Message from the Chairman
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Phisudhi Phihakendr

As a result of the recovery of the Coal price in 2016, the stock prices of domestic coal players across the industry have improved and regained confidence despite the persistence of sluggish demand. The Indonesian government’s benchmark thermal coal price in September 2016 increased to USD63.93 per Metric Tons which marked the new high for the past 17 months as it has consistently improved since May 2016.

Meanwhile in China, which is the main market for Indonesian Coal, a cap on the domestic coal production has been imposed, which resulted in requirement to import more coal particularly by the Chinese power producers. With increase in demand and restriction in supply, the coal price rapidly increased to USD113 per Metric Tons in November 2016 which has reflected the recovery of the coal industry.

Although 2017 will be more sustainable for coal industry, the management team will continue to closely monitor the coal market in order to strategize and execute plans for growth. The company will be protected against both positive and negative unforeseeable events through our financial policy, cost control and management and rigid operation. Moreover, in terms of strategy, the company will strive to find new business to promote financial sustainability and total shareholders’ return in the long run.

In addition to the management principles aforementioned, the company has issued a debenture of 4,000 million Baht which will be matured in 3 years (2019) with fixed interest of 4.65%. This was offer ed to institutional and major shareholders on 3-9 October 2016. TRIS Rating has affirmed our rating at “BBB-“ with “stable” outlook.

In any cases, from the business point of view, the company focuses on good governance with transparent management, environmental policy along with the corporate social responsibilities.

On behalf of the board of directors, management team and every employee, I would like to thank the shareholders, domestic and international customers, financial institutions as well as all rela ted parties for the continuing trust and support to the company. The company keeps the promise to strive for the most benefits of all related parties through the good governance, transparent management and corporate social responsibilities for the sustainable growth in line with the company’s vision.