Cakra Mineral swings to profit on stronger sales

By Tri Subhki R

IDX-listed mineral mining company PT Cakra Mineral Tbk (CKRA) swung to profit in 2013 posting Rp257.71 million of net profit compared to Rp3.95 billion of net loss in 2012, according to the company?s 2013 full year financial statement.

The positive performance was supported by stronger sales performance last year amounted to Rp46.22 billion or almost 100 percent gain compared with Rp24.52 billion in 2012.

However, Cakra Mineral has to suspend the iron ore mining activities at its concession in Nagari Sungai Kunyit, West Sumatra Province, owned by subsidiary PT Persada Indo Tambang (PIT) due to the implementation of mineral ore export ban by the government in January of this year. In 2013, PIT produced 112,699.32 metric tons of iron ores or lower than 121,900.25 metric tons in 2012.

?PIT mining activities will temporarily be suspended until the company can sell the iron ores to both export and domestic markets,? the company?s statement said recently. The company only sold 18,400 WMT of iron ore in early of the year.

The company is expected to heavily rely on its mineral trading company Dunestones Developments S.A (DD), which has been acquired from Rami Sadek M Kuwalty on December 12, 2013 worth of US$50 million. ?DD?s sales target per year is expected to reach $102 million or contribute up to 75 percent of company?s total revenue,? the statement said.

DD has signed mineral sales agreement with PT Katingan Surya Harapan (iron ore), PT United Mineral Kalimantan (nickel ore), PT Murui Jaya Perdana (zircon), PT Takaras Inti Lestari and PT Zhongrui Mining Industri (HK) Co, Limited (iron sand).

Editing by Reiner Simanjuntak