Resources Global Development Limited Delivers Explosive Growth: Coal Mining Expansion and Fleet Upgrade Drive Profits and Shareholder Value

Key Highlights from H1 2025 Corporate Report

Resources Global Development Limited (“RGD”) has delivered a stellar set of results and strategic milestones in the first half of 2025, positioning the company for accelerated growth and potentially significant share price upside. With fresh coal production, major fleet expansions, and a robust financial performance, RGD is rapidly consolidating its dual-engine business model across coal mining and shipping services.

Two Robust Growth Engines Powering RGD

• Coal Mining: RGD holds a 30.1% effective interest in PT Tri Oetama Persada (“TRIOP”), which owns a coal mine in Central Kalimantan, Indonesia. TRIOP commenced production in September 2024 and has already shipped coal to major customers, including China Resources Group. Additionally, RGD maintains a 9.7% effective interest in four other coal mines operated by PT Singaraja Putra Tbk (“SINI”), reflecting a diversified mining portfolio. Coal mining contributed approximately 40% to H1 2025 revenue and 35% to gross profits.
• Shipping Services: Through its subsidiary PT Deli Pratama Angkutan Laut (“DPAL”), RGD operates a rapidly growing shipping fleet. With 31 vessels totaling 292,000 DWT as of June 2025, the shipping segment contributed 59% to revenue and 64% to gross profit in H1 2025. The company serves mainly commodity traders and has diversified its cargo beyond coal to include bauxite, nickel, and granite, capitalizing on domestic shipping demand in Indonesia.

Strategic Coal Mining Developments

• TRIOP Mine Milestones: TRIOP’s mine holds business permits valid until 2031 and boasts over 60 million tonnes in proved and probable reserves (GAR > 4,000 kcal/kg). Production started in September 2024, with 661,600 tonnes produced through H1 2025.
• Operational Improvements: Significant capital expenditure has gone into improving hauling roads to boost output, with logistics optimized for efficient transport from pit to jetty and onward shipping to key anchorage points.
• Management Control: RGD’s CEO, Mr. Francis Lee, was appointed commissioner to the board of PKPK, the listed entity controlling TRIOP, in June 2025, further entrenching RGD’s oversight and alignment of interests in the project.
• Divestment for Focus: In April 2025, RGD divested a 15% stake in SINI, booking a gain of approximately S\$4.4 million above book value, while maintaining a strategic 16.22% equity stake. The move reallocates resources to TRIOP, where RGD has direct management control and higher returns.
• Production Risk: Note that the rainy season (Nov-Dec) could slow TRIOP’s output, a potential short-term risk for shareholders to monitor.

Shipping Services: Fleet Expansion and Market Positioning

• Fleet Growth: The company’s shipping fleet expanded from 26 vessels (252,000 DWT) in June 2024 to 31 vessels (292,000 DWT) by June 2025. Further expansion is planned, with 10 additional TBBG sets (80,000 DWT) being added by the end of 2026, lifting total capacity by 27% to 372,000 DWT.
• Market Dynamics: RGD is uniquely leveraged to Indonesia’s domestic shipping market, largely insulated from global shipping volatility. The expanded fleet supports diversified commodity transport, reducing reliance on coal and broadening revenue streams.

Financial Performance: H1 2025 Surges on Strong Revenue and Profits

• Revenue: Up 74.3% year-on-year to S\$50.7 million, driven by both shipping and the inaugural contribution from coal mining.
• Gross Profit: Increased 20.2% to S\$17.7 million, though gross profit margin narrowed to 35% (from 50.7%) due to lower shipping margins, softer coal prices, and a shift in business mix.
• Net Profit: Rose 24.4% to S\$13.6 million (H1 2024: S\$10.9 million), boosted by the S\$4.4 million one-time gain from the SINI divestment.
• Earnings Per Share: Jumped 60% to 1.6 Singapore cents, with net asset value per share up 33.8% to 17.4 Singapore cents as at June 2025.
• Operating Cash Flow: Robust at S\$17.4 million, supporting continued fleet expansion with a low debt-to-equity ratio of 0.16x.

Dividend Track Record: Commitment to Shareholder Returns

• Dividends: RGD has consistently raised its dividend, paying 0.72 Singapore cents per share for FY2024 (payout ratio of 33%). This upward trend signals management’s confidence in sustainable cash generation and commitment to rewarding shareholders.

Leadership and Governance

• Board Strength: A seasoned leadership team, with a mix of executive and independent directors, underpins RGD’s consistent growth trajectory.
• Market Capitalisation: The company’s market cap stands at approximately S\$105 million as of 15 October 2025, with share price at S\$0.21, reflecting a 480% increase in profit since 2020 and significant fleet growth.

Potential Price-Sensitive Developments for Investors

• Fresh Coal Production and First Shipments to China: With TRIOP mines operational and shipments underway, RGD is poised for significant revenue scaling.
• Strong Cash Generation and Low Leverage: Supports further expansion, dividend growth, and resilience to market shocks.
• One-Time Gains from Strategic Divestment: The sale of SINI shares provides a war chest for reinvestment and strengthens the balance sheet.
• Fleet Expansion: Additional vessel deliveries through 2026 will further boost top-line and capacity, with direct exposure to Indonesia’s domestic commodity boom.
• Management Realignment: Direct control over TRIOP and high-level appointments signal tighter governance and strategic focus.
• Profit Margin Watch: Investors should be mindful of margin pressures from softer coal prices, lower freight rates, and potential seasonal production slowdowns.

Conclusion

RGD’s dual-pronged growth strategy is firing on all cylinders, with both coal mining and shipping segments delivering strong results. The company’s rapid operational scaling, robust financials, and commitment to shareholder returns make it a compelling play for investors seeking exposure to Indonesia’s resource and infrastructure growth. However, margin trends and operational risks such as weather disruptions warrant ongoing attention.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or an offer to buy/sell any securities. Investors should perform their own due diligence and consult with financial advisors before making investment decisions. Past performance is not indicative of future results. The writer is not responsible for any actions taken based on this article.

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