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Edited Transcript of BUMI.JK earnings conference call or presentation 2-Jun-20 9:00am GMT

Q1 2020 Bumi Resources Tbk PT Earnings Call

Jakarta Jun 5, 2020 (Thomson StreetEvents) -- Edited Transcript of Bumi Resources Tbk PT earnings conference call or presentation Tuesday, June 2, 2020 at 9:00:00am GMT

TEXT version of Transcript

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Corporate Participants

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* Andrew Christopher Beckham

PT Bumi Resources Tbk - CFO & Director

* Dileep Srivastava

PT Bumi Resources Tbk - Corporate Secretary & Independent Director

* Soo Chong Lim

JP Morgan Chase & Co, Research Division - Analyst

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Conference Call Participants

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* Oon Jin Chng

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Presentation

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Operator [1]

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Ladies and gentlemen, thank you for standing by. Welcome to the PT Bumi Resources Tbk First Quarter '20 Results Investor Update. (Operator Instructions)

I would now like to hand the conference over to your first speaker for today, Mr. Soo Chong. Please go ahead, sir.

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Soo Chong Lim, JP Morgan Chase & Co, Research Division - Analyst [2]

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Welcome, everyone, to the PT Bumi Resources Tbk Investor Update Call for First Quarter 2020. My name is Soo Chong Lim. I'm head of research for JPMorgan. Today, we have the pleasure to have Andrew Beckham, the CFO for Bumi; and also Dileep Srivastava, Director and Company Secretary for Business Resources, to give us an update on the company performance in the first quarter and probably give us some guidance of what they are expecting for the second quarter, especially in light of what's happening on the (inaudible) the COVID-19 and the (inaudible) to the demand side.

I think without further ado, I will hand over to Andrew. Just before that, also to highlight the company has set around the presentation, you should be either inbox. And also, you can actually find on the (inaudible) also. I think that could be good reference as we go through -- as Andrew goes through the presentation.

Without further delay, let me hand over to Andrew. Andrew?

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Andrew Christopher Beckham, PT Bumi Resources Tbk - CFO & Director [3]

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Thanks, Soo Chong. Welcome, everyone. As Soo Chong mentioned, I'll be going through the presentation pretty much slide by slide. Hopefully, you can see the numbers on there. Without further ado, I'll start and we'll start on Slide 3, on the quarter 1 update. Benchmark coal prices were reasonably okay in Q1. It started to fall in March. And although prices -- benchmark prices took a while to come down, settlements and contracts were already struggling in March as the impact of the virus hit the whole world. Current benchmark prices have slightly recovered from the lowest in April of probably $47, $49 in April and now back up to around $54, $55 a tonne on the benchmark. I think settlements and tenders are slightly below that still, but it's a good sign of where the current market is.

In Q2, we've been able to continue sales levels similar to Q1 as China has come in to really pick up some of the reduction in sales to India. And I think China's in because of its reluctance to take Australian coal at the moment.

With regards to CCoW, the status has been more positive. I think if we hadn't had the virus issue, I think you'll be seeing prices around the $70 mark, and we could be telling you about the contract work finally been or the actual license, the law being passed and we expect now a simple process to get to the actual extensions. Latest we've said Q3 to actually get the formal extensions, but we don't see any reason why they won't be given to us in now from the Department of Mines. And we've had no indication of any problems.

With regards to production quotas, we're still waiting on the approval for the KPC quota. Hopefully, that will come in this month. With Arutmin, it will be after we received the extension of the CCoW to IUPK, then it will become what you call then we will be allowed to apply for the rest of the quarter.

On Slide 4, this shows the coal price performance, but it's still trying to recover in the last month. Hopefully, the recovery continues, but I think it's quite sensitive to how fast the world gets back to normal from this COVID. And if it does get back to normal, does it continue or does -- will the virus cases increase again, and so we go on a lockdown again. Those unknown factors naturally will impact us quite severely.

