ZINC achieves positive outlook from Pefindo

PT Kapuas Prima Coal Tbk (ZINC) achieved continued positive performance during the first half of this year. It was recorded that until the second quarter of 2021, ZINC’s sales reached IDR499.9 billion and net profit reached IDR40.9 billion.

This achievement is inseparable from the strategic steps carried out by ZINC and driven by the increase in commodity prices. In line with this achievement, Pefindo gave a positive rating to ZINC and its Bond I Year 2018 because it was assessed that the cash flow and business position would improve in line with the ongoing expansion.

Evelyne Kioe as Director of ZINC said, With the new rating given by Pefindo from stable to positive, and in line with the process of increasing production capacity that we continue to do. It is hoped that in the future ZINC’s performance can grow and provide positive results for all ZINC stakeholders.”

Evelyne further explained that currently ZINC will still focus on its core business, namely the production of zinc and lead concentrates. However, in line with demand and iron ore reserves, since the end of 2020 ZINC has started to reactivate iron ore mining for sale to the domestic market. Until Semester I-2021, ZINC’s iron ore sales increased by more than 200% or reached IDR22.6 billion.

For information, ZINC is currently increasing its production capacity to reach 564,000 tons of concentrate. This year, ZINC obtained an export quota of 46,000 tons of zinc concentrate and 17,500 tons of lead concentrate. In order to increase production and sales next year, ZINC has also completed the construction of a lead smelter with a production capacity of20,000 tons per year which is planned to be operational by the end of this year.

Source: https://www.idnfinancials.com/news/40927/zinc-achieves-positive-outlook-pefindo