Energy Earth earmarks Bt15 bn for 5 coal mines
Energy Earth has budgeted Bt15 billion to take over five coal mines to drive its annual revenue to Bt30 billion by 2018.
Managing director Khajohn-pong Khamdee said yesterday that the company was looking for coal mines with production capacity averaging 4 million tonnes a year and reserves of at least 40 million tonnes each.
The strategy to acquire five coal mines for an average cost of Bt3 billion each will boost its reserves to at least 200 million tonnes to support demand for coal for at least 10 years.
The capital-expenditure budget will be financed by internal cash flow, bank borrowing and coal-purchase contracts.
"We appointed KPMG Phum-chai to be the financial adviser for our investment plan," he said.
Energy Earth will also look for more customers by targeting China, Indonesia, India and Cambodia to support its pro-|duction expansion from 2013-18. This will plump up its gross profit margin from 20-25 per cent now to 30-40 per cent over the five-year plan.
It earned Bt627.2 million on revenue of Bt4.36 billion in the first half of this year.
