Had experienced weather constrained, Samindo Resources (MYOH) will boost performance in Semester II

KONTAN.CO.ID - JAKARTA. PT Samindo Resources (MYOH) will boost its operational performance throughout the second semester of this year. Because, in the first semester period, MYOH's operational performance was constrained by weather.

Samindo Resources Director of Operations and Development Ahmad Saleh explained, entering the Second Quarter rainfall intensity is predicted to be lower than the First Quarter. However, the actual conditions occurring in the field of rainfall continue to increase in April and June.

"Well, this yesterday is quite an obstacle in our operational activities. Weather conditions are quite a challenge," Saleh said during a media meeting in Jakarta, Wednesday (8/28).

Even so, Saleh revealed that MYOH's financial and operational performance was maintained. From the financial side, MYOH recorded an increase in revenue to US $ 120.87 million, or an increase of 8.1% compared to revenue in the same period last year.

But in terms of profit, MYOH indeed recorded a decrease of 14.52% to US $ 11.3 million compared to Semester I of last year which was at US $ 13.22 million.

Besides being influenced by weather factors, MYOH Investor Relations Manager Ahmad Zaki said the decline in profit was because it had added tools, thereby increasing fuel and maintenance costs.

Also Read: Samindo Resources (MYOH) is ready to enter the renewable energy business

"The addition of heavy equipment has been carried out since the beginning of the end of the first quarter in the form of 10 dump trucks," said Zaki.

With the addition of the dump truck, continued Zaki, MYOH can be able to boost operational activities when it does not rain. According to Zaki, this had quite a positive impact on MYOH's operational performance, which was reflected in the maintained volume of overburden and the increase in the volume of coal successfully mined.

Zaki explained, the volume of overburden that MYOH successfully moved up to July 2019 reached 30.7 million bank cubic meters (bcm), up 3.1% compared to July 2018. While the volume of coal successfully mined by MYOH reached 6.8 million tons, up to 31.2%.

Also Read: MYOH realized the 30 million BCM overburden removal volume until July 2019

"The low intensity of rainfall during July was the main factor driving the increase," he said.

Meanwhile, until the end of the year, MYOH is aiming for a volume of overburden removal of 58.1 million bcm, and coal getting as much as 10.7 million tons.

With the addition of tools and improved weather conditions, Zaki is optimistic that the target can be achieved until the end of the year. Moreover, continued Zaki, MYOH has also been negotiating with several sub contractors to increase the number of heavy equipment being operated. "We are optimistic that the target will be achieved," he said.

For information, actually MYOH overburden removal capacity reaches 65 million bcm. However, the realization of this capacity depends on coal production targets that contract with MYOH.

At present, MYOH has customers from a subsidiary of PT Indika Energy Tbk (INDY), namely PT Kideco Jaya Agung, which contributes around 98% of all revenue, with the remainder from the Bayan Group.

Zaki said that the Kideco contract will continue until 2023. Meanwhile, Bayan will expire at the end of this year. To that end, Zaki said that his party was taking an approach, both to extend the contract with Bayan, as well as looking for a new contract.

According to Zaki, MYOH has obtained a Mining Service Mining Business License (IUP-JP) since December 2018, so MYOH can be more flexible in finding partners. However, Zaki stressed that MYOH was very selective in choosing partners.

He said, MYOH considered a number of criteria, particularly regarding the sustainability of reserves and access to mining sites. "So we don't just select contracts, we are selective to consider," he said.