United Tractor (UNTR) Cut Performance Projections, from Gold to Coal Business

PT United Tractors Tbk.adjusting the target because the corona virus pandemic (Covid-19) has had a significant impact on the company’s business activities in various lines.

PT United Tractors Tbk.cut operational performance guidelines that were set at the beginning of this year in line with the many business challenges caused by the Covid-19 pandemic.

United Tractors Director Iwan Hadiantoro said that the Covid-19 pandemic did not only disrupt business operations.The pandemic is said to have an impact on the decline in the commodity market, especially coal, thus putting pressure on almost all of the company’s business lines.

This prompted the company to adjust its operational guidelines so that they are lower than those set at the beginning of this year, as well as last year’s realization.

The issuer coded UNTR shares cut the target of selling gold at the Martabe mine controlled by a subsidiary of PT Agincourt Resources to only 255,000 ounces to 300,000 ounces by the end of 2020.

Initially, UNTR set a target of gold sales in the range of 360,000 ounces which is also lower than last year’s target of 400,000 ounces in line with mining from deeper layers so that the gold content will be lower.

“The Martabe mine is not yet normal because of Covid-19, so there are still restrictions on mining operations.With this condition, we expect Martabe to sell at the end of the year at the level of 255,000 – 300,000 ounces, said Iwan at Pubex Live 2020, Tuesday (25/8/2020).

Iwan also explained that for next year, assuming the Covid-19 pandemic improves, the company will increase its martabe mining operations so that it can sell around 350,000 ounces again.

For the mining contractor business line through PT Pamapersada Nusantara, the pandemic has also hit partners so that the company expects a decline in performance of around 15 percent compared to last year’s realization.

UNTR changed its performance guidelines to 110 million for production volume and 810 million bcm foroverburden removal(OB) by the end of this year.That figure is lower than the previous guideline of 130 million for production volume.

Meanwhile, the company is cutting coal sales through PT Tuah Turangga Agung to 7.5 million tons to 8 million tons.Meanwhile, the total sales included 1.2 million tons for coking coal.

UNTR has also cut its sales target for Komatsu heavy equipment to only 1,300 to 1,400 units from the original 2,900 units.The Astra Group entity is also targeting sales of Scania and UD Trucks of 200 units each.

Source: https://market.bisnis.com/read/20200825/192/1282978/united-tractor-untr-pangkas-proyeksi-kinerja-dari-bisnis-emas-hingga-batu-bara?utm_source=Line%20Today&utm_medium=Artikel&utm_campaign=Content%20Aggregator