PT SMR Utama (SMRU), mining contractor and mid-size coal miner, said it has set a target to produce 3.5 MnT of coal in CY19, a tad higher than 2.9 MnT of coal it produced in CY18, Kontan newspaper reported citing Ricky Kosasi, finance director of the company.
The company also aims to lift 38 million bcm of overburden removal this year, more than 33 million bcm recorded in 2018.
Kosasih said the company would face problem this year after coal prices had fallen drastically over the past few months. As a result, it would focus on its efforts this year to improve operations.
The company would also seek new contract of mining services to other coal miners including PT Berau Coal and PT Gunung Bara Utama.
The company has set aside USD 21 Million as capital expenditure for CY19. Last year, it had allocated 300 Billion Indonesian Rupiah in capital expenditure to fund various business projects, but had spent 202 Billion Rupiah in capex for the entire of CY2018, the paper reported.
The company, which has yet to announce its financial results, predicted its revenue to reach 850 Billion Rupiah in CY 2018. Kosasih declined to disclose its net profit target for last year.
The company posted a net loss of 72.40 Billion Indonesian Rupiah in the first nine months of 2018, widening from just 4.40 Billion Rupiah in the same period a year earlier, according to a statement of the company.
The company attributed the widening net loss last year due to various reasons including gain in cost of revenue and an increase in foreign exchange loss.
SMR Utama is engaged in coal mining business through its main unit PT Ricobana Abadi.
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