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PT ADARO MINERALS INDONESIA TBK 1Q24 EARNINGS NEWS
RELEASE
Jakarta, April 30, 2024 – PT Adaro Minerals Indonesia Tbk (AMI, IDX: ADMR) today submitted
its consolidated financial statements for the three-month period ending March 31, 2024 to
OJK/IDX.
Mr. Christian Ariano Rachmat, President Director and Chief Executive Officer of PT Adaro
Minerals Indonesia Tbk said:
“Our achievement in 1Q24 provides a solid start for the year. Although selling prices began
to normalize towards the end of the quarter, we are pleased with the growing market
acceptance of our products, not only from seaborne customers but increasingly from
domestic buyers. Additionally, our investments in mining infrastructure to support
production growth are progressing as planned, as is our investment into aluminium
smelting.”
Highlights
• Production volume in 1Q24 reached 1.56 million tonnes (Mt) with sales reaching 1.05 Mt, a
27% and 24% increase from 1Q23, respectively.
• Overburden removal volume increased 62% to 5.34 million bank cubic meter (Mbcm), with
strip ratio reaching 3.43x compared to 2.70x in 1Q23.
• 1Q24 operational EBITDA of $156.07 million was 28% higher y-o-y on the back of higher sales
volume. Core earnings increased 36% to $118.13 million. Operational EBITDA and core
earnings exclude non-operational and non-recurring items, and reflect the performance of our
core business.
• Capital expenditure in the period reached $77.10 million as we advanced construction of PT
Kalimantan Aluminium Industry’s (KAI) aluminium smelter and continued to progress with
infrastructure projects at PT Maruwai Coal (MC).
• KAI focused on completion of soil improvement, piling works, and foundation works in its
aluminium smelter area. It has completed the heavy cargo berthing and the first phase of
dredging in jetty area. Moreover, KAI has also completed the earthwork in the dormitory area.
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Financial Performance
(US$ thousand, except otherwise stated) 1Q24 1Q23 % Change
Revenue 274,536 238,249 15%
Cost of revenue (117,474) (103,606) 13%
Gross profit 157,062 134,643 17%
Operating income 146,500 114,154 28%
Core earnings1 118,125 87,105 36%
Operational EBITDA2 156,068 121,533 28%
Total assets 1,782,351 1,343,984 33%
Total liabilities 629,530 664,322 -5%
Total equity 1,152,821 679,662 70%
Interest bearing debt 400,586 436,884 -8%
Cash 620,308 468,691 32%
Net debt (cash)3 (219,722) (31,807) 591%
Capital expenditure4 77,098 21,578 257%
Free cash flow5 108,496 (1,549) -7,104%
Basic earnings per share (EPS) in US$ 0.0028 0.0021 33%
Financial Ratios
1Q24 1Q23 Change
Gross profit margin (%) 57.2% 56.5% 1%
Operating margin (%) 53.4% 47.9% 5%
Operational EBITDA margin (%) 56.8% 51.0% 6%
Net debt (cash) to equity (x) (0.19) (0.05) 281%
Net debt (cash) to last 12 months operational EBITDA (x) (0.36) (0.06) 459%
Cash from operations to capex (x) 1.81 0.36 410%
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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) 1Q24 1Q23 % Change 1Q24 1Q23 % Change
Coal mining 274,202 237,678 15% 120,455 84,424 43%
Other services 814 1,051 -23% (1,024) 613 -267%
Metal processing - - - (3,793) - 100%
Elimination (481) (481) 0% - (1) -
AMI Consol 274,536 238,249 15% 115,637 85,036 36%
FINANCIAL PERFORMANCE ANALYSIS FOR THE THREE-MONTH PERIOD ENDING
MARCH 31, 2024 (1Q24)
Revenue, Average Selling Price and Production
Revenue in 1Q24 increased 15% to $274.54 million driven by a 24% increase in sales volume,
which balanced a 7% decline in ASP over 1Q23. AMI’s high-quality metallurgical coal product
was sold to a diversified mix of customers in Japan, Indonesia, South Korea, China, and India.
Production volume in 1Q24 increased 27% to 1.56 Mt, and overburden removal volume increased
62% to 5.34 Mbcm, resulting in a strip ratio of 3.43x for 1Q24.