Slide 5. Forward curves are still in contango and getting back to about $60 by the end of this year at the present. But I think, as I said, if we see positive signs from the economy, I think speculators and funds will come back in. And I think prices will recover quickly.

On Slide 6, our guidance. We -- naturally, we had to reduce that slightly because of the actual where we've seen Q2 been with Arutmin high-grade coal. What we've done with high-grade coal, we restricted it to contract tonnage in Q2, as prices were below the sort of cost. The costs are around $50, low $50s when you total cost of that coal. And so therefore, anything around that sort of marks your breakeven level. So we've kept hold back our sort of sales to -- and our production to contracted tonnage, which is for the year about 4 million tonnes. At the beginning, we expect to look at 6 -- 7 million to 8 million tonnes. If prices continue to rise as they are at the moment in June and Q3 looks positive, will be -- we'll bring production back on of the high grade. And that's -- it will increase the actual production of that.

And similarly, prices are also reduced due to the current market, and we'll review those constantly naturally. Costs are also down as oil prices are low. Naturally, the lows, I think Brent crude was down to about $20, $22 in April, but it's recovered to near $40 now. So if both oil and coal prices continue, we are happy. But costs won't come down as quick as we probably see prices more between that $33, $34 overall for Bumi.

On Slide 7 on the operational highlights, KPC has maintained itself at over 15 million tonnes per quarter, despite demand and supply or general demand factors. Arutmin production, although down on Q4, was up on Q1 and then that was due to the high-grade coal. There's still 1.5 million tonnes of high grade sold in Arutmin in Q1. Where you've seen a slight reduction is in the low-grade coal, the eco-coal because of PLN reduced demand, particularly in March and then coming into the second quarter. So it's in the low-grade coal actually fall down and the enterprises react to that.

Overall, prices were up on the same time last year, but we've led sales in Q4 to sort of the wet season and reduced demand, so that will affect our results.

Slide 8 is showing you the Q1 2020 overburden result of KPC and Arutmin. This is because both companies were producing higher-grade coal than in the same time last year.

Slide 9 gives you the stripping ratios were also up due to the wet weather and the high-grade coal mix, as we have mentioned.

On Slide 10, production cash cost was up -- was also up on Q1 2019 with its higher strip ratio and high-grade coal mix. And fuel prices slightly above the same time last year in Q1 2019. And as we said, prices have come down, though, on the realized prices. Even with a higher grade of coal mix, we've seen prices -- unfortunately, the coal quantities are not taking the same price as they were in Q1 2019.

Slide 11, PLN receivables for the first quarter remain pretty constant in terms of sales and demand but -- in March. But on April sales, we've seen reduced domestically because of the demand requirements. And at present, although demand is down, it's constant. It's slightly impressed in the moment. We hope with Indonesia's decision to come back to work this week on Thursday is the current plan, we should see some uptick taking actual productivity and the economy.

On Slide 12, the realized prices are down, as mentioned from 2019. And as you can see, the eco-coal prices or the low-grade coal prices reflected debt, reduced demand from PLN, so that we added about a $30.8 for eco-coal. That's continued into April and May. June is slightly recovering.

On Slide 13, production cash costs in line with 2019, but we expect them to fall in quarter 2 because of fuel prices, assuming coal sales are constant, in line with Q1. As long as we see that, then our cost per tonne will be able to -- will come down.

On Slide 14, as the movement (inaudible) you can see the overburden costs go up as the high-grade coal production continues and also because costs of Arutmin will be higher. Because we are now in the last 12 months of the CCoW, we're not in a position where we can move or defer costs in our accounting to different periods over the life of the pit or the mine. We are asking to expense all costs as and when we incur it. So although operationally, we're running on a 5-year mine plan with outlook, we're not looking at shutting down anything or doing anything like that. And we don't -- we have no indication of that. From an accounting point of view, we still have to record everything based on the fact that we are -- technically, the license finishes at the -- in the fourth -- beginning of fourth quarter. So bear in mind that from an operational result point of view, financial results point of view, it will be slightly depressed on Arutmin costs because of this -- because of charging everything to expense.

