MYOH Realizes Production of 40% of Target

Jakarta - As of May 2019, PT Samindo Resources Tbk (MYOH) has realized coal production or coal output of 4.8 million tons or 40% of this year's target. "As of May 2019, production has increased 30% from last year as of 2018 3.7 million tons," Ahmad Zaki Natsir, Investor Relations Manager of Samindo Resources, said in Jakarta yesterday.

This year, the company targets 10.7 million tons of coal production. In contrast, the total stripping volume of coal overburden removal (OB) was recorded to decline by 5% on an annual basis in January 2019 — May 2019. Because, the realization per end of May 2019 was 20.2 million bank cubic meters (bcm) or down from 21, 4 million bcm the same period last year.

For the record, the company targets OB volume as much as 58.1 million bcm in 2019. Meanwhile, coal production is targeted at 10.7 million tons this year. He said, a number of factors determine the company's performance such as accommodative weather and coal prices that affect the performance of coal producers. This year, MYOH is eyeing revenues of US $ 280 million. The target is up 16.13% from the realization of US $ 241.11 million in 2018. In terms of operations, Ahmad said the mining conditions are still fairly heavy up to semester I / 2019. This is due to the high rainfall in East Kalimantan.

As an illustration, he continued, maintenance hours lasted eight hours per day. This means that for eight hours the company cannot operate. After the rain, sludge cleaning must still be carried out to transport coal. Therefore, some equipment is allocated for mud removal.

Nevertheless, MYOH has been anticipating since the beginning of the year. The strategy is taken by increasing capacity. Until the end of May 2019, the company has realized the purchase of 10 units of trucks. The capital expenditure allocated for the expansion is US $ 10 million. The Company periodically strives to improve the capabilities and professionalism of all companies.

In terms of non-operational costs, MYOH also made some efficiency. General and administrative expenses recorded a decrease of 8.9% compared to 2017. In the past year, in terms of profitability, all components recorded a positive increase. The main driver of the increase in MYOH profitability is supported by the efficiency that has been encouraged since early 2018. Management encourages all activities, especially operations, to be carried out effectively. This means that the costs arising from inefficiencies can be reduced.