PEFINDO: PT J Resources Asia Pasifik Tbk’s (PSAB) maturing bond rated idBBB+

(July 27, 2022)--PEFINDO has affirmed its idBBB+ rating for PSAB’s Shelf-Registered Bond I Phase II Year 2019 of IDR500 billion due on September 25, 2022. The Company plans to repay its maturing bond using combination of internal cash and bank loans. As of March 31, 2022, it had cash and cash equivalent of USD34.6 million.

The corporate rating reflects PSAB’s sizeable mining reserves and resources, expectations of low cash cost from new project, and the high demand for gold. The rating is constrained by its aggressive capital structure, exposure to the fluctuation of gold prices, and risks related to the development of new mines.

PSAB was established in 2002 under the name PT Pelita Sejahtera Abadi and commenced mining operations in 2012 after acquiring assets from Avocet Mining. 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, Lanut, and Doup in North Sulawesi) and Malaysia (Penjom).

The Company owned two producing mines and one mine in construction stage. As of March 31, 2022, its shareholders consisted of Jimmy Budiarto (92.50%), Sanjaya J (0.02%), and the public (7.48%). (ends)