Samindo Budgeting Capex by US $ 13.8 Million

PT Samindo Resources Tbk (MYOH) budgeted capital expenditure (capital expenditure / capex) worth US $ 13.8 million in 2018 or grow about 343% of this year's allocation. The funds will be used to finance the purchase of heavy equipment.

Samindo Resources is a holding company that has core business of providing coal mining services, such as overburden removal and coal getting, coal hauling, geological mapping and drilling.

Investor Relations Samindo Ahmad Zaki Natsir said most of next year's capital expenditure comes from internal cash. Based on the financial performance report until the third quarter of 2017, Samindo recorded net cash worth US $ 26.6 million. While the ratio of debt to current assets only reached 21%. "Our internal cash is sufficient to meet the capital expenditure next year," he said through a press release received by Investor Daily in Jakarta on Tuesday (12/12).

He said the increase in capital expenditure is part of the company's strategy to increase overburden removal and coal production volume in line with the company's client demand next year. "The increase in coal selling price in the global market prompted our clients to raise coal production volume, so we need heavy equipment to compensate for the demand," he said.

Some of the heavy equipment that will be purchased by the company are dump trucks, excavators, cranes, and pumps. The Company has made a purchase order and the targeted heavy equipment has been operated by the company in the first quarter of 2018.

The company previously set a target of overburden removal and coal production growth of 13% and 10%, respectively, compared to the realization this year. This increase came from the company's client request, namely PT Kideco Jaya Agung and Gunung Bayan Pratama Coal.