Jun 28, 2010

Delta Dunia eyes 39.36 mio coal output

PT Delta Dunia Makmur Tbk (DOID), parent company of Indonesia's second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA), sets targets of coal production and overburden removal to increase by 10%-20% this year.
Delta Dunia management, in a roadshow presentation, said it aims to reach 36.08 million tons-39.36 million tons of coal production.
Overburden removal this year is estimated to reach 305.8 million bank cubic meter-333.60 million bcm.
Delta Dunia posted 32.8 million tons of coal production with overburden removal of 278 million bcm last year.
In 2008, Delta Dunia reached 36.4 million tons of coal production with overburden of 262 million bcm.
The company aims to spend US$150 million-US$180 million of capital expenditure for growth in heavy equipment this year. "Delta Dunia strives to maintain 40% EBITDA ratio on net revenue," the presentation said.
Delta Dunia also targets to sign one new major contract in the first half this year. But, it hasn't disclosed the contract.
In the presentation material, Delta Dunia explained about with holding tax regulation on US$ denominated bond issuance.
Prime Dig, a wholly owned subsidiary of BUMA, has US$315 million of bond issued on November 2 2009.
The regulation on tax has increased Prime Did's annual coupon from 10% to 20% or US$3.7 million.
"Our bond documentation includes a tax call provision which allows the bond to be called at par," the presentation said.
The source said Delta Dunia aims to refinance the bond using syndicated bank loans sought by Standard Chartered Bank and Sumitomo Mitsui Banking Corporation.

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