J Resources to revise down gold production target

By Thomas Sembiring

IDX-listed gold mining firm PT J Resources Asia Pasifik Tbk is considering to revise down its initial gold production target of 221,000 oz for this year following the rise in the price of the commodity.

?When we set the initial production target, we used a price assumption of US$1,100 per oz. But it turns out that the price is higher, so we don?t need to produce as much,? said William Surnata, Finance Director of J Resources on Wednesday, but did not disclose the new production target.

He said that with gold prices now average at around $1,251 per oz, the company will focus on increasing exploration activities to secure future reserves, while maintaining revenue level at least at last year?s level. He this is forms part of the strategy extend its mine life.

William said last year revenue stood at $250 million, with average price of $1,165 per oz, and sales volume of 244,850 oz. As per September of this year, the company has obtained $180 million revenue, and is confident to achieve the full-year target.

In regards to capital expenditure, William said that the company has spent about half of the planned $70 million spending as it accelerated exploration activities over the past three months following the issuance of the required permits.

During an extraordinary shareholders meeting on Wednesday, J Resources obtained approval for a planned rights issue by selling 10 percent shares to the public.

Editing by Reiner Simanjuntak