PEFINDO has affirmed its idBBB+ ratings to PT J Resources Asia Pasifik Tbk

(October 13, 2025)--PEFINDO has affirmed its idBBB+ ratings to PT J Resources Asia Pasifik Tbk (PSAB), and the Company’s Shelf-Registered Bond I. Outlook for the Company’s rating is stable. The corporate rating reflects an established production track record at the Bakan site, a moderate financial profile, and stable demand for gold. The rating is constrained by its exposure to the fluctuation of gold price and moderate operating scale. The Company plans to early repay all of its outstanding Shelf Registered Bond I with the total amount of USD41 million using internal funds, with a reported cash balance of USD39 million as of June 2025. This early repayment will be subject to bondholders’ approval scheduled on October 14, 2025.

The rating may be raised if PSAB is able to maintain stable operations and production levels from its remaining gold mining assets, which improves its financial profile on a sustained basis. The rating may be under pressure if there is a material decline in production from the Company’s existing gold mining assets, or if further divestments of its remaining mining assets, Bakan and Penjom, take place, as these would weaken its revenue base and operating scale. Such developments would likely lead to a deterioration in the Company’s financial profile through lower cash flow generation, reduced operating efficiency, and weaker credit protection measures. A significant drop in the price of gold may also trigger a rating downgrade, as this may adversely affect its financial figures.

Our rating assessment has not incorporated PSAB’s plan to divest its Doup gold project to third party with divestment value of around USD540 million, as the transaction has not yet to reach finality, with the long stop date for the settlement— as stipulated in the Conditional Sale and Purchase Agreement (CSPA)—set at no later than December 23, 2025, or such other date as mutually agreed by both parties. We will reassess the Company’s rating following the realization of this corporate action plan.

PSAB was established in 2002, and its operations cover the exploration, mining, and processing of gold. It has a geographically diverse portfolio of assets across Indonesia (Seruyung in North Kalimantan and Bakan in North Sulawesi) and Malaysia (Penjom). As of June 30, 2025, its shareholders consisted of Jimmy Budiarto (92.50%) and the public (7.50%). (ends)