Slide 15. We face the fuel prices as I had mentioned earlier. We begin to fall in March, and it hit low in April.

Slide 16 to 19, it reflects our financial statements, which are published yesterday? On Friday, sorry, or late Friday. Any detailed questions on that, please feel free to call us or e-mail us if you want any more breakdown. We show the published financial statements as published and also consolidating both KPC and Arutmin to give you a bit true reflection on how performance has been over that period. As mentioned, costs at Arutmin will be slightly higher as we expense all the costs until we get to a license being extended to formally.

Slide 20, the (inaudible) to see the gross profit was down due to lower realized prices for a high-grade coal. So our costs are slightly higher, and our prices are lower. Operating margins were, therefore, cut to around 7% versus 13% for the same time last year.

On Slide 21, we show our equity has reduced because of the loss. And our EBITDA, as can be seen on Slide 22, has come down [proportionally] and on 100% basis. And the Q1 2019 dropped out of the calculation. So our EBITDA is slightly down on that.

Slide 23, cash. Cash at Bumi levels fell $12.2 million from $20.5 million in December. And that for breakdown, we have KPC cash held balance is $61.1 million as of March, and Arutmin's cash is $30.36 million. As you know, we don't -- we're not showing -- we're only showing the Bumi stand-alone here. So in total, the total cash review consolidated all 3 would be $103.66 million. That compares to December of $93 million -- $93 million, $94 million in December. If anyone needs those numbers, drop me a line, and I'll send you an e-mail. But they should be in the financial statements you can get. But please let me know if you don't -- you haven't got them.

Slide 24. We paid in April cash interest of 6.5%, plus a PIK of 1% to 7% on Tranche A, 7.5% on Tranche A in April. However, in July, we will only pay cash interest of 6.5% on Tranche A. So the reason is that the calmer sequence of payments means that you pay the 6.5% of interest -- of cash interest first, and then you added a $4.5 million has to be allocated to overhead before we are allowed to pay the PIK interest on Tranche A, the extra 1%. So we believe that the 6.5%, which is equivalent to about $6.5 million, is -- will be paid without any issues. We expect some money to be paid in for overhead, otherwise they won't get paid. But then we don't expect more than that total which would be $11 million coming up. So unless there's a significant change even if -- realistically, I don't think you can expect anything more for the July payment because even if prices increase now in June, we'll probably see the benefit in Q3. Naturally, we will update on Q3 position as a -- price as we see July and August and how -- whether coal prices continue to recover or there's any change to that.

As usual, I don't (inaudible) KPC and Arutmin in detail individual, as I mentioned, probably most of them. Again, if any questions, please feel free.

With that, Soo Chong, I'll hand it over back to you, yes?

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Soo Chong Lim, JP Morgan Chase & Co, Research Division - Analyst [4]

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Operator, maybe you want to say the announcement about the Q&A session. Go ahead.

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Questions and Answers

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Operator [1]

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(Operator Instructions) We have the first question from the line of [Diana] (inaudible) from IHS Markit.

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Unidentified Analyst, [2]

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Andrew and Dileep, I have a question with regard to Bumi's planned production for the entire year. I understand you have capacity to produce up to 90 million tonnes a year, and a lot of this is dependent on whether you get the extension -- license extension. So I mean, but assuming that you do, as you said earlier, you don't see any sort of challenges to your request, how much is Bumi planning to produce given the weakness of (inaudible) in the market amid this pandemic?

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Andrew Christopher Beckham, PT Bumi Resources Tbk - CFO & Director [3]

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Yes. As per Slide 6, of our guidance, we believe it's between 85 million and 90 million tonnes. We're pretty comfortable that KPC seems to be weathering the production sales pretty well. But of course, the Arutmin is very reliant on high-grade coal sales to their own high prices and the domestic money of (inaudible). So a slightly drop on that. But we're looking at about 85 million to 90 million tonnes.

