Cokal (CKA) H2 2024 earnings summary

Executive summary

• Transitioned from coal explorer to producer, achieving first commercial coal sales from BBM mine and establishing logistics infrastructure for market delivery.

• Expanded production capacity at BBM with five mining fleets and new logistics partnerships, including a joint venture with PT Petrindo Jaya Kreasi.

• Advanced infrastructure with a fully automated jetty system at Batu Tuhup and acquired new trucks and barges to support coal transport.

• Initiated plans for production expansion, including underground mining and development of the adjacent TBAR project.

• Addressed coal quality concerns with plans for a coal wash plant by Q1 2025.

Financial highlights

• Revenue for FY2024 was US$3.7 million, up from US$16,373 in FY2023, reflecting the commencement of coal sales.

• Net loss after tax increased to US$9.83 million (FY2023: US$9.27 million), with loss per share at (0.91) cents.

• Net assets turned negative to US$(8.47) million as of 30 June 2024, compared to US$1.36 million in the prior year.

• Cash and cash equivalents at year-end were US$0.48 million, down from US$1.34 million.

• Operating cash outflow was US$0.96 million, a significant improvement from US$5.79 million outflow in FY2023.

Outlook and guidance

• BBM mine production ramp-up supported by new mining contractor partnerships and logistics upgrades.

• Underground mining at BBM Pit 1 to commence, targeting PCI coal production within 18 months at zero cost to Cokal.

• Coal wash plant expected to be operational by Q1 2025 to enhance product quality.

• TBAR exploration drilling to begin post-regulatory approval, with maiden JORC resource targeted for Q3 2025.

• Continued focus on expanding production and resource base in Central Kalimantan.