Cost of Revenue
Cost of revenue in 1Q24 increased 13% to $117.47 million mainly due to higher overburden
removal and production volumes. Royalties to the Government declined 14% to $40.98 million
due to the lower price. Mining costs increased 44% to $45.65 million, coal processing costs
increased 40% to $6.4 million, while freight and handling costs increased 35% to $29.53 million.
Fuel consumption volume in 1Q24 increased 47% on the back of increased activities, while fuel
cost per litre was lower by 12% y-o-y. Coal cash cost per tonne in 1Q24 decreased by 20% as
our operations scale up and volume increases.
Operating Expenses
Operating expenses in 1Q24 declined by 48% to $11.28 million as we did not set aside an
allowance for government charges in 1Q24 given our sales allocation to the domestic market.
Employee costs increased 24% to $3.72 million as the company’s workforce grew to support
expansion.
Operational EBITDA and Core Earnings
Operational EBITDA in 1Q24 increased 28% to $156 million, and operational EBITDA margin for
the period was 57%. Core earnings in 1Q24 increased 36% to $118.13 million. Higher sales
volume in the period supported revenue generation, while we recorded significantly lower
operational expenses.
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Total Assets
Total assets increased 33% to $1,782 million at the end of 1Q24, consisting of $892.41 million in
current assets and $889.95 million in non-current assets. Cash balance at the end of 1Q24
increased 32% to $620.31 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 1Q24 increased by 44% to $611.03 million mainly due to
investments in KAI’s aluminium smelter and infrastructure projects at MC. Fixed assets
accounted for 34% of total assets.
Mining Properties
Mining properties at the end of 1Q24 declined by 6% year-on-year to $170.87 million in-line with
production.
Total Liabilities
At the end of 1Q24, total liabilities declined by 5% to $629.53 million. Current liabilities increased
4% to $201.30 million driven by higher trade payables. Non-current liabilities declined by 9% to
$428.23 million at the end of 1Q24 as loans from shareholders declined by 32% to $296.88 million,
having repaid a total of $20 million in the period. Bank loans, net of loan financing costs, at the
end of 1Q24 were $98.47 million as we began to draw down loan for KAI.
Equity
At the end of 1Q24, equity increased 70% to $1,153 million driven by the increase in retained
earnings which increased to $969.94 million driven by higher profit.
Cash Flows from Operating Activities
In 1Q24 our cash flows from operating activities increased significantly to $139.72 million from
$7.67 million in 1Q23 mainly driven by higher receipts from customers in-line with higher revenue.
Cash Flows from Investing Activities
We recorded net cash flows used in investing activities of $77.10 million in 1Q24, driven by a
significant increase in purchases of fixed assets to $76.17 million in 1Q24 related to MC’s
infrastructure projects and KAI’s aluminium smelter construction.
Capital Expenditure and Free Cash Flow
Capital expenditure in 1Q24 was $77.10 million, 257% higher than in 1Q23, and free cash flow
in 1Q24 significantly increased to $108.50 million. Capital expenditure was mainly spent for the
construction of the aluminium smelter under KAI and MC’s infrastructure projects. KAI alone
accounted for $57 million of this figure. Upon completion, the infrastructure upgrade projects
will support our medium-term volume target and will enable us to reliably deliver our volume
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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 1Q24 increased 15% to $29.58 million, mainly due
to the repayment of shareholders’ loan of $20 million.
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PT ADARO MINERALS INDONESIA TBK (IDX: ADMR) 1Q24 ACTIVITIES
REPORT
Operational Highlights
• Production volume in 1Q24 reached 1.56 million tonnes (Mt) with sales reaching 1.05 Mt, a
27% and 24% increase from 1Q23, respectively.
• Overburden removal volume increased 62% to 5.34 million bank cubic meter (Mbcm), with a
strip ratio of 3.43x compared to 2.70x in 1Q23 as we restarted the operation at PT Lahai Coal
(LC) and expanded the operational areas at PT Maruwai Coal’s (MC) Lampunut mine.
• Our ongoing investments in facilities and infrastructure to support higher volume continue to
progress. We have started the construction of our second barge-loading conveyor project,
fuel storage tank, and Lampunut Waterfront Camp in 1Q24.
• In 1Q24, PT Kalimantan Aluminium Industry (KAI) continued to advance the construction of
the aluminium smelter. KAI has worked on the completion of soil improvement, piling works,
and foundation works in the smelter area.
