Nov 26, 2010

Borneo expects US$823 mio revenue

Indonesian coking coal producer PT Borneo Lumbung Energi & Metal Tbk is estimated to record US$823.45 million revenue by the end of 2011 as it could speed up higher production capacity to 5 million tons before end of 2011.
An executive familiar with the matter said assuming with June's average selling price (ASP) at US$191.5 per ton and average production capacity of 4.3 million tons in 2011.
"Referring to IPO prospectus, Borneo eyed 5 million tons by the end of 2011. But, with earlier equipments delivery, Borneo might speed up a higher production," the executive said.
Borneo paves to stages expansion. Firstly, it plans to jack up coal capacity to 3.6 million tons by end of 2010. Secondly, the company aims to enlarge capacity to 5 million tons by end of 2011.
"Borneo spent US$198 million to roll out infrastructure facilities and buy heavy equipments, mainly Komatsu and Liebherr."
Borneo Director Geroad Jusuf said the company is expected to increase production to 5 million ton earlier than the initial target.
"With production speed up, we could reach 4 million ton production capacity on average in 2011," he said.

Disclosure: No position at the stock mentioned above. 
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