ADRO - 1H23 operational result

ADRO - 1H23 operational result Adaro Energy Indonesia (ADRO) consolidated production volume increased by +19% yoy to 33.41 mn tons as of 1H23, which is in line with +19% sales volume to 32.62 tons or 51% of 64 mn tons company's FY23 target. ADMR contributed to ADRO sales with +42% yoy coking coal sales to 1.82 mn tons sales, maintaining 3.8 - 4.3 mn tons of metallurgy coal. Its overburden removal reached 140 mn bcm (+27% yoy) with 3.89x stripping ratio. (Source : Company, KBVS) Comment : ADRO's consolidated operational highlight reflected that demand remained solid, metallurgy coal in particular, while maintaining its stripping ratio below FY23 target of 4.2x despite its OB removal climbed which is manageable with an increase of production.