Releasing its audited financial results for 2007, Straits Asia Resources reported sales revenue for the last year of $US250.96 million, a 10% decrease from 2006 figures.
Profit after tax dropped 40.7% from 2006 takings, reaching $US28.563 million for 2007.
But despite the falls in sales and profits, Straits said the company’s balance sheet was “transformed” by its late 2007 acquisition of the Jembayan mine and the Sebuku Northern Leases.
In July last year Straits Asia declared force majeure on its Sebuku mine in Kalimantan in Indonesia, as heavy rainfall disrupted operations.
However by year end not only had the company picked up the Jembayan mine, it had also announced a resources upgrade at Sebuku from 103 million tonnes to 387Mt. The upgrade was attributed to the acquisition of nearby leases.
Straits Asia chief executive officer Richard Ong was keen to portray the company as more than just its flagship Indonesian mine.
“The Straits Asia story is no longer restricted just to the Sebuku mine. The results from Jembayan since we took over operations have been good and the signs are that we should significantly exceed the mine’s 2007 production of 3.96 million tonnes,” he said.
Ong said drilling at Jembayan would commence “as fast as possible”. Meanwhile the Sebuku mine has bolstered its pumping capacity to ensure its ability to withstand the kind of wild weather experienced in 2007.
Ong said in spite of missing its original production target of four million tonnes Sebuku had recovered “extremely well”, as demonstrated by the mine’s record fourth quarter and increased resource upgrades.
Sebuku delivered a record fourth quarter production of 1.21 million tonnes, taking the year’s total production to 3.3Mt.
At the end of 2007 the company showed cash of $US35.7 million, compared to $US23.1 million in 2006. Meanwhile on the debt front, Straits reported a total bank debt of $US220.4 million, compared to $US4 million in the previous year.
Net assets increased from $US48.5 million to $US235.2 million.
Shares in Straits Asia rose slightly to $8.30 before falling to $8.02 in morning trading.