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Soo Chong Lim, JP Morgan Chase & Co, Research Division - Analyst [4]

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So maybe no other question on the queue now. Maybe I'll just ask you. I mean just you described a bit on the demand from China and India. So what is the situation right now? Are we seeing really that -- just like (inaudible) mentioned that Australian export to China has been kind of dropped off or it's been stopped. What's your decision? Are you going to see this demand being delivered to Indonesia? And the help really (inaudible) for the last couple of weeks, are you seeing a greater recovery on the demand side from India? So there's another big market, right? So how about the other region, starting India, Philippine, Thailand or Malaysia, is there any demand pickup from those other countries? Are you still seeing very (inaudible) demand because of the COVID-19?

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Andrew Christopher Beckham, PT Bumi Resources Tbk - CFO & Director [5]

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Yes. With regard -- Australia, yes, I think the price will publicize what the China, Australia (inaudible) going on. What I can do -- we definitely are having a number of tenders from China, and we are tendering in and being awarded contract with China. India is typically around 1 million to 1.1 million tonnes of our sales every month. They've been a bit low in April, May, but I understand it's around 5 -- 1.5 million to 1.6 million tonnes is contracted in June. So as long as we see that pickup and at the moment we'll confirm we're seeing a slight recovery there. I think the monsoons in India will have an effect temporarily, with July, August affect it. And then we have to just see how the market and the economy for India recovers, naturally, as its own -- has a major problem with the COVID, so we'll see.

I haven't seen too much. Japan has been very good in taking what's planned. So we can't -- we're never complaining about that. And I haven't seen too much issues with Philippines. We don't supply much to Malaysia.

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Operator [6]

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We have a question on the telephone line, sir, if you would like to take the question.

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Andrew Christopher Beckham, PT Bumi Resources Tbk - CFO & Director [7]

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Please go ahead.

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Operator [8]

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We have a question from the line of [Vikash Agrawala] from Bank of America.

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Unidentified Analyst, [9]

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A couple of questions from my side. One is regarding your operations. Has there been any impact because of the social distancing or the government situation and any disruption on any of your sites? If you can share. That's the first question. And the second question is, you mentioned about the CCoW extension. Could you also share whatever you know in terms of what could be the key controls or key guidelines in terms of the royalty, the land acreage, which is part of the extension and the new IUPK?

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Andrew Christopher Beckham, PT Bumi Resources Tbk - CFO & Director [10]

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Yes. On the COVID, we had a few positive cases up in KPC at the beginning around the March, April time. Those, thankfully, have been under control. I think we had about a maximum of 6 positive tests. And we've managed to keep pretty much the whole mine shutdown in terms of no impact with Sangatta, which is the main town there, which had quite a few cases. So we haven't had really a major impact on our production levels. As you can see, we're staying around that 15 million tonnes a quarter cycle level.

Arutmin, similarly, it hasn't been too -- that hasn't been impacted too much in South Kalimantan. I don't think it's been as it badly as everywhere else. So we're pretty lucky in that respect.

With regards to the contract work IUPK, understanding and based on what I understand from the law is that it will remain the same area, subject to any negotiations with the Ministry of Mines and make the areas that we no longer need or can give fact because they've already been mined out, and they've been reclaimed. So there might be that sort of thing. But there won't be any areas that we still intend to have reserves on that we would give up. And that's not needed.

With regards to the actual taxes, the key ones are the royalty for the export and domestic royalty is 13.5%. For the new IUPK, I understand it's now 15% for royalty and 14.5% for domestic royalty. I also understand that the company's tax rate reduces from 45% to 25%. But now, previously, there was no profit sharing from the net income after tax. Now there's a 10% profit sharing. So those are your key taxes that I understand are the major changes. Hopefully, that's continued -- that will be the final -- in the extension that will be confirmed.

