KONTAN.CO.ID – JAKARTA. PT Golden Eagle Energy Tbk (SMMT) seeks to utilize the momentum of the upward trend in coal prices to boost the company’s performance in 2022.
President Director of Golden Eagle Energy, Roza Permana Putra said, this year SMMT aims for coal sales to grow 15%-20% compared to the previous year’s realization.
For information, in 2021, SMMT’s coal sales volume increased by 67% to 2.04 million tons. If referring to the aforementioned target, SMMT’s coal sales this year could reach a range of 2.34 million tons to 2.44 million tons.
“The increase in coal sales is expected to have an impact on our financial performance, both top line and bottom line,” Roza explained in an incidental public expose on Friday (8/4).
The target is believed to be achievable given that coal prices continue to surge in the global market. This is in line with global coal demand, which is predicted to grow 2% by 2022, with China and India still the largest consumers of the commodity.
In addition, the economic sanctions imposed on Russia have increased the demand for coal in the European region. SMMT also glanced at the opportunity to sell coal to meet energy needs in the Blue Continent.
In addition, domestic coal demand is still relatively high. This is evidenced by the projection of national coal production reaching 663 million tons in 2022. Meanwhile, coal consumption for Steam Power Plants (PLTU) is predicted at 115 million tons.
SMMT’s management is committed to meeting domestic coal demand or domestic market obligation (DMO). Last year, of the total 2.04 million tons of coal sold by SMMT, 72% of them were intended for the domestic market.
Roza added that SMMT has allocated capital expenditure (capex) funds of IDR 30 billion this year. However, he did not explain in detail the plan to use the funds.
Clearly, to maximize performance this year, SMMT focuses on improving the quality of logistics and mining road access to operational and financial efficiency. SMMT also maximizes coal sales at spot prices and long-term contracts that refer to the prevailing coal price index in order to get the best returns.
Furthermore, SMMT also does not rule out the possibility of looking for mining land acquisition opportunities in the future. Land quality and ease of licensing are some of the factors considered by SMMT.
“The opportunity is there, we are still trying to find assets that are not far from our current assets in Borneo and Sumatra,” Roza concluded.
For your information, SMMT has coal mines managed through its subsidiaries PT Triaryani in South Sumatra and PT Internasional Prima Coal in East Borneo. Each of these mines has a production capability of up to around 1 million tons per year.
In addition, SMMT also has a coal mining project in Tabalong, South Borneo which is still in the exploration stage.