Highlights

  • Repayment of the US$20 million Capital Sum was extended by three years to 15 January 2030.
  • Phase 2 RKAB approval was received in mid-September 2026, and mining recommenced in October.
  • No barging or sales occurred during the quarter due to low river levels.
  • The next coal shipment is tentatively scheduled for mid-November 2026, subject to river conditions.

Cokal Limited (ASX:CKA) has released its quarterly report for the period ended 30 September 2026. The metallurgical coal company reported a constrained quarter at its BBM project in Indonesia but secured greater financial flexibility and restarted mining after the quarter.

Financial Flexibility Amendments

BBM and International Commodity Trade Pte Ltd (ICT) agreed amendments to provide more financial flexibility amid weak coal markets and Indonesian regulatory changes. Repayment of the US$20 million Capital Sum was extended from 15 January 2027 to 15 January 2030.

Monthly fees for certain periods were deferred to 1 January 2028, with interest accruing at 10% per year. Under the amended Coal Marketing Agreement, ICT will market at least the first 20 million tonnes of BBM production, retaining its 6% marketing fee.

Operations and Logistics

Mining was significantly constrained during the quarter while awaiting Phase 2 RKAB approval, which was received in mid-September 2026. Preparatory works finished after the quarter, and both mining and hauling resumed in October.

No barging took place due to low water levels on the Barito River system, which the company described as a broader industry issue. Road upgrades with contractor Petrosea were completed, along with additional camps, workshops and office facilities. The company is reassessing its 2026 production plan.

Market and Financial Position

The Platts PLV HCC benchmark rose US$28.60/t during the quarter to US$272.10/t, supported by stronger Chinese import demand. The company noted the benchmark may not directly reflect its own product or realised prices.

Cash at quarter end was US$193,000, with undrawn facilities of about US$2.56 million. Total facilities are US$34.36 million, of which US$31.79 million was drawn. The Appendix 5B estimates about three quarters of funding.

Key Takeaways

  • Amendments with ICT ease near-term repayment pressure.
  • Mining and hauling resumed in October after RKAB approval.
  • River conditions continue to affect barging and sales timing.
  • The company has a low cash balance and significant drawn facilities.