Battle mars Bumi results

A LONDON-listed coal miner embroiled in a stoush with one of its Indonesian investments has had its third quarter 2012 results marred by the battle.
Battle mars Bumi results Battle mars Bumi results Battle mars Bumi results Battle mars Bumi results Battle mars Bumi results

Courtesy of Bumi Plc.

Noel Dyson

Bumi PLC requested an audit of PT Bumi Resources – a company it has a 29.2% stake in – because of concerns over financial irregularities at the Indonesian operation.

As a result of the audit, Bumi PLC has not been able to include PT Bumi Resources’ figures in its filing.

Bumi PLC announced the independent investigation it commissioned into PT Bumi Resources was ongoing.

It could, however, report on the results from Berau Coal, a company it has an 85% stake in.

Berau reported it had mined 5.5 million tonnes of coal for the third quarter, up 4% on the same period last year.

The operations were impacted by a higher stripping ratio – 10.1 bank cubic metres per tonne – which added to costs.

However, it received lower prices for that coal – down 17% quarter on quarter to $US71.3 per tonne.

Indeed there was further decline of the price in the second half of the third quarter. The price for a tonne of sub-bituminous thermal coal fell below $70.

Berau is forecast to mine 21Mt for 2012.

Bumi PLC also said it was still mulling over a proposal by shareholder the Bakrie Group to cancel its indirect holding of roughly 23.8% in Bumi PLC in exchange for an equivalent value of PT Bumi Resources shares.

It would represent about 10.3% of the total outstanding share capital of PT Bumi Resources as held through Bumi PLC.

The Bakrie Group also has made a conditional proposal to buy back the remaining 18.9% shareholding in PT Bumi Resources and a further conditional proposal to make a cash offer within the next six months for Bumi PLC’s 85% stake in Berau.

The Bumi PLC board has appointed the Rothschild Group to evaluate each of those proposals on their merits.

During October, Bumi PLC founder and non-executive director Nathaniel Rothschild stepped down from the Bumi board.

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