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Dileep Srivastava, PT Bumi Resources Tbk - Corporate Secretary & Independent Director [11]

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Regarding the area, the legislation, which we are formally waiting for, which has been approved, the legislation says that the old areas of the CCoW will be preserved. And the lease life will be in $2 of 10 years each. And there is an incentive for use of coal as feedstock for critical national priority industries, which could further extend the life of the lease of gas concession, which is (inaudible). We are waiting for the final signature and the (inaudible). Thereafter, the ministry can start moving on the formal process. And as Andy said, we hope we can see the end of it next quarter.

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Unidentified Analyst, [12]

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Got it. And just last thing is that next quarter, meaning third quarter and 1 month -- quarter ending September is when you are targeting to get everything done for the CCoW extension.

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Andrew Christopher Beckham, PT Bumi Resources Tbk - CFO & Director [13]

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So yes, Arutmin is in process and is ahead of KPC. So we'll wait for Arutmin. As soon as that gets in, then we expect KPC to follow.

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Dileep Srivastava, PT Bumi Resources Tbk - Corporate Secretary & Independent Director [14]

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[Vikash], getting back to your question on volumes, 21.5 million tonnes is what we are (inaudible) in the first quarter of this year, which is a 3% increase over quarter 1 last year. Our issue really has been the drop in the price. In quarter 2, we would still be looking at a number which is around the 20 million tonnes, give us maybe 0.5 million tonnes this way or that rate, which essentially means in the first half of this year, we can (inaudible). And our guidance for the year, our situation hopefully (inaudible) the CCoW (inaudible), we believe our guidance of a minimum of (inaudible) in the first half in a very critical challenging periods. We can make up right last year. We can probably do a level of -- currently, we are looking at a little over 85 million, (inaudible) 87 million. But our guidance is 85 million to 90 million at this point of time, but we can possibly do better (inaudible).

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Soo Chong Lim, JP Morgan Chase & Co, Research Division - Analyst [15]

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Yes. Maybe just 1 question for me before we open up for more question. Since we are on the subject, right, there are some article about Air Products that invest like 2 billion in just coal to methanol plan. What is the -- what is actually Bumi involvement? Are you going to make any contribution? Or it just could be purely attractive supplier? Or how -- what's the role there and how that's going to help you? And is it something for -- something that's really going to happen? Or just more (inaudible) at this point in time?

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Andrew Christopher Beckham, PT Bumi Resources Tbk - CFO & Director [16]

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Look, KPC would be the main beneficiary of this. It will supply anything up to about 6 million tonnes. I understand totally discussions have been had. There's nothing else at the moment that Bumi would be involved in. But that things can be developed there. But at the moment, it's just the supply of coal into Air Products, coal gasification. And with the idea, as Dileep mentioned, then we could even get a 20-year extension to the IUPK or even get 10 years and then another 10 years based on this downstream supply. So that's where you see.

And as to the viability and credibility, look, you have to ask Air Products. They're a -- I understand they're a major corporation in America. I wouldn't expect them to make these sort of announcements without a lot of work being done already. So I can only go on that.

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Dileep Srivastava, PT Bumi Resources Tbk - Corporate Secretary & Independent Director [17]

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I think, Soo Chong, just to add to what Andy has said. At this point of time, our involvement and interest in the potential supply as a part of that 6 million tonnes of gain for this project, and our angle basically is being a key supplier to a national priority project that (inaudible) catalyzes hopefully for us a longer lease extension for KPC, which will be the clinical supply of (inaudible). A couple of years or 3 or 4 years down the road, depending upon how our debt restructuring are build (inaudible), we can always take a view whether there should be a larger participation or not. But at this point in time, our priority is debt repayment, and that is what we are going for, and we are interested in supplying coal for this project and getting a lease life extension by the additional (inaudible) possible (inaudible).

