Heaptalk, Jakarta – Archi, Indonesia’s giant gold mining company, reports it has gained a consolidated revenue of US$142.4 million for the first semester of 2021, an increase of 9% compared with US$130.1 million in the first semester of 2020. By this revenue, the Company bags a net profit of US$32.6 million or jumped 24% from the first semester last year.
The factor that boosts the profit was mainly from the average gold selling price that rose 9% this year from US$1,656 per oz to US$1,802 per oz. In addition, the second-biggest gold mining firm in Southeast Asia also has managed to find the most effective ways to lower the mining cost by 16%, from US$3.35 per ton to US$2.83 per ton. Archi’s EBITDA for the first semester of 2021 also is up by 5% to US$75.5 million, compared to US$71.7 million in the first semester of 2020.
Archi’s President Director, Kenneth Ronald Kenney Crichton said, “Archi’s earnings results in the first semester of 2021 benefitted from higher gold price compared to the same period last year. We expect 2022 will be even better as our expanded gold processing plant achieves full efficiency and will directly result in higher gold production.”
Currently, the Group focuses to scale up its exploration activities in its Toka Tindung Gold Mine, which is operated under Archi’s wholly-owned Subsidiaries, PT Meares Soputan Mining (PT MSM), and PT Tambang Tondano Nusajaya (PT TTN), both in the Eastern Corridor and Western Corridor. The goal of these activities is to speed up the finding of new mineral resources and ore reserves, with the expectation can bring 5% to 10% growth over gold produced in the previous year.
The euphoria vibes to locate new mining resources was driven by the felicitous result shown by the previous exploration from the West Corridor in Bima. After the exploration process, the Company found out that the new place located approximately 15 km west of the Toka Pit, contains high-grade gold. This finding is hoped can jack up gold production from 81.6 koz in the first semester of 2021 to around 138 koz to 148 koz in the second semester of 2021 with the total gold production is about 220 koz to 230 koz for the full year 2021. The target in the second semester was far beyond the total of gold production in the same terms year on year which was only around 120 koz.
“Our exploration team is making excellent progress in the Western and Eastern Corridors, and we anticipate further success with encouraging early-stage results recently coming through. We are also very pleased with the high-grade results from our exploration drilling in the Bima gold deposit at Western Corridor, which will provide Archi’s additional new potential reserves in the future,” said Kenneth.
The Company expects to fully support its capital expenditure requirements going forward from cash inflows from operating activities. As of 30th June 2021, the Company’s net cash position, excluding restricted cash was at US$16.1 million, lower compared to US$40.2 million as of 31st December 2020, primarily due to a significant increase in cash outflows for investing activities, mainly for the addition of fixed assets and mine properties. In early July 2021, the Company had used a US$59.3 million portion of the IPO proceeds to repay in part of long-term bank loans, which will be due in 2025. Therefore, Archi’s debt to equity (DER) ratio is now at 1.7 times, a significant improvement compared to 4.1x as of 31st December 2020.
