+ Total volume exceeded FY18 production target. Full-year production from coal mining totalled 22.6mn tonnes, exceeding by 13% of FY18 target.
– Price correction protracted in 4Q18. HBA (Indonesia Coal Price Reference) grew mildly by 3.0% YoY to US$97.1/tonne in 4Q18 but fell by 7.1% QoQ. ICI 4 averaged at US$30.2/tonne (down 21.3% QoQ). Meanwhile, the spread between Newcastle Coal (NeWC) and ICI 4 widened during the period. Averagely, ICI 4 is trading at a 50% discount to NeWC, but the discount increased to 70% in 4Q18.
– Full-year cash cost jumped. In FY18, cash cost surged by 18.6% YoY to US$27.4/tonne. The increase in the strip ratio of BIB mine (FY18:4.8 vs FY17:4.2) accounted for US$1.5/tonne. The increase in cost was impacted by fuel price, the distance between mining field and overburden dumping site, coal hauling, road repair and maintenance, and port/jetty cost lifted the cost by another US$0.7/tonne, US$0.65/tonne, US$0.50/tonne, US$0.8/tonne and US$0.50/tonne respectively.