium smelter and infrastructure projects at MC. Fixed assets
accounted for 32% of total assets.
Mining Properties
Mining properties at the end of FY23 declined by 6% year-on-year to $174.06 million in-line with
production.
Total Liabilities
At the end of FY23, total liabilities declined by 8% to $657.37 million. Current liabilities increased
6% to $209.75 million driven by higher trade payable and accrued expenses related to expenses
for suppliers and contractors.
Non-current liabilities declined by 14% to $447.62 million at the end of FY23 as loans from
shareholders declined by 35% to $316.9 million, having repaid a total of $170.6 million. Bank
loans, net of loan financing costs, at the end of FY23 were $98.73 million as we began to draw
down loan for KAI.
Equity
At the end of FY23, equity increased 82% to $1.04 billion driven by the increase in retained
earnings which more than doubled to $854.76 million driven by higher profit.
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Cash Flows from Operating Activities
In FY23 our cash flows from operating activities declined by 38% to $296.59 million mainly driven
by higher payments to suppliers and higher royalties due to higher sales volume. Corporate
income tax payment also increased 127% to $150.23 million due to higher profitability.
Cash Flows from Investing Activities
We recorded net cash flows used in investing activities of $140.68 million in FY23, driven by a
significant increase in purchases of fixed assets of $133.47 million in FY23 related to MC’s
infrastructure projects and KAI’s aluminium smelter construction.
Capital Expenditure and Free Cash Flow
Capital expenditure in FY23 was $134.02 million mainly for the construction of the aluminium
smelter under KAI and MC’s infrastructure projects. KAI alone accounted for $97 million of this
figure. Free cash flow in FY23 declined 48% to $194.58 million as we executed our investment
plans.
Upon completion, the infrastructure upgrade projects will support our medium-term volume
target of 6 Mtpa and will enable us to reliably deliver our volume commitments to customers.
The first phase of KAI’s aluminium smelter is expected to reach its commercial operations date
(COD) in 2025 – which will diversify our revenue streams.
Cash Flows from Financing Activities
Net cash flows used in financing activities in FY23 declined 31% to $82.49 million, as in the period
we made loan repayment to shareholders of $170.6 million and drew down $87.58 million of bank
loans, net of loan financing costs.
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PT ADARO MINERALS INDONESIA TBK (IDX: ADMR) FY23 ACTIVITIES
REPORT
Operational Highlights
• Production volume in FY23 reached 5.11 million tonnes (Mt) with sales reaching 4.46 Mt, a
52% and 39% increase from FY22, respectively, with sales exceeding our FY23 target of 3.8
Mt – 4.3 Mt.
• Overburden removal volume increased 125% to 18.70 million bank cubic meter (Mbcm), with
a strip ratio of 3.66x compared to 2.47x in FY22 as we restarted the operation at PT Lahai
Coal (“LC”) and opened up more areas at PT Maruwai Coal’s (“MC”) Lampunut mine.
• Our ongoing investments in facilities and infrastructure to support our 6 Mtpa volume target in
2025 continue to progress. We completed the tender process for our second barge-loading
conveyor and Lampunut Waterfront Camp in 4Q23 and construction is targeted to start in
1Q24.
• In 4Q23, PT Kalimantan Aluminium Industry (“KAI”) continued to advance the construction of
the aluminium smelter. KAI has completed the soil investigation, land levelling process, and
piling works for the baking furnace facilities in the aluminium smelter area.
ADMR’S FY24 Guidance
• Sales volume: 4.9 million tonnes – 5.4 million tonnes
• Strip ratio: 3.6x
• Capital expenditure: $175 million – $250 million. This capital expenditure target includes
our equity investments in KAI’s aluminium smelter.
OPERATIONAL PERFORMANCE
PT MARUWAI COAL (MC) AND PT LAHAI COAL (LC)
• Metallurgical coal production volume in 2023 reached 5.11 million tonnes (Mt), a 52%
increase over 2022, with sales reaching 4.46 Mt, 39% higher than in 2022, which was also
affected by the restart of operations from LC in 2H23 and was able to ramp up its
production to 0.28 Mt for the year.
• Overburden removal reached 18.70 Mbcm in 2023, 125% higher than in 2022, leading to
a strip ratio of 3.66x in 2023, 48% higher than 2022.
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4Q23 vs. 4Q23 vs. FY23 vs.
Units 4Q23 3Q23 4Q22 FY23 FY22
3Q23 4Q22 FY22
Overburden Removal Mbcm 4.89 6.27 -22% 2.26 116% 18.70 8.32 125%
Maruwai Mbcm 3.02 4.65 -35% 2.26 33% 15.22 8.32 83%
Lahai Mbcm 1.87 1.62 16% - 100% 3.49 - 100%
Production Volume Mt 1.13 1.44 -21% 0.81 40% 5.11 3.37 52%
Maruwai Mt 0.93 1.36 -32% 0.81 15% 4.83 3.37 43%
Lahai Mt 0.20 0.08 157% - 100% 0.28 - 100%
Sales Volume Mt 1.45 1.19 21% 1.02 43% 4.46 3.20 39%
Maruwai Mt 1.25 1.19 5% 1.02 24% 4.26 3.20 33%
Lahai Mt 0.20 - 100% - 100% 0.20 - 100%
• Japan accounted for 32% of sales in 2023, with India and China also seeing growth. Our
sales portion to Indonesia increased to 13%, in line with domestic demand. The chart
below shows our sales destination in 2023.