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Operator [18]

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We have the next question from the line of Oon Jin Chng from HPS Investment.

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Oon Jin Chng, [19]

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A few questions on my side. One on the Arutmin. Just want to understand the -- I just want to make sure I heard you clearly. The fourth quarter, I think, Arutmin produced 1.6 million tonnes of hybrid coal. And 1Q '20, you mentioned that Arutmin produced 1.5 million tonnes. I just want to understand the cash cost ex royalty went from $35 per tonne in 4Q to 29.7 tonnes. One, what were you seeing that brought cash costs down? Or why were the cash costs high in the fourth quarter? That's my first question.

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Andrew Christopher Beckham, PT Bumi Resources Tbk - CFO & Director [20]

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Okay. So that -- just to answer that then. What I call we had -- as we discussed, I think we had an e-mail you on this. The fact was that we booked in the cash because the December numbers are within the 12 months before the extension. We've -- and all the deferred costs we had in the first part of the year, we booked in the Q4 number. So the costs in Q4 looked unusually high because of that extra costs going in there. But if you look overall, you're coming in at about $29 a tonne 4Q '19. And that's where you are in Q1. So yes. So we are at about 29.6 for the year. But that's -- you've got to see the cost has been deferred. But then we took it in the fourth quarter. As the auditor said, you've got to now take all costs as you haven't got the extension. If we had got the extension, we could have moved the cost over probably the next 4 years, but we can't at the moment do that. So that's the first -- your first one. Do you have another one?

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Oon Jin Chng, [21]

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Got it. Yes. Then next one, you mentioned, I kind of missed it, on the interest payment for the principle for Tranche A, coal prices at current levels. Did you mention that 6.5% is based on coal prices at current level, 50 -- let's say, 55 plus/minus on this range, you will still be able to pay 6.5% -- 6% coupon and then the 1.5% would be PIK. Did I hear that correctly?

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Andrew Christopher Beckham, PT Bumi Resources Tbk - CFO & Director [22]

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No, no. In July, we'll still pay the 6.5%, which is the coupon, the cash coupon, that will be paid. We won't be able to pay the 1% PIK because we got this like the overhead payment to be filled up first. So the 1% PIK won't get done in July. So October, we'll guide once we see how July and August prices are going.

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Oon Jin Chng, [23]

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No, this is not -- has nothing to do with where -- I mean, you have not been to do coal prices, but then it's not based on the range where coal price is at level and, hence, cash coupon versus equivalent interest in pay. This is just based on cash flows at current price level, you're able to be at 6.5% in cash coupon, as 1% would be PIK because you have to fill up, as you mentioned, overhead costs.

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Andrew Christopher Beckham, PT Bumi Resources Tbk - CFO & Director [24]

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That's right. That's right. So if -- so you're talking about $6.5 million of interest payment, then you pay $4.5 million. So that's $11 million coming up. So if you've got $12 million, then you will be able to pay the 1%. But if it's only $10 million -- $9 million to $10 million, then we won't be able to do that. And what we don't want to do at the moment is we can't put pressure on a route KPC until we see how Q3 is going. If things will recover and this COVID is done in the last -- over the 3- or 4-month period, we're all very happy and we'll be paying full interest come October and hopefully a bit of principal. But all the analysts and forecasts are we're here for 12 months. So we can't be too careful. I mean as you can see, as I quoted, the cash in KPC and Arutmin is still okay, still good. So we're not in a desperate situation at the coal company level. But we can't take the risk until we see prices firmly recover, and the markets confirm that.

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Oon Jin Chng, [25]

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Understood. Then my last question is on your refinancing plans and you look forward, clearly has changed for coal prices as (inaudible). Can you please give us an update in terms of the status?

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Andrew Christopher Beckham, PT Bumi Resources Tbk - CFO & Director [26]

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Look, I mean, the positive...

