BRMS report higher revenue
Saturday, September 2 2017 - 03:33 AM WIB
IDX-listed mining company PT Bumi Resources Minerals Tbk (BRMS) said that unaudited revenue in the first semester of this year reached US$15.6 million, up 22.14 percent from $12.77 million in the corresponding period of last year.
After selling its sake late last year in gold and copper giant formerly known as PT Newmont Nusa Tenggara (now PT Amman Mineral Nusa Tenggara), BRMS?s single source of revenue is its Japan-based trading subsidiary PT Bumi Resources Japan Co Ltd, which provides coal marketing services for Mitsubishi Corp Japan Ltd.
BRMS?s three mining subsidiaries, namely PT Citra Palu Minerals, PT Gorontalo Minerals, and PT Dairi Prima Mineral have yet to start production, which the company said last year were targeted to begin production in 2019.
BRMS said in the interim financial report obtained Friday that total comprehensive income in the January-June period this year reached $145.59 million, a swing from a loss of $11.75 million in the corresponding period of last year.
Meanwhile, Andrew Neale, BRMS President Director & CEO said in a statement Friday the company has successfully deleveraged its balance sheet following the successful shares issuance and debt to equity swap agreements in the past two months.
?Our third party debt and payables to vendors were reduced by 47 percent and 81 percent respectively from December 2016 to June 2017. Consequently, our debt to equity ratio improves from 44 percent to 19 percent during the same period,? he said.
On the operation side, Suseno Kramadibrata, the company?s Director and COO explained that the sale of the 51 percent share of the Dairi Prima Mineral?s zinc and lead project (DPM) to the China Nonferrous Metal Industry?s Foreign Engineering & Construction Co. Ltd. (NFC China) or its affiliates remains on track.
?The arrival of NFC China or its affiliates as a shareholder and EPC contractor of the DPM project is expected to accelerate commercial production and significantly de-risks the project from the Company?s perspective,? he said.
As previously disclosed in the company?s press release dated 21 June 2017, the proceeds from DPM?s share divestment is to be used to reduce the outstanding loan facility related to DPM and fund the development of Dairi?s zinc and lead project, and the BRMS gold and copper projects in Palu and Gorontalo, both in Sulawesi.
BRMS subsidiary Gain and Win Pte, Ltd (GW) signed in June an updated conditional sales purchase agreement (previously signed on April 29) with NFC for the sale of GW?s 51 percent DPM.
Editing by Reiner Simanjuntak