Darma Henwa to boost capex for next year
Wednesday, December 20 2017 - 02:14 AM WIB
IDX-listed coal mining and services company PT Darma Henwa Tbk said it will boost capital expenditure (capex) next year to US$93.8 million from the estimated $14.18 million for this year.
The company said in a statement on Tuesday that the capex will be used to finance a number of projects including coal mine project in Bengalon, East Kalimantan Province; coal mine project in Asam Asam, South Kalmantan Province; coal mine project in Satui, also in South Kalimantan Province; port services project for PT Dire Pratama; zinc mineral project in North Sumatra owned by PT Dairi Prima Mineral which will start in the second semester of 2018; copper and gold project in Gorontalo owned by PT Gorontalo Minerals which will start in the second quarter of 2018; and gold projects in Central and South Sulawesi owned by PT Citra Palu Minerals which will start in the second quarter of 2018.
The company said that the Bengalon coal mine project aims to increase overburden removal volume by 67 percent to 89.3 million bcm next year, and coal production to increase 65 percent to 11.2 million tons.
Overburden removal volume at the Satui mine will nearly quadruple to 49.4 million bcm next year, while coal production to nearly triple to 4.1 million tons, Darma Henwa said.
Meanwhile, overburden removal volume at Asam-Asam mine will jump by 93 percent to 44.7 million bcm, and coal production to increase 43 percent to 7 million tons.
Darma Henwa said that revenue in 2018 is projected to jump by 71 percent to US$406.6 million year-on-year. Gross profit is projected to rise by 18 percent to $38.4 million, while EBITDA to soar by 178 percent to $90.6 million.
Editing by Reiner Simanjuntak