The Indonesia Stock Exchange (IDX) suspended trading of the shares of coal miner Bumi Resources between 1 July and 4 October 2016 because the company had not reported its financial report (covering the corporate earnings of 2015) in time. On Tuesday (04/10) Bumi Resources, part of the controversial Bakrie Group conglomerate, finally announced that it recorded a net loss of USD $1.9 billion over 2015. This poor performance was mainly attributed to the impairment of assets and write-offs for its receivables.
Interestingly enough, despite the company's record loss and ongoing debt troubles, shares of Bumi Resources jumped 18 percent to IDR 80 a piece in the two days after the trading suspension was lifted by the Indonesia Stock Exchange on Tuesday 4 October 2016. This shows that there are still loyal investors who perhaps believe that the glory days of the 2000s commodities boom can return for one of the largest mining companies in Indonesia. These investors are apparently not impressed by the company's USD $3 billion in negative equity (and perhaps influenced by the recently rallying coal prices).
On Friday (06/10), however, shares of Bumi Resources tumbled 10 percent to IDR 72 a piece, possibly due to profit taking.
Bumi Resources' debt has now reached USD $9 billion, and USD $3.6 billion of this total debt will mature within the next twelve months, implying the company is in need of further debt restructuring. Dileep Srivastava, Director of Bumi Resources, said he is positive that the company can obtain a suspension of payment in order to make Bumi Resources financially healthy again. The company targets to sell 85 million tons of coal in full-year 2016, up from 79.3 million tons of coal sold in 2015.
Meanwhile, in the first six months of 2016 Bumi Resources recorded a net loss of USD $11.8 million, improving significantly from a net loss of USD $566 million in the same period one year earlier. However, this improvement was the result of the divestment of its 24 percent stake in Newmont Nusa Tenggara.