Bumi's losses narrow

Mining group Bumi has reported a 25 per cent fall in pre-tax losses and a 57 per cent fall in basic losses per share (release).

Pre-tax losses fell to $85m from $113m in the same period the year before. Basic losses per share fell to 31 cents from 72 cents.

Production rose by 19 per cent to 11.5mt for the period, and the company said it was on track for full-year production of 23mt.

Commenting, chief executive Nick von Schirnding said:

There have been two areas of focus at PT Berau [coal miner that Bumi owns 85 per cent of] in the first half of 2013. One has been a major effort to address governance and financial control issues identified earlier this year.

We carried out an extensive review of the financial position of Berau which has resulted in increased alignment with Bumi plc policies and procedures and the enhancement of our financial systems and controls. This process is ongoing and further improvements will be made during the year.

The second is the development of a revised mine plan in conjunction with an asset optimisation exercise to profitably increase coal production, improve efficiencies and reduce costs.

This, together with the appointment of a new Chief Financial Officer and Chief Mining Officer, will further help us achieve our goals.

Good progress continues to be made on the transaction to separate from the Bakrie Group and Bumi Resources. The circular to shareholders is at an advanced stage and the Company expects it will be sent to shareholders in September 2013.