Bumi shares suspended over local landowner payments

FTSE 250 mining firm Bumi today had its shares suspended after questions raised by an audit delayed its financial results.

by Michael Northcott
Last Updated: 19 Aug 2013

Investors were left concerned today after the Indonesian firm said that a review was underway into ‘the integrity of a number of items on the balance sheet of its subsidiary PT Berau Coal Energy’.

The firm had already announced that it would have to delay the results because of around $38m worth of land compensation payments made at the Berau company, which are unaccounted for. 

That the results will not be ready in April puts the firm in direct breach of financial regulation (Disclosure and Transparence Rules), but the real worry for investors is that the suspension could last some weeks.

The firm said: ‘Bumi expects that this suspension will be lifted on publication of results. The company’s priority and focus is the production of results at the earliest possible date in May.'

Bumi has spent many months in a row with one of the co-founders, Nat Rothschild, who is using the delayed results (and subsequent resignation of finance boss Scott Merrillees) as ammo to call for the entire board to be replaced.

Chief executive Nick von Schirnding said: ‘We are taking all necessary steps to create a clean and transparent company with a balance sheet in which investors can have confidence.’

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