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PT ADARO MINERALS INDONESIA TBK (IDX: ADMR) 1H24 EARNINGS
NEWS RELEASE
Jakarta, August 26, 2024 – PT Adaro Minerals Indonesia Tbk (IDX: ADMR) today submitted its
consolidated financial statements for the six-month period ending June 30, 2024 to the OJK/IDX.
Our President Director, Mr. Christian Ariano Rachmat, said:
“The first half of 2024 saw a volatile pricing environment for metallurgical coal, yet our
operational performance was exemplary, due mostly to strong execution, production gains
and greater sales penetration. Our performance reflects the collective effort of everyone
in the company, including at PT Kalimantan Aluminium Industry where construction
continues to advance.”


Highlights
•   1H24 operational EBITDA of $329.5 million was 40% higher over 1H23, mainly driven by
    higher sales volume. Core earnings increased by 50% to $252.5 million. Operational EBITDA
    and core earnings exclude non-operational items and reflect the performance of our core
    business.
•   Our average selling price (ASP) in 1H24 weakened by 8% compared to 1H23 due to lower
    metallurgical coal price.
•   Production volume in 1H24 reached 2.98 million tonnes (Mt) with sales reaching 2.59 Mt, a
    17% and 43% increase from 1H23, respectively.
•   In line with our investment plan, capital expenditure increased 233% year-on-year to $143.0
    million. Our ongoing investments in facilities and infrastructures to support higher volume
    continue to progress. Construction activities at PT Kalimantan Aluminium Industry (KAI) also
    continues, with progress being made at the aluminium smelter area, the jetty area, as well as
    the permanent dormitory area.




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                                                  Financial Performance
    ($ thousand, except otherwise stated)                                         1H24             1H23           Change

    Revenue                                                                        607,038         463,606          31%
    Cost of revenue                                                              (277,067)       (210,252)          32%
    Gross profit                                                                   329,971         253,354          30%
    Operating income                                                               309,590         219,150          41%
    Core earnings1                                                                 252,544         168,351          50%
    Operational EBITDA2                                                            329,458         235,051          40%
    Total assets                                                                 1,608,817       1,337,263          20%
    Total liabilities                                                              325,184         578,594          -44%
    Total equity                                                                 1,283,633         758,668          69%
    Interest bearing debt                                                          103,386         336,884          -69%
    Cash                                                                           399,163         454,349          -12%
    Net debt (cash) 3                                                            (295,777)       (117,464)         152%
    Capital expenditure4                                                           143,018          42,940         233%
    Free cash flows5                                                               223,552         121,560          84%
    Basic earnings per share (EPS) in US$                                            0.0061         0.0040          53%


                                                       Financial Ratios
                                                                                 1H24              1H23            Change
     Gross profit margin (%)                                                        54.4%             54.6%         -0.3%
     Operating margin (%)                                                           51.0%             47.3%          3.7%
     Operational EBITDA margin (%)                                                  54.3%             50.7%          3.6%
     Net debt (cash) to equity (x)                                                  (0.23)            (0.15)        53.6%
     Net debt (cash) to last 12 months operational EBITDA (x)                        (0.43)           (0.50)        -14%
     Cash from operations to capex (x)                                                 2.02             2.67        -25%




1
  Profit for the period, excluding non-operational items net of tax.
2
  EBITDA excluding non-operational items.
3
  After deduction of cash and cash equivalents.
4
  Capex spending defined as: purchase of fixed assets + payment for addition of exploration and evaluation assets + payment for
intangible assets
5
  Operational EBITDA – taxes – change in net working capital – capital expenditure.




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                                      Operating Segment

                                  Revenue                           Profit for the period
 ($ thousand)         1H24         1H23       % Change        1H24        1H23        % Change
 Coal mining          606,447      462,515          31%       255,608     165,432           55%
 Metal Processing           -            -             -       (3,420)       1,378        -348%
 Other services         1,556        2,051         -24%        (4,361)     (2,767)          58%
 Elimination            (965)        (960)           0%              -           -             -
 ADMR Consol          607,038      463,606          31%       247,827     164,043           51%




