Ancora plans to diversify into gold mining
Thursday, August 31 2017 - 01:51 AM WIB
IDX-listed PT Ancora Indonesia Resources Tbk, which is among others engaged in production of explosives for the mining industry, is looking to diversify into gold and mineral mining business.
This was revealed on Wednesday by Ancora President Director Teddy Kusumah Somantri. He said that the company is currently scouting for acquisition targets, and make thorough assessment.
?We must look into the prospect of the gold and mineral mines, their permit status, and also reserves through independent certification agency,? he said, but declined to provide further details.
In the first semester of this year, Ancora reported a 20 percent decline in revenue to US$43.39 million compared to $54.17 million in the corresponding period of last year.
Teddy said that the revenue decline was due to lower sales of its subsidiaries PT Multi Nitrotama Kimia (MNK), which produces explosive materials, and PT Bormindo Nusantara, which provides oil and gas services.
In the January-June period of this year, MNK booked a sales revenue of $32.98 million, or down 23 percent year-on-year, while Bormindo booked revenue of $10.4 million, or 9 percent decline year-on-year.
Teddy said that Ancora also plans to issue new shares and debts to help improve its capital and financial structure.
Editing by Reiner Simanjuntak