Will Increase Production, Samindo Resources (MYOH) Prepare Capex US $ 13.8 Million
PT Samindo Resources Tbk. (MYOH) is preparing a capital expenditure of US $ 13.8 million next year to boost coal production at the Kideco mine following the renewal of the mining services contract.
Investor Relations PT Samindo Resources Tbk. Ahmad Zaki said capital expenditure (capex) next year amounted to US $ 13.8 million or an increase of 343% compared to this year's capex.
He said the increase in capex is nothing but one of the company's preparations to respond to the increase in targets charged by clients in 2018.
According to him, most of the capex will be allocated for the purchase of heavy equipment on overburden removal and coal production activities.
As for, he continued, some heavy equipment that became the company's target such as dump trucks, excavators, cranes and pump. He revealed that currently the process of ordering heavy equipment has been done and is expected in the first quarter of 2018, the tools can already be operated.
"Lately, the management of the company decided to postpone the purchase of heavy equipment due to the condition of the coal industry that has not been conducive," he said on Tuesday (12/12/2017).
Zaki rate throughout 2017 coal prices are relatively stable compared with several years earlier and next year is predicted to remain stable. Therefore, he continued, the company's clients began to increase production, which of course has a positive impact on the annual target of MYOH.
According to him, most of the funding for 2018's capex will use the company's internal cash. The reason, the company currently has an adequate internal cash surplus.
As for, until the third quarter / 2017, the company's cash amount reached US $ 26.6 million. Meanwhile, the company's total debt ratio is currently only about 21% of total current assets.