Cokal (CKA) Q4 2024 TU earnings summary

Executive summary

• BBM commenced coal deliveries to domestic and international markets, supported by a joint venture with PT Petrindo Jaya Kreasi for haul road and infrastructure upgrades.

• Ramp-up in BBM mine production with three additional mining fleets, increasing to five fleets by end of April.

• BBM obtained approval for explosive magazine warehouse construction and completed key infrastructure projects, including camp facilities and weigh bridge.

• Initial coal shipments delivered to Sumber Global Energy, PT Risun Wei San Indonesia, and PT Kinrui, with positive customer feedback and plans for a coal wash plant to improve product quality.

Financial highlights

• Receipts from customers totaled US$3.25 million for the quarter and US$6.43 million for the year to date.

• Net cash from operating activities was US$1.21 million for the quarter.

• Cash and cash equivalents at quarter end were US$482,000.

• US$1.53 million spent on exploration and development activities during the quarter.

Outlook and guidance

• BBM plans to ramp up saleable coal production to approximately 25,000 tonnes per month (300,000 tonnes per annum) with the expanded mining fleet.

• Negotiations underway to establish a coal wash plant by end of 2024 to upgrade coking coal quality to premium standard.

• Anticipates long-term domestic demand for BBM's coking coal, supported by contracts with major customers.