May 31, 2011

Bumi Minerals 1Q net income squeezed

PT Bumi Resources Minerals Tbk (BRMS), Indonesia-based leading non-coal miner, booked almost a half lower net income to Rp138.53 billion in the first 3 months of this year.
The lower net income was driven by declining gold and copper production of PT Newmont Nusa Tenggara to 40%, said Director Kenneth Farrell.
“The declining production of Newmont is temporary as the development of 6th phase in Batu Hijau mining field on Newmont concession is delayed, while Bumi Mineral still reports Rp138 billion net income,” he explained in an official statement, yesterday.
Today, Newmont focuses on copper and gold production in 5th phase area having out of production period and releases a part of existing stock pile with lower grade.
Meanwhile, the development of 6th phase is targeted to complete and its copper and gold production is expected to be higher in 2012 compared to the quite high production average in 2010. Then, excluding Newmont, the mining assets of Bumi Minerals haven’t still been operated yet.

Disclosure: No position at the stock mentioned above.

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