KONTAN.CO.ID – JAKARTA. Shares of PT Bumi Resources Tbk (EARTH) already touched the price of Rp 71 per share at the close of trading on Friday (27/11) after being asleep for a long time, it became a gocap stock.
The increase in BUMI’s share price occurred since Monday (23/11) which closed at the level of Rp 53, then three days after that it touched the level of Rp 57, Rp 72 and Rp 76 respectively. However on Friday (27/11) BUMI weakened 6, 58% to the level of IDR 71.
Meanwhile, since the beginning of the year, BUMI’s highest level was at Rp. 80 which was recorded on last Friday.
Main Services Analyst at Capital Sekuritas Chris Apriliony explained that the increase in BUMI’s share price was driven by sentiment on rising coal prices. On Wednesday (25/11) the price of ICE Newscastle coal for delivery in January 2021 touched US $ 69.6 per ton, which is the highest level this year. Then it touched US $ 70 per ton at the close of trading Thursday (26/11).
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As long as coal prices are in a strong trend, BUMI’s shares are also predicted to continue to strengthen. “In the short term, as long as coal is still increasing, BUMI will not return to the gocap level, but if coal goes down, it could,” said Chris, Friday (27/11).
Director and Corporate Secretary Dileep Srivasta in early November 2020 explained that until September 2020 BUMI experienced a current loss attributable to the parent entity, aka a net loss of US $ 137.3 million due to the realization of a decreased coal price, decreased sales volume and loan payments .
The realization of coal prices was recorded to have decreased by 14% triggered by negative global economic conditions and market conditions, which impacted the demand for coal in BUMI’s main market. Meanwhile, sales volume from the beginning of the year to September 2020 decreased by 5% compared to the same period last year due to correcting demand for coal from China and India.
While loan repayments are made in the amount of US $ 331.6 million in cash consisting of Tranche A principal of US $ 195.8 million and interest of US $ 135.8 million, until October 2020. Where in October 2020 the EARTH pays US $ 195.8 million. 3.8 million.
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BUMI’s closing inventory was recorded at 3.3 mt at the end of September 2020, while in the same period last year it was recorded at 5.2 mt. Dileep said this reflects the efficiency of working capital.
Although market conditions have not yet recovered, BUMI is optimistic that it can maintain and improve operational performance in the medium term. In addition, optimism also arises from the existence of an omnibus law that allows incentives for downstream projects such as coal gasification, and BUMI has become the appointed coal supplier for the nearest methanol project starting in 2023.
BUMI has guidelines that in 2020 production is 85 mt- 89 mt, with a price range of US $ 46 per ton to US $ 49 per ton. The load is in the range of US $ 32 per ton to US $ 34 per ton.
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