SINGAPORE (May 18): Phillip Securities expects strong production growth at Golden Energy and Resources to outpace increasing cash cost.
“We remains positive on FY18 performance in view of a healthy ASP and phenomenal growth of sales volume,” says analyst Chen Guangzhi, adding GEAR’s annual target of 20 million tonnes still intact part of which will be contributed by the PT Barasentosa Lestari (BSL) mine.
GEAR benefited from buoyant coal prices in 1Q18 where revenue from coal mining segment accounted for 86.9% of total revenue. The stellar growth was mainly attributable to production ramp-up which yielded 56.7% higher production volumes at 4.7 tonnes. ASP for coal also rose 15.9% to US$47.4 per tonne.