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Oon Jin Chng, [27]

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(inaudible) thus far. (inaudible)

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Andrew Christopher Beckham, PT Bumi Resources Tbk - CFO & Director [28]

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Yes. Look, the positive thing is that we have the very clear guidance on the extension now. Therefore, more concrete discussions can be had. There's a lot of ways to try and work out. What we're trying to do is make sure that there's no need for -- so we can't refinance everyone and without any adjustments to their principal amounts. So we are discussing with a number of parties, major parties, of course, and the Board, what's the best approach in the current situation. Naturally, the -- well, probably 52% of the Tranche A and B is held in China currently. So that's one area that we have to discuss. And then (inaudible) larger holders as well to try and get a deal that will work for everyone. I think give us another -- this next few months, and hopefully, we will be able to come up with something. Subject to the market recovering, of course, no one's going to do a deal while prices are so depressed, right? And it's hard to try and justify it, unless we look at some sort of interest rate that increases as prices increase.

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Operator [29]

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We have the next question from the line of (inaudible) from Allianz Global Investors.

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Unidentified Analyst, [30]

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I just want to have more general market update on China's side of the demand. On this slide, I think the (inaudible) interest is still very (inaudible) you've provided. So coming into May, June, what -- is there more improvement? And what are you seeing on the (inaudible)? I think just now, it wasn't much very clearly explained as well. If you can just provide more color on this.

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Andrew Christopher Beckham, PT Bumi Resources Tbk - CFO & Director [31]

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Yes. Look, I mean, China's demand is definitely there. It's definitely -- we're getting a number of tenders from China that we've been awarded. So I can say that demand for Indonesian coal is definitely much stronger because -- I think, because they're not taking Australian coal. How long that will continue? Really, I think, China needs exports to increase. I think they've stated that themselves. And I think until we see the world economy grow or get back out of the -- get back to normal, I know that will be the problem whether China then -- China's extra demand continues, I don't know. We haven't -- all I can tell you is that we are supplying a lot more to China in the Q2, and we'll continue to do that in Q3 if the tenders continue to come out. But I can't tell you -- I mean, it's a world economy question, really.

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Unidentified Analyst, [32]

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Understood. Just on your -- provide us some breakdown on India's coal concerns for you guys improving to 1.5 million to 6 million per tonne per month. So from China, what is their average? And what -- why is that improvement seems so far? (inaudible) million tonnes per month.

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Andrew Christopher Beckham, PT Bumi Resources Tbk - CFO & Director [33]

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Yes. It was -- typically, we're running about 12 million to 15 million tonnes at KPC of Indian coal so -- per year. So from that, you get about 1 million, 1.1 million tonnes. And I think June is 1.5 million to 1.7 million because of the, what do you call it, increase or they didn't take coal in April, May. And so you've seen a bit more of a pickup.

With regards to China, on a total basis, yes, we did about 20% of our total sales in Q1 towards China. India was about 20% as well. And we expect -- normally, China runs about, I think it was -- hang on, I'd just have a look. I think it was around 10 -- 5% to 10% last year was China on total sales. So maybe it's somewhere around 8 million, 9 million tonnes at the most. So you've seen quite a big increase for supplying to China or demand from China.

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Operator [34]

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(Operator Instructions)

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Soo Chong Lim, JP Morgan Chase & Co, Research Division - Analyst [35]

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I think there are no further questions on the line. I think that's -- let's call it end of the conference call. Thanks, Andrew and also thanks, Dileep, for the update. And I presume if you have any questions, you can come to me or you can go directly to the company. Wish all of you have a good evening. Thanks. Bye.

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Andrew Christopher Beckham, PT Bumi Resources Tbk - CFO & Director [36]

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Thanks, Soo Chong.

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Dileep Srivastava, PT Bumi Resources Tbk - Corporate Secretary & Independent Director [37]

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Thank you.

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Operator [38]

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Thank you, sir. Ladies and gentlemen, that does conclude our conference for today. Thank you for participating. You may all disconnect.