Cokal (CKA) Q1 2025 TU earnings summary

Executive summary

• Entered binding agreements with PT Petrosea TBK for contractor management and PT Cipta Bersama Indonesia for underground mining at BBM, targeting PCI coal within 18 months at no upfront cost to Cokal.

• Focused on ramping up BBM production, enhancing haulage and transport infrastructure, and stockpiling coal due to low market prices and river constraints.

• BBM ended the quarter with 43,615 tonnes of mined coal stockpiled, with sales resuming as prices recover.

Financial highlights

• Ended the quarter with US$26k in cash and undrawn facilities of US$1.55 million.

• Received US$1.45 million upfront from PT Mareta Persada (Petrindo Group) and US$1.56 million in October as infrastructure and operating cost contributions.

• Net cash used in operating activities was US$1.25 million; investing activities used US$739k; financing activities provided US$1.51 million.

• Estimated quarters of funding available is 0.9, but additional revenue expected from resumed coal sales and recent prepayments.

Outlook and guidance

• Anticipates improved coal market conditions in Q4, with ongoing negotiations for November and December deliveries.

• Expects stable production and revenue generation from saleable coal stockpiles and new sales agreements.

• Underground mining at BBM Pit 1 to commence, with feasibility and infrastructure development underway.