Resources Prima shares rebound strongly from last week's plunge

SINGAPORE - Shares of Indonesian coal miner Resources Prima jumped 24.5 per cent on Tuesday after their prices crashed last week.

The Catalist-listed stock climbed 2.5 cents to 12.7 cents on 89.8 million shares traded.

This sharp gain came a day after the company said in a Singapore Exchange (SGX) filing that it remained confident of its long-term growth prospects.

"Operationally, we continue to move in the right direction as reflected by the growth in our production volume as well as the strengthening of our business model which includes a diversification of our income stream," said executive chairman and chief executive Agus Sugiono in the statement.

The company also said in the statement that its mining and sales volumes have continued to grow, and using its own fully integrated coal mining facilities has helped it lower costs.

It has applied for a permit that could potentially lead to an increase in its coal reserves and resources, it added.

The SGX had said on Friday last week that investors should exercise caution when trading in the counter.

This was after the company said on Thursday night last week, in response to an SGX query, that it was not aware of any reasons that could possibly explain the unusual trading in its securities that week.

Resources Prima shares had plunged 8.2 cents, or 44.8 per cent, to 10.1 cents last Thursday on 105.7 million shares traded. It then called a trading halt on Friday and lifted that on Monday morning.