Bumi Minerals 1Q income squeezed by a half

JAKARTA: PT Bumi Resources Minerals Tbk (BRMS), Indonesia-based leading non-coal miner, booked almost a half lower net income to IDR138.53 billion in the first 3 months of this year.The lower net income was driven by declining gold and copper production
Wandrik Panca Adiguna
Wandrik Panca Adiguna - Bisnis.com 31 Mei 2011  |  01:16 WIB

JAKARTA: PT Bumi Resources Minerals Tbk (BRMS), Indonesia-based leading non-coal miner, booked almost a half lower net income to IDR138.53 billion in the first 3 months of this year.The lower net income was driven by declining gold and copper production of PT Newmont Nusa Tenggara to 40%, said Director Kenneth Farrell.Nevertheless, the financial performance of the subsidiary of Bakrie Group becoming a business machine for Bumi Minerals in Indonesia was reported to be positive because of higher sell price of copper and gold near to 25%.The declining production of Newmont is temporary as the development of 6th phase in Batu Hijau mining field on Newmont concession is delayed, while Bumi Mineral still reports IDR138 billion net income, he explained in an official statement, yesterday.Today, Newmont focuses on copper and gold production in 5th phase area having out of production period and releases a part of existing stock pile with lower grade.Meanwhile, the development of 6th phase is targeted to complete and its copper and gold production is expected to be higher in 2012 compared to the quite high production average in 2010.Then, excluding Newmont, the mining assets of Bumi Minerals havent still been operated yet.Debts burdenReportedly, the miners debt ratio against capital for the first quarter of this year climbed to 0.15 times, while the financial expenses and interest cost fell by 51% to IDR 100 billion.BRMS has paid off majority of loans in the recent months. It also books higher cash in bank and cash equivalent to IDR687 billion compared to that of in the same period of last year, he explained.In the meantime, the company is expected to pocket soon a leasehold permit for protected forest of Dairi Prima from Forestry Ministry, so it can explore 130,000 tons zinc a year and 60,000 tons iron ore a year.If the license is issued in June or July, so for the next 18-20 months, Dairi Prima can start to produce with an underground mine scheme, Investor Relations Herwin Hidayat said.In yesterdays trading, the BRMS-coded shares were closed down by 1.43% to IDR690 with share capitalization penetrating IDR17.64 trillion.PT Truba Alam Manunggal Engineering Tbk (TRUB), through PT Truba Jaya Engineering, won two construction projects of PT International Nickel Indonesia Tbk (INCO) with total investment by IDR90 billion.PT Truba Jaya Engineering is one of Truba Alams subsidiaries focusing on infrastructural project construction.Truba Alam has signed other construction contracts as electric furnace unit 2, rotary kiln unit 1, and unit 3 from Nickel International Tbk, stated in the official statement, yesterday.(t01/wiw)

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