Samindo Resources (MYOH) Still Interested in Buying Mining Land

JAKARTA-Three years ago, PT Samindo Resources Tbk (MYOH) planned to buy coal mining land. This land purchase is one of the efforts to diversify business in the electricity sector.

Samindo Resources Investor Relations, Ahmad Zaki said, until now there has been no minethat fits the criteria of the company. Especially after coal prices rose, coal mining land also increased. "The ones who want to sell are not as many as before, because now they are already producing again," he said, Tuesday (2/10).

In the previous report, MYOH targets to be able to get a mine with reserves of 20 million tons of coal and a production capacity of 2 million per year.

Zaki said, his company is eyeing a coal mine that produces calorie coal around 4,300 kcal / kg to 4,500 kcal / kg. "We want mines that have already produced, so we don't spend too much," he added.

Therefore, MYOH is not so aggressive in pursuing the purchase of this mining land. "We are not as aggressive as before, but that does not mean we cancel this plan. We currently accept proposals, carry out due diligence, and if indeed the prospects are good and in accordance with the criteria we can do this plan," he said.

In the planned acquisition of the coal mine, MYOH has set aside up to US $ 100 million. While until the end of the year, MYOH targets to be able to reach revenues of US $ 255 million with a net profit of US $ 17 million.

Until the first semester of 2018, the company has managed to record revenues of US $ 111.20 million with net income of US $ 13.20 million. "We have revised the net profit to US $ 22 million because in the first semester we have reached US $ 13.20 million and are optimistic we can achieve this target," Zaki said.

Throughout the first semester of 2018, MYOH managed to record an increase in land transfer services and the return of coal by 38.30% and coal shipping services by 11.85%. "In addition, the strengthening of the dollar is also one of the effects of increased net income," he said.

Entering the fourth quarter of 2018, MYOH is also eyeing a new contract. Zaki is optimistic that a new contract will be obtained by the company until the end of the year. Unfortunately, he hasn't mentioned the details of the contract.