United Tractors (UNTR) Aims to Increase Gold Mining Business Performance

PT United Tractors Tbk ( UNTR ) is aiming to improve the performance of its gold mining business line.

PT United Tractors Tbk Corporate Secretary Sara K. Loebis explained, gold sales as of May 2023 had reached 52.57% of the set target.

“We have sold 92,000 ounces of gold, still in line with the full year target of 175,000 ounces,” Sara told, Tuesday (18/7).

Sara added, from a financial perspective, the gold mining business contributed around 5% of the company’s total revenue in the first quarter of 2023.

As an illustration, UNTR recorded a profit attributable to owners of the parent entity of IDR 5.3 trillion. This figure increased by 23% from IDR 4.3 trillion in the same period in 2022.

The increase in net profit was in line with the increase in revenue. Quoting the financial report on the Indonesia Stock Exchange’s website, Tuesday (18/4), UNTR’s consolidated net income reached IDR 34.9 trillion, an increase of 25% when compared to the same period in 2022.

It’s just that the net income of the gold mining business unit until March 2023 fell by 14% to IDR 1.7 trillion. This decrease was in line with the decrease in gold sales volume from the Martabe gold mine.

Sara revealed, currently UNTR is preparing the Sumbawa Jutaraya (SJR) mine to be able to start operating in 2024.

“SJR Mine production in the early year was estimated at 40,000 ounces per year and the following year it increased to 60,000 ounces,” added Sara.

Just so you know, UNTR through its subsidiary, PT Pamapersada Nusantara, acquired a 75.5% stake in PT Sumbawa Jutaraya (SJR), a gold mining exploration company in Sumbawa, West Nusa Tenggara (NTB) in 2015.

The presence of the SJR mine will increase UNTR’s gold production, which has so far been sourced from the Martabe Mine which is run by PT Agincourt Resources.

Sara continued, processing facilities for the two mines had been prepared. For this reason, the company currently has no plans to build a new processing facility.

“The capex allocated for the two mines this year is around US$ 190 million, this is to maintain the existing facilities,” concluded Sara.

Image source >>> UNTR

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