PT BUMA International Group Tbk posted improved performance for the first quarter ending March 31, 2026 (1Q26), reflecting the continuation of its recovery from operational challenges experienced in 1Q25.According to BUMA International Group Director Iwan Fuad Salim, the performance was supported by structural improvements in productivity, unit costs, and operational discipline.“1Q26 shows that the recovery we built throughout 2025 continued during a quarter that is seasonally challenging,” he said in a statement in Jakarta on Sunday.He added that operational improvements in 1Q26 continued the positive trend established throughout 2025. In Indonesia operations, non-productive hours fell by 14% due to improvements in handling slippery conditions caused by rainfall, as well as constraints in disposal areas, haul roads, and geological conditions.Bank cubic meter (BCM) productivity per hour increased by 1% year-on-year (YoY), in line with a 1% YoY reduction in cycle time, supported by improved haul road conditions and reduced queuing times.Unit costs per BCM declined by 1% YoY, reflecting maintained cost discipline. Labor costs per BCM fell by 4% YoY, supported by continued shift discipline and more efficient operator allocation, with the operator-to-equipment ratio declining by 3% YoY.Fuel costs per BCM increased by 3% YoY, entirely driven by higher fuel prices, while consumption per BCM remained stable, reflecting consistent fleet efficiency.Repair and maintenance costs per BCM rose by 13% YoY due to planned accelerated maintenance activities aimed at maximizing equipment readiness ahead of drier operational periods in the second and third quarters.Looking beyond the first quarter, Iwan said operational recovery continued into April and was reflected in higher volumes, supported by stronger execution and improving weather conditions.Combined monthly overburden removal volumes in Indonesia and Australia increased from 26.4 million bank cubic meters (MBCM) in February to 30.4 MBCM in March and 34.3 MBCM in April.Meanwhile, coal production reached 5.9 million tons (MT) in April, approximately 16% and 22% above the average monthly production levels recorded in 1Q26.Overall overburden removal volume declined by 12% YoY to 89 million bank cubic meters (MBCM), while coal production fell by 20% YoY to 15 million tons (MT).The decline in volumes mainly reflected the expiration of contracts at the Binungan site in Indonesia and the Burton site in Australia, as well as the ramp-down of two Indonesian sites in 2025. Sites operating normally remained stable.Revenue was recorded at USD 318 million, down 10% YoY, in line with a smaller active portfolio.The Average Selling Price (ASP) of the mining contractor business increased by 3% YoY, supported by a higher proportion of rise-and-fall contracts and tiered tariff increases linked to coal prices.EBITDA rose 98% YoY to USD 28 million from USD 14 million in 1Q25, with EBITDA margin improving to 11% from 5% in 1Q25.Meanwhile, the company recorded a net loss of USD 24 million, compared to a net loss of USD 70 million in 1Q25.The 66% YoY improvement reflected EBITDA recovery as well as three supporting non-operational factors: a USD 12 million gain from the ongoing optimization of the ACG portfolio through land asset sales, a USD 12 million reduction in investment losses from 29Metals, and the absence of a USD 4 million receivables provision in Australia that had been recorded in 1Q25.Capital expenditure was recorded at USD 20 million, allocated to maintaining fleet reliability and operational sustainability.Free cash flow turned positive at USD 2 million, compared to negative USD 19 million in 1Q25.
Source https://djakarta-miningclub.com