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J Resources plans to raise Rp 3 trillion from bond offering
Mining company PT J Resources Asia Pasifik expects to raise Rp 3 trillion in fresh funds from the issuance of bonds within two years.
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Work is carried out at a goldmine in North Kalimantan. (Antara/Agus W.)
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ublicly listed gold mining company PT J Resources Asia Pasifik expects to raise Rp 3 trillion (US$209 million) in fresh funds from the issuance of bonds within two years.
The company, with its subsidiaries operating eight mining sites for gold and other mineral resources, aims to raise Rp 500 billion from the public in the first stage of the issuance of the shelf registration bonds this year, the company’s director Willian Surnata told a press briefing in Jakarta on Monday.
He said the company, which secured a single A rating from state-owned rating agency Peringkat Efek Indonesia (Pefindo) for the bonds, has assigned securities firms PT Indo Premier Sekuritas and PT Bank Negara Indonesia (BNI) Sekuritas as underwriters for the bond issuance.
Eban S. Banowo of Indo Premier Sekuritas said the underwriters were targeting insurance companies, banks, high-network retail firms, pension funds and investment management companies as investors.
Willian said the three-year bond would offer a fixed interest rate with quarterly payments. He did not specify the rate or the date of the first-phase issuance.
He said his company would allocate the proceeds from this year’s bond issuance for working capital and the repayment of part of its Rp 1.8 trillion debt, which was due in 2020-2021.
He explained that the working capital would cover fees for geology, geotagging and metallurgy consultants.
J resources said in a statement that it, through its subsidiaries, controls four operational gold mines, each equipped with a processing plant, two mines under development and two others under exploration. All the mines are estimated to hold 4,814 kilo ounces in gold ore and 9,151 kilo ounces in mineral resources.
Last year, J resources saw its sales rise 1.5 percent to $222.6 million from $219.4 million in 2017 and its net profit increase by $3.2 million to $19.1 million. (nal)
photo caption: PT J Resources Asia Pasifik Tbk director Willian Surnata talk to journalists after a press conference in The Ritz Carlton Hotel on Monday (17/6). In the press conference J Resources announced its plan to issue shelf registration bonds to raise a total of Rp 3 trillion (US$209.04 million) in fresh funds in the next two years.
