PEFINDO affirms “idBBB” ratings of PT Kapuas Prima Coal Tbk’s maturing bonds

(November 1, 2019)--PEFINDO has affirmed its “idBBB” ratings to PT Kapuas Prima Coal Tbk’s (ZINC) maturing Bond I 2018 Seri A of IDR4.6 billion that will mature on December 31, 2019 and Bond I 2018 Seri B of IDR26 billion that will mature on January 21, 2020. The Company plans to pay its maturing bonds from its cash and cash equivalent of IDR63.6 billion at the end of September 2019. Debt security rated idBBB denotes adequate protection parameters relative to other Indonesian debt securities. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity on the part of the obligor to its longterm financial commitments on the debt security.

Established in 2005, ZINC is engaged in exploration and production activities for industrial metals: zinc (Zn), lead (Pb), silver (Ag), and iron ore (Fe). In 2008-2014, it only produced and sold Fe. Since 2015, it had focused on Zn and Pb, mainly due to the price of Fe, which is deemed too low. It currently operates five underground pits in Lamandau, Central Kalimantan, with an estimated raw ore production capacity of 450,000 tons per annum in 2019. Publicly listed in 2017, its shareholders were PT Sarana Inti Selaras (21.36%), Sim Anthony (15.13%), Kioe Nata (13.05%), Budimulio Utomo (10.54%), Haroen Soedjatmiko (9.57%), William (9.56%), and the public 20.79% as of June 30, 2019. (ends)