Samindo (MYOH) posted an increase in cover rock volume in the third quarter of 2019

JAKARTA. PT Samindo Resources Tbk (MYOH) recorded a volume of overburden of 40.1 million bank cubic meters (bcm) until the end of September 2019. The figure was up 3.3% year on year (yoy) compared to the same period the previous year. Meanwhile, the volume in the third quarter of 2019 rose to 23.3% compared to the second quarter of 2019.

Samindo in a press release received by explained, during the period from April to June the total cover rock of the Company amounted to 12.5 million bcm and during the period from July to September the number of cover rocks of the Company reached 15.5 million bcm.

One of the factors driving the increase in cover rock volume is the low rainfall. Samindo noted, since from the beginning of the year until approaching the first semester the rainfall at the mining site was very high.

Even on several days in April and June maintenance hour when it rains had reached 7 hours per day. This means that in one day only 17 hours of operational activities can run normally. The rest activities must be stopped because of conditions that do not allow for operational activities.

"Meanwhile, entering the third quarter the rainfall fell dramatically, even relatively rain did not occur. On average from July to August maintenance hour when it rains only reached 1.1 hours per day," explained Samindo, quoted Wednesday (30/10) ). This automatically has a significant impact on operational activities.

In addition to low rainfall, entering the third quarter all new equipment imported by the Company is fully operational. This year the Company has budgeted US $ 14.5 million to purchase 10 units of dump trucks.

Since the first quarter, the equipment has gradually arrived and by the end of the first semester all garbage trucks have been on site and are ready to be fully operated.

"The high rainfall is the biggest challenge in coal mining activities, we hope that until the end of the year the rainfall will not be too high so that operational activities can be stable," said Zaki, Head of Investor Relations of PT Samindo Resources Tbk.

Zaki added that the company continues to improve the performance of all heavy equipment so that it can increase production volumes until the end of the year. On the other hand, Samindo's financial performance until September 2019 experienced a positive impact through an increase in the volume of the overburden.

As of September 2019, the Company posted revenues of US $ 188.9 million, an increase of 7.8% yoy compared to September 2018.