PT Bayan Resources Tbk (BYAN) continues to spur coal production. Director of BYAN, Russell John Neil revealed, BYAN launched coal production above 45 million tons in 2023.

What is the exact amount? Russel has not been able to specify exactly what the coal production figures are planned by BYAN.

"We are still finalizing our budget, so the final figures have not yet come out," he said in a public expose event, Monday (5/12).

As a comparison, BYAN launched a coal production plan and sales volume of 37 million - 39 million tons of coal respectively throughout 2022.

With this production plan, BYAN is aiming for revenue of US$ 3.2 billion - US$ 3.4 billion assuming an average selling price (ASP) of US$ 85 per ton - US$ 90 per ton.

BYAN Director Jenny Quantero said BYAN is awaiting approval from the Ministry of Energy and Mineral Resources (ESDM) for the company's Work Plan and Budget (RKAB).

"We have submitted the RKAB, but it is still in the approval stage of the Ministry of Energy and Mineral Resources," said Jenny.

In accordance with the ongoing finalization, BYAN's management has not opened up about the projections or revenue and profit performance targets that BYAN is eyeing with its 2023 production plan. However, Jenny revealed that BYAN took a conservative assumption in forecasting coal price projections in 2023.

Therefore, he estimates that the company's coal ASP throughout 2023 will be lower than in 2022.

"Big coal price forecasters like McKinsey and others predict that coal prices will be lower in 2023," explained Neil.

Previously, BYAN's financial performance was boosted by the increase in coal prices in the first nine months of 2022.

Despite posting a decrease in sales volume from the original 29.3 million tons in January-September 2021 to 28 million tons in January-September 2022, BYAN's revenue and net profit performance rose in the first nine months of 2022.

The company's interim financial report shows that BYAN's revenue reached US$ 3.34 billion in January-September 2022 or soared 91.42% compared to January-September 2021 revenue of US$ 1.74 billion.

According to the rising revenue, profit for the current period attributable to owners of the parent entity aka BYAN's net profit skyrocketed 150.25% on an annual basis or year-on-year (yoy) from the original US$ 650.32 million in January-September 2021 to US$ 1.62 billion in January-September 2022.

Just so you know, ASP BYAN has indeed increased in the first nine months of 2022. It was noted that ASP BYAN rose from the original US$ 59.7 per MT in January-September 2021 to US$ 119.4 per MT in January-September 2022.

"This increase (performance increase in January-September 2022) is due to the increasing average selling price," said Jenny.

Image source: BYAN

Source: https://investasi.kontan.co.id/news/target-produksi-batubara-bayan-resources-byan-lebih-dari-45-juta-ton-di-2023