ITMG – Targeting coal production of 20.2 mn tons in 2024

ITMG – Targeting coal production of 20.2 mn tons in 2024 Indo Tambangraya Megah (ITMG) targets coal production of 20.2 mn tons in 2024 due to the Graha Panca Karsa (GPK) mine with a capacity of 1 mn tons and the Tepian Indah Sukses (TIS) mine with a capacity of 0.4 mn tons which will start operating at the end of March or early April. Furthermore, ITMG targets coal production of 4.6 mn tons and coal sales to be around 24.9-25.6 mn tons in 1Q24. From ITMG' sales target in 1Q24; a) 39% of it, already set with the new coal price, b) 6% of it, to follow the coal index price, c) while, 55% of it, is still in its inventory. Note that, ITMG posted coal production of 16.9 mn tons (+1% yoy) and coal sales of 20.9 mn tons (+11% yoy) in 2023. (Source : Bisnis Indonesia) Comment : We're positive on the news; the boost in production from the new mines has the potential to mitigate some of the effects of the declining coal prices. Looking ahead, the GPK mine is projected to expand from producing 1 mn tonnes annually to 3 mn tonnes annually in the next 2 years.