OPERATIONAL PERFORMANCE
PT MARUWAI COAL (MC) AND PT LAHAI COAL (LC)
• Metallurgical coal production volume in 1Q24 reached 1.56 million tonnes (Mt), a 27%
increase over 1Q23, with sales reaching 1.05 Mt, 24% higher than in 1Q23. Overburden
removal volume in 1Q24 reached 5.34 Mbcm, 62% higher y-o-y, leading to a strip ratio of
3.43x in 1Q24, 27% higher than in 1Q23.
1Q24 vs.
Units 1Q24 4Q23 1Q24 vs. 4Q23 1Q23
1Q23
Overburden Removal Mbcm 5.34 4.89 9% 3.30 62%
Maruwai Mbcm 4.27 3.02 42% 3.30 30%
Lahai Mbcm 1.07 1.87 -43% - -
Production Volume Mt 1.56 1.13 38% 1.22 27%
Maruwai Mt 1.45 0.93 56% 1.22 18%
Lahai Mt 0.11 0.20 -45% - -
Sales Volume Mt 1.05 1.45 -28% 0.85 24%
Maruwai Mt 0.96 1.25 -23% 0.85 13%
Lahai Mt 0.09 0.20 -55% - -
• Japan remained as our largest sales destination and accounted for 35% of sales in the
quarter. Sales volume to the domestic market increased along with the growth in domestic
demand on the back of increasing coke plants’ capacity. Indonesia accounted for 33% of
sales in 1Q24. The chart below shows our sales destination in 1Q24.
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India
3%
China
12%
Japan
35%
South Korea
18%
Indonesia
33%
• To support our higher volume target, we are working on several facility and infrastructure
projects, such as upgrading the hauling road, building a second barge-loading conveyor
(BLC), adding a fuel storage tank, and building a new camp for employees. The first stage
of the hauling road upgrade covers 39 km in length, and the second BLC has a planned
capacity up to 3,000 tph. We continue to make good progress in all our infrastructure
projects.
PT KALIMANTAN ALUMINIUM INDUSTRY (KAI)
• As part of the Adaro Group's commitment to support the green economy and pursue
sustainable growth, AMI, through KAI, is developing downstream minerals processing.
Following the completion of land clearing activities in 4Q23, KAI is now focused on the
main construction activities of its aluminium smelter and has begun working on the soil
improvement, piling works and foundation works in the smelter area.
• In 1Q24, earthwork in the dormitory area was completed, as well as the heavy cargo
berthing and the first phase dredging in the jetty area.
HEALTH, SAFETY, AND ENVIRONMENT (HSE)
MC and LC recorded strong safety performance in 1Q24 with no lost time injuries (LTI), hence
the lost time injuries frequency rate (LTIFR) and severity rate (SR) for 1Q24 were zero. Total man-
hours worked for MC and LC in the period were 3,963,203. This achievement reflects the hard
work and commitment of all our people, and we will do our best to continue to maintain a safe
working environment. Meanwhile, in 1Q24 KAI experienced one LTI, resulting in LTIFR of 0.18
and severity rate of 3.21. Total man-hours worked at KAI in 1Q24 were 5,607,620.
We continue our efforts to strengthen our safety performance through the implementation of the
Adaro Group’s Adaro Zero Accident Mindset (AZAM) to enhance the safety culture among our
employees and contractors. Our health and safety programs focus on the implementation of the
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HSES Minimum Requirements, which include compliance with regulations and standards.
Moreover, we also implement controls for high-risk activities during the construction phase.
CORPORATE EVENTS AND AWARDS
In 1Q24, PT Adaro Minerals Indonesia Tbk received the following awards:
• Director and Corporate Secretary of PT Adaro Minerals Indonesia Tbk, Heri Gunawan,
received the Best Corporate Secretary award from The Energy and Mining Editor Society.
The award recognizes the important roles of company’s leaders in advancing the energy
and mineral resources sector in Indonesia, in their respective professional capacity.
• PT Adaro Minerals Indonesia Tbk was awarded the Gold award in the Best Community
Progamme category at The 16TH Annual Global CSR & ESG Summit and Awards 2024,
organized by The Pinnacle Group International.
###
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
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
p.1 ×2
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PT Lahai Coal
p.6 ×2
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PT Maruwai Coal’s
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