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GEO ENERGY RESOURCES LIMITED | Annual Report 2012 15
Financial Performance Review
The Group’s FY2012 revenue grew 14% year-on-year (“y-o-y”) as the Group recorded an increase in coal sales after
commencement of operations as a mine owner cum operator in respect of the BEK Mining Concession (“BEK Mine”) in
January 2012.
The increase in revenue was largely due to an increase in coal production, from 0.8 million tonnes in FY2011 to 1.5 million
tonnes in FY2012, an increase of approximately 88%. In particular, coal production in the Group’s BEK Mine surpassed
the planned target of 700,000 tonnes by 264,000 tonnes as the Group produced 964,000 tonnes of coal from the BEK
Mine in FY2012.
As at 31 December 2012, the Group owned and operated a comprehensive and diverse 186-strong fleet of mining
equipment. Subsequent to year end, as part of the Group’s planned increase in coal production, approximately US$2.6
million of the Group’s IPO proceeds (US$63.7 million) was utilized towards the acquisition of additional mining equipment
and machinery.
The Group’s FY2012 gross profit margin increased 7.5 percentage points from 38.5% in FY2011 to 46.0% in FY2012, in
line with a 36% surge in gross profit y-o-y to US$36.2 million, mainly due to the increase in coal production as well as a
lower average stripping ratio from the BEK Mine as compared to that of the coal cooperation contracts.
2,000
1,500
1,000
500
0
2,000
1,500
1,000
500
0
FY2010
FY2009 FY2009 FY2010 FY2010 FY2011 FY2011 FY2012 FY2012
Coal Sales (‘000 tonnes) Revenue (US$’million)
Coal Production (‘000 tonnes)
Coal Cooperation Contracts BEK Mine
Coal Cooperation Contracts
BEK Mine
FY2011 FY2012
593
964
853
787
100
75
50
25
0
406
13.7
50.1
69.2
78.8
763
910
945
655