Straits’ planned de-merger of the group would spin off its Indonesian coal assets to its coal vehicle, Straits Asia Resources, which would then be listed on the Australian Securities Exchange.
Singapore-listed subsidiary Straits Asia Resources has acquired coal interests in Madagascar and Brunei for $US100.3 million ($A115.7 million) as part of the proposed restructure announced in April.
Straits chief executive Milan Jerkovic said the group was on track to complete its de-merger and dual listing by mid-October 2008, which would provide current investors with a pure coal investment vehicle and should unlock further value for shareholders.
“The acquisition of Straits’ Madagascar and Brunei coal interests will give Straits Asia a good pipeline of very prospective projects and a solid start to its new ambitions to compete in the market as an emerging, independent global coal company,” Straits said.
Straits Asia will look to sell a minimum of 9 million tonnes in the 2008 calendar year and install infrastructure for the expansion to 19Mt per annum with a sales target of 11Mtpa in 2009.
“Straits Asia expects that it will reach new records for production and sales this year and next year,” the company said.
“With the continued strength of demand for thermal coal taken with the supply constraints that still exist, the financial years of 2008 and 2009 are expected to result in very positive returns for shareholders.”
The Perth-based company’s $6 million net loss has decreased 62% in comparison to last year’s full-year net loss of $16.1 million.
Straits said the result was impacted by a number of one-off non-cash items including a $20.5 million write-down of non-core and dormant exploration interests and the amortisation for accounting purposes of $16.1 million stemming from the close-out of the Tritton hedge book in December.
Sales revenue for the half year was $1.5 billion, compared to full-year 2007 revenue of $3.7 billion, while earnings before interest, taxes, depreciation and amortisation (EBITDA) totalled $94.2 million, compared to $36.3 million in 2007.
Shares in Straits closed slightly up at $A5.59 yesterday.
