Bayan Resources, Coal Company Owned By Conglomerate Low Tuck Kwong Budgets IDR 3.5 Trillion For Capital Expenditure, Targets To Raise IDR 48 Trillion In Revenue

JAKARTA - The coal company owned by conglomerate Dato' Low Tuck Kwong, PT Bayan Resources Tbk (BYAN) has budgeted a capital expenditure of around 220 million-250 million US dollars, or around IDR 3.5 trillion this year.

In the company's guidance report, quoted on Thursday, April 21, BYAN's capital expenditure (capex) increased from last year's 190 million US dollars. The use of this year's capital expenditure, 78 percent is allocated for construction and infrastructure development.

Furthermore, 21 percent was channeled to the purchase of equipment and machinery. The remaining 1 percent is for other business supporters.

Meanwhile, a number of projects currently being carried out by BYAN include the construction of the 101-kilometer Coal Haul Road to Mahakam which costs around USD 121.9 million. Then, approximately USD 45.8 million of the capex budget will be used for other major projects including expansion of the BCT stockpile and new conveyors.

As for this year's production, Bayan Resources has not changed much from last year's target. The company targets production in 2022 of 37-39 million tons, which is almost the same as last year's target of 38 million tons.

In addition, BYAN estimates that it will earn between USD 3.2 billion-3.4 billion or around IDR 48 trillion in 2022. This takes into account the average selling price (ASP) in the range of USD 85-90 per metric ton (MT) and at an average price on the Newcastle market of around USD 220 per tonne.

Cash costs are expected to be in the range of 33-36 US dollars per tonne, so this year's Ebitda is expected to reach between 2 billion-2.1 billion US dollars.