Increases Coal Production, Capex MYOH Soars 343% Next Year
PT Samindo Resources Tbk (MYOH), a coal mining service provider in 2018, which is called as political year, instead plans to increase its capital expenditure (capex) budget. The Company next year will allocate USD13.8 million capex or jumped 343% compared to this year.
Investor Relations of PT Samindo Resources Tbk Zaki said if the skyrocketing capex budget is none other than the preparation of the Company in order to answer the increased target charged by clients in 2018.
"As previously disclosed, the Company's overburden production target has increased by 13%, while the Company's coal production has increased by 10%," he said, in an official statement in Jakarta on Tuesday (12/12/2017).
Later, continued Zaki, most of the capex funds of the Company are allocated for the purchase of heavy equipment on the activity of overburden removal and coal getting. Several heavy equipment targeted by the Company include dump trucks, excavators, cranes, and pumps. The Company currently has two active contracts for the two activities, namely the contract with PT KIDECO Jaya Agung and a contract with Gunung Bayan Pratama Coal. Currently the process of ordering heavy equipment has been done and is expected in the first quarter of 2018 these equipment can be operated.
"For the last two years, the Company's management decided to postpone the purchase of heavy equipment due to the unfavorable condition of the coal industry. In 2017 coal prices are relatively stable compared to several years back and next year is predicted to remain stable. production, which of course has a positive impact on our annual target, "he said.
In terms of funding, most of the funding for 2018 capex will come from the Company's internal cash. This is due to the fact that the Company has sufficient internal cash surplus.
"Up to the third quarter of 2017, the Company's cash amount reached USD26.6 million, while the Company's total debt ratio is currently only about 21% of total current assets," he said.