Capex Samindo Resources Next Year Soars 343%
PT Samindo Resources Tbk (MYOH) is an integrated coal mining service provider in Indonesia, preparing a capital expenditure (capex) of USD13.8 million for 2018. This figure jumped 343% compared to 2017 capex.
Investor Relations of PT Samindo Resources Tbk Zaki said that the capex increase is nothing but one of the company's preparations in response to the increase of target charged by clients in 2018.
As announced by the company, the company's overburden production target has increased by 13%, while coal production has increased by 10%.
"Most of the company's capex is allocated for the purchase of heavy equipment in the activity of overburden removal and coal production," he said in Jakarta, Wednesday (13 / 12/2017).
The Company currently has two active contracts for both activities, namely contract with PT Kideco Jaya Agung and contract with Gunung Bayan Pratama Coal. The Company has successfully reached a new agreement.
The cooperation means that the company will continue the mining services contract with four subsidiaries, PT SIMS Jaya Kaltim (overburden removal and coal getting), PT Samindo Utama Kaltim (coal hauling), PT Trasindo Murni Perkasa (coal hauling) and PT Mintec Eternal (exploratory drilling).
Currently, the process of ordering heavy equipment has been done and is expected in the first quarter of 2018 these tools can already be operated. "The company's management decided to postpone the purchase of heavy equipment, due to the condition of the coal industry that has not been conducive," he said.
Throughout 2017, coal prices are relatively stable compared to several years back and next year is predicted to remain stable. "Therefore, our clients are starting to raise production, which of course positively impacts our annual target," Zaki added.
While related to funding, most of the funding for 2018 capex uses the company's internal cash. This is considering the company has enough internal cash surplus.
Until the third quarter of 2017 the company's cash amount reached USD26, 6 million. While the ratio of total debt of the company itself is currently only about 21% of total current assets.