     FINANCIAL PERFORMANCE ANALYSIS FOR THE FIRST SIX MONTHS OF 2024
Revenue, Average Selling Price and Production
ADMR’s revenue in 1H24 increased 31% to $607.0 million on the back of a 43% increase in sales
volume to 2.59 Mt, balanced by an 8% decline in ASP. We continue to develop the market for our
high-quality metallurgical coal product, and it has garnered interest from customers in many
countries including Indonesia, Japan, and China. ADMR’s production volume in 1H24 increased
17% to 2.98 Mt and overburden removal increased 37% to 10.36 Mbcm, which led to a strip ratio
of 3.48x for 1H24.
Cost of Revenue
Cost of revenue in 1H24 increased 32% to $277.1 million mainly driven by higher production and
sales volume. Royalties to the Government declined 9% to $74.1 million due to the lower price,
while mining cost increased 24% to $86.5 million, coal processing cost increased 30% to $12.9
million, and freight and handling cost increased 24% to $64.2 million. Fuel cost increased 18% on
the back of higher volume, while coal cash cost per tonne in 1H24 declined by 14%.
Operating Expenses
1H24 operating expenses decreased by 43% to $20.6 million as we did not set aside an allowance
for government charges in 1H24 given our sales allocation to the domestic market. Employee
costs increased 19% to $5.3 million as our workforce grew to support expansion.
Operational EBITDA and Core Earnings
In 1H24, we generated operational EBITDA of $329.5 million, 40% increase from 1H23.
Operational EBITDA margin for the period remained solid at 54.3%. Core earnings in 1H24
increased by 50% to $252.5 million. The 43% increase in sales volume supported a stronger
revenue and profitability generation and more than offset the decline in ASP.
Total Assets
Total assets increased 20% to $1.61 billion at the end of 1H24, comprising $598.8 million in
current assets and $1.01 billion in non-current assets. Cash balance at the end of 1H24 decreased
12% to $399.2 million. Cash accounted for 25% of total assets.


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 Fixed Assets
 Fixed assets as at the end of 1H24 were $663.4 million, 45% increase from the year ago period
 driven by investments in aluminium smelter at KAI and infrastructure projects at PT Maruwai
 Coal (MC). Fixed assets accounted for 41% of total assets.
 Mining Properties
 Mining properties as at the end of 1H24 declined by 6% year-on-year to $168.0 million in-line
 with production.


Total Liabilities
 At the end of 1H24, total liabilities declined by 44% to $325.2 million. Current liabilities declined
 7% to $189.4 million as the 51% increase in trade payables to $55.0 million was balanced by
 the 26% decrease in accrued expenses to $88.2 million.
 Non-current liabilities declined by 64% to $135.8 million at the end of 1H24 as the balance of
 loans from shareholders declined by 98% to $5.2 million, as we continued to pay down that loan,
 and repaid a total of $316.9 million.


Equity
At the end of 1H24, our equity level increased by 69% to $1.3 billion on the back of a 91% increase
in retained earnings to $1.1 billion driven by higher profitability.


Cash Flows from Operating Activities
In 1H24 our cash flows from operating activities increased by 151% to $288.7 million mainly driven
by higher receipts from customers in line with the higher sales volume. The higher volume also
drove the 56% increase in payment to suppliers to $245.2 million.
Cash Flows from Investing Activities
We recorded net cash flows used in investing activities of $156.0 million in 1H24, as purchases
of fixed assets increased 232% to $140.9 million in 1H24 related to infrastructure projects at MC
and aluminum smelter construction at KAI.
 Capital Expenditure and Free Cash Flow
 We spent $143.0 million in capital expenditure in 1H24 mainly related to our infrastructure
 projects at MC and construction of our aluminium smelter under KAI. KAI accounted for $111
 million of this figure. Free cash flow in 1H24 increased 84% to $223.6 million as operational
 EBITDA increased.
 Upon completion, the infrastructure upgrade projects will support our medium-term volume
 target of 6 Mtpa. The second barge-loading conveyor will increase loading capacity and improve

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  our capability to meet delivery commitments. These improvements will position us well to meet
  the anticipated growth in our metallurgical coal product.


Cash Flows from Financing Activities
Net cash flow used in financing activities in 1H24 increased by 152% to $317.1 million, as we
made loans repayment in the period of $316.9 million.


                                                            ###
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
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

Danuta Komar | Danuta.Komar@adaro.com

Media

Febriati Nadira | Febriati.Nadira@adaro.com




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