PT Adaro Energy Tbk (IDX: ADRO), through its unit, PT Alam Tri Abadi, purchased 179 million shares of PT Merdeka Copper Gold Tbk (IDX: MDKA) from Garibaldi Thohir - Photo: Privacy

JAKARTA (TheInsiderStories) – Publicly listed firm, PT Adaro Energy Tbk (IDX: ADRO), through its unit, PT Alam Tri Abadi, purchased 179 million shares of PT Merdeka Copper Gold Tbk (IDX: MDKA) from Garibaldi Thohir. The coal miner bought the share at Rp2,420 a unit or in total of Rp433.18 billion (US$29.87 million).

The management said on Monday (05/03), the reasoned the company bought the shares caused gold and copper sector is quite resilient in this difficult time. Earlier, Australia’ Macquarie Capital Ltd., has bought 1.01 billion shares of Merdeka Copper worth of Rp2.43 trillion from other shareholder, PT Saratoga Investama Sedaya Tbk (IDX: SRTG), through a private placement scheme.

Recently, Adaro has secured loan facilities amounted to $400 million with five years tenure and will will mature on April 23, 2026. The funds use for an early repayment of a syndicated loans from 14 international banks which was obtained on August 25, 2014. The loan facilities will mature on August 25, 2021.

The miner also generated free cash flow of $104 million in the first quarter (1Q) of 2021 after booked a net profit of $110 million and operating income $692 million. In the same quarter, the sales volume of the mining firm dropped by 13 percent to 12.59 million tones of coal and the production also decreased by 11 percent to 12.87 million tones of coal. Thohir said the weather affected by La Nina in the first quarter of 2021 has affected the logistics activities.

While, Merdeka Copper has issued two series of local bond amounted to Rp1.5 trillion. The Series A have tenure 367 days and Series B for three years. Around 23 percent of the proceeds of the bond will be used to repay the principal debt under the Single Currency Revolving Facility of $25 million.

Then, around 11 percent will be used by PT Bumi Suksesindo to fund the exploration activities of the Tujuh Bukit Copper Project, which is expected to be completed in 2021. As reported, its subsidiary, PT Batura Pelita Investama and Wealthy Source Holding Ltd., a unit of China’ Eternal Tsingshan Group Ltd., has signed a deal to build the project.

The joint venture would handle the Acid Iron Metal project in the Indonesian Morowali Industrial Park area to process pyrite ore from Wetar copper project. The mining firm’ owned 80 percent at the new entity and Tsingshan through its affiliate will hold 20 percent.

Its targeting the production of copper around 14,000 to 17,000 tones in this year from 2020 was 5,472 tones, followed the development of the Partolang pit. The company plans to integrated the Wetar copper mine and the Acid Iron Metal project at Lerokis mine to the new Partolang mine.

Copper production is expected to increase in the first quarter of 2021 along with the development of Partolang and it is expected to start achieving consistent production levels in the 2021 quarter,” explained the management.

Merdeka Copper also targeting the gold production up to 120,000 troy ounces or lower than 2020′ production of 157,175 troy ounces. With the capacity, in 2020, the mining producer sold 162,847 troy ounces of gold, dropped by 26.9 percent compared to the same period of 2019.

US$1: Rp14,500

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