Ancora Indonesia Resources Tbk (OKAS) is reviewing the business development in gold and mineral mining sector. This expansion is expected to increase the company’s
revenue in the future. The new business is also assessed in line with the company’s core business in oil and gas, mining and energy.
Teddy Kusumah Somantri, President Director of OKAS, said that the company is still in the early stages of exploration in gold and mineral mining business. “At the time when the mineral mining industry is declining, there are usually good assets being sold,” said Teddy.
The company wants to spend as little as possible but can get high quality asset. The acquisition of mine which has been operating and had large reserves of minerals would require substantial funds. The location of gold or mineral mines is expected in Borneo or Sumatra.
The company also considers other corporate actions to finance its business development, such as bond issuance or rights issue. “We will analyze and calculate their needs depending on the results of explorations and negotiations,” said Teddy.
The company will also restructure its debts to creditors and suppliers worth USD 62 million. “The company’s debt value is USD 12 million while Multi Nitrotama Kimia (MNK), its subsidiary has USD 50 million,” said Teddy. The company will ask for extension of debt repayment period and interest decline.
In the first half of 2017, OKAS posted USD 43.39 million, down 20 percent over the same period last year due to lower sales of MNK and rig rental declines in other subsidiaries, Bormindo Nusantara. (*)