J Resources sees higher gold output

IDX-listed gold mining firm PT J Resources Asia Pasifik Tbk expected output next year to slightly increase by 2.2 percent to 225,000 troy ounces from 220,000 oz estimated for this year, reports said Wednesday.

Director Edi Permadi was quoted as saying by Bisnis Indonesia that the output will continue to be driven by its two new mines, Bakan, in North Sulawesi, and Seruyung, in North Kalimantan, which started production end of 2013.

As of November of this year, output has reached 205,000 oz, and is expected to reach 220,000 oz by the end of the year, up from the initial target of 200,000 oz.

Kontan daily said that production from the Bakan mine is estimated at around 70,000 oz, and from Seruyung at more than 80,000 oz.

Two other mines Lanut Utara in North Sulawesi, and Penjom in Malaysia are expected to each contribute around 30,000 oz. Edi said the company put a brake on production at the two mines due to the current decline in the price of gold. The production facility at the two mines each have capacity of 60,000 oz.

Capital expenditure for next year is slashed down to US$20 million from the $60 million realized for this year as the company put a hold on expansion, Bisnis Indonesia said quoting Edi. Capex will be mainly used for maintenance and purchase of new machine.(*)