Temporary Decline in 1Q18 Production
ITMG posted the surge of 2.8% y-y into USD378 million in 1Q18 sales backed by the 1Q18 soring ASP of USD83.6/ton vs. the 1Q17 ASP of USD67.5/ton. We estimate that until the end–2018, ITMG is likely capable of maintaining ASP to top USD80/ton amid the currently high global coal prices.

Meanwhile, the sales volume slid by 18.5% y-y into 4.4 million tons. The decline in the 1Q18 sales volume was coupled with the decline in the production volume attributable to the less favorable weather. Most of coal companies experienced declining production volumes. We project that ITMG’s production volumes and sales are likely buoyant in the following quarters.

Enjoying Contribution by Business of Selling Fuel
The business of selling fuel deriving from the acquisition of PT Emas Gas posted higher contribution. In 1Q18, it contributed USD10.3 million to ITMG’s overall sales. We estimate that in ahead years, this business remains buoyant along with the high mining activities in Indonesia and the uptrend rally in global crude prices.


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