Cokal Limited (ASX:CKA) achieves first revenue from sale of metallurgical coal

Cokal Limited (ASX:CKA) has successfully sold approximately 23,000 metric tonnes of metallurgical coal to International Commodity Trade Pte Ltd (ICT) from the Bumi Barito Mineral (BBM) coal mine. The sale includes 8,000 metric tonnes of coking coal and 15,000 metric tonnes of PCI coal, generating immediate revenue for BBM and Cokal. As per the terms of the International Coal Marketing Agreement (ICMA), Cokal has already received 80% of the anticipated revenue from this sale by ICT. The company has also announced its anticipation of commencing domestic sales of coking coal and PCI coal to local end user clients in Morowali, Sulawesi in early 2024.

Executive Commentary on Achieving First Revenue from Coal Sales

Cokal is pleased to announce the successful sale of metallurgical coal to International Commodity Trade Pte Ltd, marking a significant milestone for the company. This achievement not only generates immediate revenue for BBM and Cokal but also demonstrates the superior pricing and terms available in the export market. We are also looking forward to commencing domestic sales in early 2024, further strengthening our position in the market.

Summary of Cokal's Achievement and Outlook

Cokal Limited (ASX:CKA) has achieved a significant milestone by successfully selling 23,000 metric tonnes of metallurgical coal to International Commodity Trade Pte Ltd, resulting in immediate revenue generation. The company's anticipation of commencing domestic sales in early 2024 reflects its commitment to further expand its market presence. Cokal's strategic partnership with ICT has facilitated the sale and payment of proceeds in the export market, enhancing the conversion of coal stockpiles to cash in a timely manner. The company's forward-looking statements emphasize its plans, strategies, and objectives for future operations and business growth, while acknowledging the inherent risks and uncertainties associated with the industry. Cokal remains focused on its goal of becoming a prominent metallurgical coal producer with a global presence, leveraging its projects in Central Kalimantan, Indonesia.