Rainfall Decreases, Operating Performance of Samindo Resources (MYOH) Boosts

Bisnis.com, JAKARTA - PT Samindo Resources Tbk. printing an increase in the volume of overburden removal or overburden removal in the third quarter / 2019 along with the decrease in rainfall.

Samindo Resources Independent Director Ahmad Saleh said that in the second quarter of 2019, the company's cover rock volume totaled only 12.5 million bank cubic meters (bcm). The realization increased in the third quarter / 2019 with the volume of overburden removal reaching 15.5 million bcm.

"Compared to the second quarter, the volume of overburden in the second quarter rose to 23.3%. This is because the second quarter rainfall is quite high so it entered in the third quarter, the rainfall is low and we are boosting performance, "he said in a third quarter / 2019 performance presentation, Wednesday (10/30/2019).

During the nine months of adoption this year, the total overburden removal of the issuer with the MYOH stock code has reached 40.1 million bcm or 69.02% of this year's target of 58.1 bcm.

In terms of production, the company is confident of being able to exceed this year's target of 10.7 million tons after the realization reached 8.7 million tons until the third quarter of 2019. The MYOH coal production last year reached 9.9 million tons.

Saleh said the low rainfall was the main factor driving the company's operating performance to increase.

"We hope that in the next 2 months the rainfall will not be as high as this time last year. With the predicted rainfall that is not too high until the end of the year, God willing the target is reached. If the rainfall is high until the end of December, it will certainly influence the performance," he said.

MYOH Investor Relations Manager Ahmad Zaki Natsir added that the weather was indeed the biggest obstacle in mining operations indeed the weather. During the first half of this year, rainfall at the mining site was very high.

He explained in a few days during the second quarter / 2019, the maintenance time during the average rain was 7 hours per day. That is, operational activities can run normally for only 17 hours.

"When it rains, in this pit it is like a puddle, a pool, so we cannot operate. It rains, we do cleaning so it can operate it takes 7 hours. At present it is more conducive, yesterday it was dry so that it was operating optimally," he said.

As for July-August 2019, the average maintenance time when it rains is only 1.1 hours per day.

From the financial side, until September 2019, the mining service company posted revenues of US $ 188.9 million, up 7.82% compared to revenues in the same period last year of US $ 175.2 million.

Zaki added that the budgeted capital expenditure this year was US $ 17.8 million, which had been realized around 60% with an allocation of around US $ 14.5 million for overburden removal and coal production.