Korea
6%
Indonesia
13% Japan
32%
India
18%
China
31%
• Investment in our facilities and infrastructure is ongoing, through the upgrading of our
hauling roads, expansion of fuel storage facilities, and staff accommodation. Moreover,
we have appointed a contractor for the construction of our second barge loading conveyor
facility. This expansion will increase our barge loading capacity.
• Furthermore, supporting our planned production increase to 6 Mtpa, MC has completed
the tender process for the staff facilities expansion in the Lampunut area. Construction is
planned to start within the first quarter of 2024.
PT KALIMANTAN ALUMINIUM INDUSTRY (KAI)
• As part of Adaro Group's commitment to support the green economy and pursue
sustainable growth, ADMR, through KAI, is actively developing opportunities in the mineral
sector, with a focus on downstream minerals processing.
• After completing land clearing, in 4Q23 KAI was focused on the construction stage of the
aluminium smelter project. KAI has completed the soil investigation, land levelling, and
piling work for the baking furnace facilities in the aluminium smelter area.
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• Moving forward to 1Q24, KAI will focus on piling and foundation activities in the aluminium
smelter area.
HEALTH, SAFETY, AND ENVIRONMENT (HSE)
In 2023, MC and LC experienced four lost time injuries (LTI), which resulted in a lost-time injury
frequency rate (LTIFR) of 0.32, with a severity rate of 12.12. Total man-hours worked in 2023 for
MC and LC were 12,376,864. Meanwhile at KAI there were no LTI in 2023, and thus LTIFR and
SR were zero. Total man-hours worked in 2023 for KAI were 7,573,781.
CORPORATE ACTIVITIES
Share Purchase of PT Alam Tri Cakra Indonesia
In December 2023, we subscribed new shares issued by PT Alam Tri Cakra Indonesia (ATCI)
which was majority owned by PT Adaro Energy Indonesia Tbk, with the total amount of
Rp376,687,000,000, resulting in us owning 90.84% of the shares in ATCI. This capital increase
by ATCI is to prepare ATCI to capture business opportunities, if any, in the areas that are in line
with the purposes and objectives of ADMR.
Awards
In 4Q23, MC received awards for their exceptional operations and performance, with details as
follows:
• Blue PROPER Award from the Ministry of Environment and Forestry.
• Two Gold awards at the National Quality and Productivity Workshop (TKMPN) XXVII.
• Appreciation of Dewi Sartika at Temu Pendidik Nusantara event, in the Pemimpin
Merdeka Belajar category.
• Silver award at Indonesia Sustainable Development Goals Award 2023 for its contribution
on SDGs 15.3 about Land Conservation (Konservasi Darat).
• Gold award at Indonesia Sustainable Development Goals Award 2023 for its achievement
on SDGs 4.c about Capacity Building for Educators at All Levels (Peningkatan Kapasitas
Tenaga Pendidik di Semua Tingkatan).
• Gold award at Indonesia Sustainable Development Goals Award 2023 for its contribution
on SDGs 8.3.(a) about Enhancing Business and Job Opportunities for Communities
(Peningkatan Peluang Usaha dan Kerja Bagi Masyarakat).
###
These materials have been prepared by PT Adaro Minerals Indonesia Tbk (the “Company”) and have not been
independently verified. No representation or warranty, expressed or implied, is made and no reliance should be placed
on the accuracy, fairness or completeness of the information presented or contained in these materials. The Company
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or any of its affiliates, advisers or representatives accepts no liability whatsoever for any loss howsoever arising from
any information presented or contained in these materials. The information presented or contained in these materials
is subject to change without notice and its accuracy is not guaranteed.
These materials contain statements that constitute forward-looking statements. These statements include descriptions
regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results
of operations and financial condition of the Company. These statements can be recognized by the use of words such
as “expects,” “plan,” “will,” “estimates,” “projects,” “intends,” or words of similar meaning. Such forward-looking
statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ
from those in the forward-looking statements as a result of various factors and assumptions. The Company has no
obligation and does not undertake to revise forward-looking statements to reflect future events or circumstances.
These materials are for information purposes only and do not constitute or form part of an offer, solicitation or invitation
of any offer to buy or subscribe for any securities of the Company, in any jurisdiction, nor should it or any part of it form
the basis of, or be relied upon in any connection with, any contract, commitment or investment decision whatsoever.
Any decision to purchase or subscribe for any securities of the Company should be made after seeking appropriate
professional advice.
For further information please contact:
Investors
Thomas Coombes | Thomas.Coombes@adaro.com
Media
Febriati Nadira | Febriati.Nadira@adaro.com
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Christian Ariano Rachmat
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PT Maruwai Coal
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PT Lahai Coal
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PT Alam Tri Cakra Indonesia In
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Ministry of Environment and Forestry.
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