Risk Management DISTRIBUTION OF PROSPECTUS AND SHARE SUBSCRIPTION ORDER
1. Risk of significant coal price fluctuation
Like most companies engaged in the mining industry, the revenues of the Company and its subsidiaries are greatly rely on coal sales which determined by price of the coal. The prices of coal sold by the subsidiaries are determined by numerous factors beyond the control of the Company such as world’s coal price, which can fluctuate significantly following the production capacity and coal consumption patterns of industries that use coal as the main fuel, weather conditions, distribution problems, availability of coal supply from other coal producers, availability of fuels and alternative fuels, the development of technology and employment factors. Based on data from Bloomberg, in general the price of Free-On-Board FOB coal in international trade has increased quite significantly by 354 within 10 years or in an average of more than 35 per year, from US 27.80 per ton in December 2000 to US 126.10 per ton in December 2010. Declining coal prices or world’s coal prices below the overall production costs for a long period of time could negatively impact business operations, financial condition, and the Companys business prospects.2. Risk of increasing fuel price andor raw materials andor
supporting mining materials Fuel is a significant part of the Companys operating costs and fluctuation in fuel prices may affect the profitability of the Company. Based on the requirements in most contracts between subsidiaries and their respective contractors, the increase in most of the raw materials’ price will be the responsibility of concerned company including theParts
» A Brief History of the Company
» Public Offering Capital Structure and Company’s Shareholders Composition
» Business Risks DISTRIBUTION OF PROSPECTUS AND SHARE SUBSCRIPTION ORDER
» Competitive Advantage Business Strategy Summary of Financial Highlights
» Dividend Policy DISTRIBUTION OF PROSPECTUS AND SHARE SUBSCRIPTION ORDER
» OF THIS PROSPECTUS Material Case
» Information on Subsidiaries PENAWARAN UMUM PERDANA
» Summary of Strategic Agreement
» Plan of Shares Selling by Majority Shareholder of the
» CONVERTIBLE BONDS DISTRIBUTION OF PROSPECTUS AND SHARE SUBSCRIPTION ORDER
» General DISTRIBUTION OF PROSPECTUS AND SHARE SUBSCRIPTION ORDER
» Factors Affecting the Business Activities and Operation Results
» Material Accounting Policies DISTRIBUTION OF PROSPECTUS AND SHARE SUBSCRIPTION ORDER
» Finance A. Growth of Revenues, Expenses and Profit
» Financial Ratio Liquidity DISTRIBUTION OF PROSPECTUS AND SHARE SUBSCRIPTION ORDER
» Capital Expenditure DISTRIBUTION OF PROSPECTUS AND SHARE SUBSCRIPTION ORDER
» Risk Management DISTRIBUTION OF PROSPECTUS AND SHARE SUBSCRIPTION ORDER
» Risk of significant coal price fluctuation
» Risk of increasing fuel price andor raw materials andor
» Risk DISTRIBUTION OF PROSPECTUS AND SHARE SUBSCRIPTION ORDER
» Risk from DISTRIBUTION OF PROSPECTUS AND SHARE SUBSCRIPTION ORDER
» Risk from limited services and coal transportation routes Risk of declining coal quality
» Risk of coal oversupply Risk of failure or delay in the implementation of the Company’s strategy
» Risk of mine reclamation and rehabilitation requirements
» Risk of stock price fluctuation
» Risk of possibility of no dividend payment
» Risk of terminated or revoked coal mining rights by the Government
» Risk of illegal mining Risk associated with the local population in mining areas
» Risk of labor actions and demonstration
» Risk of DISTRIBUTION OF PROSPECTUS AND SHARE SUBSCRIPTION ORDER
» BRIEF HISTORY OF THE COMPANY
» DEVELOPMENT OF COMPANY’S SHAREHOLDING STRUCTURE
» MANAGEMENT AND SUPERVISION DISTRIBUTION OF PROSPECTUS AND SHARE SUBSCRIPTION ORDER
» ORGANIZATION STRUCTURE OF THE COMPANY HUMAN RESOURCES
» BRIEF DESCRIPTION OF SHAREHOLDERS IN THE FORM OF LIMITED LIABILITY COMPANIES
» BRIEF DESCRIPTION OF THE SUBSIDIARIES
» LICENSING DISTRIBUTION OF PROSPECTUS AND SHARE SUBSCRIPTION ORDER
» DESCRIPTION ON COMPANY’S ASSETS
» INSURANCE DISTRIBUTION OF PROSPECTUS AND SHARE SUBSCRIPTION ORDER
» MATERIAL AGREEMENTS DISTRIBUTION OF PROSPECTUS AND SHARE SUBSCRIPTION ORDER
» TRANSACTIONS WITH RELATED PARTIES
» LEGAL PROCEEDINGS INVOLVING THE COMPANY
» OVERVIEW BUSINESS ACTIVITIES AND PROSPECTS OF THE COMPANY AND SUBSIDIARIES
» BUSINESS PROSPECTS BUSINESS ACTIVITIES AND PROSPECTS OF THE COMPANY AND SUBSIDIARIES
» COMPETITIVE ADVANTAGE BUSINESS ACTIVITIES AND PROSPECTS OF THE COMPANY AND SUBSIDIARIES
» COAL PRODUCTS BUSINESS ACTIVITIES AND PROSPECTS OF THE COMPANY AND SUBSIDIARIES
» COAL MINING PROJECTS BUSINESS ACTIVITIES AND PROSPECTS OF THE COMPANY AND SUBSIDIARIES
» EXPLORATION ACTIVITIES BUSINESS ACTIVITIES AND PROSPECTS OF THE COMPANY AND SUBSIDIARIES
» LAND COMPENSATION AND CULTIVATED PLANTS MINING OPERATION ACTIVITIES
» PRODUCTION INFRASTRUCTURES AND FACILITIES
» COMPETITION BUSINESS ACTIVITIES AND PROSPECTS OF THE COMPANY AND SUBSIDIARIES
» BUSINESS STRATEGY AND DEVELOPMENT PLAN
» GOOD CORPORATE GOVERNANCE CORPORATE SOCIAL RESPONSIBILITY
» ENVIRONMENTAL IMPACT ASSESSMENT EIA
» OCCUPATIONAL HEALTH AND SAFETY K3
» Energy content Ash BUSINESS ACTIVITIES AND PROSPECTS OF THE COMPANY AND SUBSIDIARIES
» Sulfur BUSINESS ACTIVITIES AND PROSPECTS OF THE COMPANY AND SUBSIDIARIES
» Moisture Content or Humidity
» DIVIDEND POLICY Prospektus English GEMS
» Non-resident Tax Payer TAXATION
» Resident Tax Payer Indonesian Shareholder
» UNDERWRITING SYNDICATION COMPOSITION TAXATION
» DETERMINATION OF OFFERED PRICE IN THE PRIMARY MARKET
» Legal Consultant: MAKES PARTNERS
» Public Accountants: KAP MULYAMIN SENSI SURYANTO Public Notary: LINDA HERAWATI, S.H.
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