General DISTRIBUTION OF PROSPECTUS AND SHARE SUBSCRIPTION ORDER
2178BH 09.05XI2000 dated November 7, 2001 and was published in Official Gazette of the Republic of Indonesia No. 30 dated
April 12, 2002, Supplement No. 3667, as well. The Company altered its name which initially named PT
Bumi Kencana Sakti Eka into PT Golden Energy Mines Tbk., based on the decision of the shareholders of the Company as set
forth in the Deed of Meeting Decision Statement of PT Bumi Kencana Eka Sakti No. 43, dated November 16, 2010, made before
Linda Herawati, SH, Notary in Central Jakarta. Articles of Association have been amended several times
and last modified in accordance with the Deed of Meeting Decision Statement of PT Bumi Kencana Eka Sakti No. 43, dated
November 16, 2010, made before Linda Herawati, SH, Notary in Central Jakarta, the aforementioned Deed of Meeting Decision
Statement of PT Bumi Kencana Eka Sakti No. 43 dated November 16, 2010 has obtained approval from the Minister of Justice
pursuant to Decision No. AHU-54931.AH.01.02.Year 2010 dated November 23, 2010, has been registered in the Company Register
No. AHU-0084940.AH.01.09. Year 2010 dated November 23, 2010 and has been received and noted in the database of Legal
Entities Administration System of Ministry of Justice and Human Rights of the Republic of Indonesia No. AHU-AH.01.10-
30717 dated November 30, 2010 and has been registered in the Company Register No. AHU-0086853.AH.01.09.Year 2010 dated
November 30, 2010, of which contents among others are the
approval of the Companys status alteration from a Closely Held Company to a Publicly listed Company, alteration of all
provisions of the Company’s Articles of Association within the framework of adjustment with the regulation of Bapepam-LK No.
IX.J.1, and alteration of the Company’s name as mentioned above.
The current compositions of Board of Commissioners and Board of Directors are as listed in the Deed No. 13 dated
September 12, 2011, made before Linda Herawati, SH, Notary in Central Jakarta, which has been received and recorded in the
database of Legal Entity Administration System of Ministry of Justice and Human Rights of Republic of Indonesia based on the
Receipt of Notification of Data Changes dated September 19, 2011 No. AHU-AH.01.10-29630, and has been registered in the
Company Register
in accordance
with UUPT
No. AHU-
0075315.AHA.01.09.Year 2011 dated September 19, 2011. The Company is engaged in the business of mining products
trading and mining services. The Company has investments in 12 twelve subsidiaries which 10 ten of the subsidiaries are
engaged in thermal coal mining with caloric value ranges between 5200-6100 kcalkg adb. The subsidiaries’ mining
locations are in South Sumatra, Jambi, South Kalimantan and Central Kalimantan. The Company is also engaged in the
business of coal trading for coal qualities mixing and to meet the needs of certain buyers.
The companys revenue is mainly affected by coal demands and fluctuations in world’s coal prices. Meanwhile, on the
cost side, the major cost component of the Company and its subsidiaries is the mining cost.
The amount of production has increased from year to year. In 2008, the Company through its subsidiaries produced 1.3
million tons of coal. The amount of production increased to 1.5 million tons in 2009, 1.8 million tons in 2010 and 1.8
million tons in the six-month period ended June 30, 2011. The following is a summary of historical production data in
the last 3 three years:
Block Product ion in t ons
Period of 6 six mont hs year 2011
2010 2009
2008 BIB
1,167,117 1,118,046
1,182,669 1,252,305
KIM 615,367
638,206 353,834
- TKS
53,383 8,569
- -
TOTAL 1,835,867
1,764,821 1,536,503
1,252,305
Note: KIM was acquired by the Company in May 2009
Through the mining supervision cooperation, the Company obtained additional coal production as much as 265 thousand
tons of coal in 2010 and 543 thousand tons of coal during the six-month period ended on June 30, 2011 from mining area of
TBA, a third party. Company has a long-term Sales and Purchase
Agreement of coal and Mining Supervision Cooperation Agreement between the Company and ASC, to conduct off-take of coal and
mining supervision in the area of TBA. ASC is a third party that has Sales and Purchase Agreement of coal with TBA. By
doing mining supervision, the total production performance of the Company is as much as 2.0 million tons in 2010 and 2.4
million tons in the six-month period ended on June 30, 2011. In the Companys financial statements, the coal produced from
the mining area of TBA is recognized as coal sales and purchase transactions.
From the Sales, currently, the Company sells coal to the domestic market in Indonesia and export markets to meet the
needs of customers which mainly consist of power plants, paper factories, cement industries and coal trading companies who
makes a purchase of coal for resale. Export sales in 2010 were recorded dominating by 64 of the total Companys sales.
Exports are made to various customers, especially China, India, and Thailand. 31 of the Companys coal sales were made
under coal contract sales agreement, with the coal selling price was negotiated and adjusted annually or in shorter term
based on the quality and specification of the coal with reference to the coal price prevailing in the market.
Meanwhile, 69 of coal sales in 2010 were made in the spot market.
In line with the increase in production, the number of sales has increased from 1.2 million tons in 2008, to 1.6
million tons in 2009, 1.5 million tons in 2010 and reached nearly 2 million tons in the six-month period ended June 30,
2011. Meanwhile, the sales value was fluctuating following the selling price and the amount of coal sales. The coal sales
volume data and historical sales value in the last 3 three years is as follows:
Coal Sales Volume in Tons Sales Value in m illion Rupiah
2008 2009
2010 June 2011
2008 2009
2010 June 2011
BIB 1,247,110
1,214,951 837,237
1,291,834 447,387
518,920 280,248
510,585 KIM
- 353,834
614,342 629,780
385,617 187,345
309,601 336,244
TKS -
- -
34,702 -
- -
13,602 Tot al
1,247,110 1,568,785
1,451,579 1,956,316
833,004 706,265
589,850 860,432
Source: The Company Note:
the total figure is the sum from respective subsidiaries and does not constitute consolidated figures of the Companys
sales
The Company and its subsidiaries recorded a historical gross profit margin and net profit margin for 26.72 and 3.66
in 2010. These gross profit margin and net profit margin increased to 32.63 and 13.24 in the six-month period ended
June 30, 2011.