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Resources Prima Group reports Q1 net loss of US$313,000 on "going concern" basis
SUSPENDED Indonesian coal miner Resources Prima Group saw a net loss of US$310,000 and revenue of US$313,000 for the first quarter ended March 31, with the group saying in its results announcement on Tuesday that it will be able to meet all its debts and obligations as they fall due in the 12 months from Dec 31, 2017.
The group has until Sep 28 to submit a proposal for the resumption of trading. Its main operating subsidiary, PT Rinjani Kartanegara, entered bankruptcy proceedings in October last year.
The group reported no revenue for the first quarter of the 2017 financial year, but saw net profit of US$1.1 million, due to a US$1.6 million net profit from discontinued operations.
Resources Prima said it is currently in advanced discussions with an investor to provide financing to the company, and is confident that the negotiation of the definitive documentation will be completed in the near term. It added that execution of the definitive documentation will give more certainty on the company's cashflows, secure the company's financial position and ensure it can meet its debts and obligations.
"In view of the above, the company has updated its profitability and cashflow analysis for the 12-month period from the reporting date up to 31 December 2018 and the analysis confirms that the company is able to meet all of its debts and obligations during the forecast period," said Resources Prima.
"The board is therefore of the view that the company is currently able to demonstrate that it can continue as a going concern and as such the first quarter financial statements of the company and group for the financial period ended 31 March 2018 have been prepared on a going concern basis."