Bayan Resources (BYAN) Targets Coal Production of 57 Million Tons This Year

CORPORATE ACTION – JAKARTA. PT Bayan Resources Tbk (BYAN) projects that this year's coal production volume will increase. In the company's guide quoted on Tuesday (23/1), BYAN targets a total coal production in 2024 in the range of 55 million tons to 57 million tons.

For comparison, BYAN's production last year was at 48 million tons. This means, BYAN's coal production is estimated to increase by 18.75% from last year. The increase in BYAN's production is mainly due to the continuation of the expansion of the North Pakar site.

In detail, the majority of BYAN's production this year will still be contributed by the Tabang site, (including from the North Pakar site), reaching 49 million tons to 51 million tons. Then, production from Wahana Baratama Mining is estimated in the range of 2 million tons to 2.1 million tons.

Production from Teguh Sinarabadi / Firman Ketaun Perkasa is projected at 1.8 million tons to 2 million tons. Then, production from the Perkasa Inakakerta site is 1 million tons to 1.1 million tons. Lastly, production from Gunungbayan Pratamacoal - Block II is estimated at 600,000 tons to 800,000 tons.

The average cash cost is estimated to be in the range of US$ 40 to US$ 43 per ton. This figure is slightly higher than in 2023, which was US$ 39 per ton.

The increase in average cash cost is mainly due to the increase in overburden (OB) removal costs due to a higher stripping ratio, increased overhaul distance, and higher fuel prices.

BYAN's coal sales volume this year is expected to increase between 15% to 20%, in the range of 55 million tons to 57 million tons. For comparison, last year BYAN sold 47 million tons of coal, up 17.5% from sales in 2022 which was 40 million tons.

The estimated average selling price (ASP) of coal this year is estimated to be in the range of US$ 60 to US$ 65 per ton, down from last year's ASP estimate of US$ 76 per ton.

BYAN management estimates the average reference coal price (Newcastle) this year at US$ 110 per ton with the average ICI4 price becoming US$ 58 per ton in 2024.