Jump in ASP: Sales Booster
Along with the revival of coal mining industry in Indonesia, ITMG marked a positive accomplishment in 3Q17. Its sales picked up 18.9% y-y from USD349 million in 3Q16 into USD415 million in 3Q17. This increment was underpinned by the leap of 48.7% y-y in average selling price (ASP). On the other flip side, the coal sales volume slid 20.0% y-y from 7.0 ton in 3Q16 into 5.6 million ton in 3Q17.
In China market, its sales volume experienced the most significant dive of 60.0% y-y from 2.0 million ton into 0.8 million ton. The annually downward sales also occurred in Japan and Indonesia markets. However, the sales to Thailand surged 80% y-y offsetting its total sales from the deeper dive.

Heightened Efficiency through Fuel Distributor Acquisition
In 3Q17, ITMG took over 75% shares of PT Gas Emas (PTGE), the fuel distributor. In coming years, PTGE will supply fuel for ITMG’s mining. This acquisition of fuel distribution reduces the fuel expense of which current portion is 21% from the total operational expense. We estimate that in years ahead ITMG will be capable of maintaining its gross margin in the highest position.


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