NEWS

Golden Energy Mines (GEMS) Prepares US$ 33 Million Consolidated Capex

golden energy mines

PT Golden Energy Mines Tbk (GEMS) has allocated consolidated capital expenditure (capex) this year of US$ 33 million. This allocation aims to boost production. 

According to Golden Energy Mines (GEMS) Corporate Secretary Sudin SH, this year the company is pursuing a production target of 40 million tonnes, consisting of 65%-67% to meet the needs of the export market, while 33%-35% to meet the domestic market.

“So, we are preparing a consolidated capex for 2023 of $33 million,” Sudin told Investor Daily recently.

The company, he said, will use the capex allocation to maintain the hauling road , then expand the Bunati port in South Kalimantan, and increase coal stockpile .

Later, most of GEMS’ coal will be sold to China and the rest will be released to the domestic market. Bearing in mind, the potential for the local market and Southeast Asia is still good.

As of October 2022, the company has realized 97% of coal production from several concessions. The first concession came from PT Borneo Indobara (BIB) with a land area of ​​24,100 hectares (ha) in South Kalimantan. BIB managed to contribute 25.4 tonnes until September 2022.

The next largest concession is PT Barasentosa Lestari with a land area of ​​23,300 ha in South Sumatra. While the other three concessions namely PT Kuansing Inti Makmur, PT Trisula Kencana Sakti, PT Wahana Rimba Lestari, and PT Berkat Satria Abadi (EMS GRoup) each have concessions of 24,100 ha, 2,610 ha and 4,739 ha.

Based on the financial reports until September 2022, GEMS posted a cost of goods sold of US$ 1.132 billion, an increase compared to costs in the same period the previous year of US$ 572.19 million. 

Meanwhile, in terms of gross profit, the issuer of the Sinar Mas Group recorded growth of US$ 931.69 million, compared to the realization in nine months of 2021 of US$ 485.45 million. As a result, profit for the period attributable to owners of the parent entity reached US$ 472.87 million, an increase of 140.6% from the third quarter of 2021 of US$ 196.52 million.

Source: https://investor.id/market-and-corporate/319851/golden-energy-mines-gems-siapkan-capex-konsolidasi-us-33-juta

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