JAKARTA (TheInsiderStories) – Gold miner, PT J Resources Asia Pasifik Tbk (IDX: PSAB) announced to released Rupiah bond up to Rp384.09 billion (US$27.24 million) for debt refinancing. These bonds have an interest rate of 9.25 – 10.25 percent with various series and tenures.
Based on the prospectus released on Monday (01/11), Series A with worth of Rp250.1 billion has an interest rate of 9.25 percent with a tenure of 370 days and Series B amounting to Rp133.99 billion have a coupon rate of 10.25 percent and term of three years.
The notes have an A rating from PT Pemeringkat Efek Indonesia. As planned, the public offering period on Jan. 20 – 21 and targeting to be listing on the stock exchange on Jan. 27. The issuer will be use the proceeds to refinances its subsidiary, PT J Resources Archipelago obligations of Rp300 billion.
Last year, the producer has raised Rp650 billion from bond issuances. The notes consist of Series A with a tenor of 370 days and Series B with a tenure three years. The management said, Series A with a principal amount of Rp335 billion have a coupon interest of 9.25 percent per year. Then, Series B worth of Rp315 billion with interest rate 10.25 percent.
In addition, the company also announced its unit, PT J Resources Nusantara (JRN), has successfully paid off Medium Term Notes with valued of Rp500 billion on the due date, which is August 4. On August 4, 2017, the subsidiary assisted by PT BCA Sekuritas issued the notes with a term of three years and an interest of 11.05 percent.
Last year, the miner has issued a bond with total amount Rp500 billion with a fixed interest rate of 10.5 percent per annum and have a tenure of three years. PT Pemeringkat Efek Indonesia assigned an idA rating to the bond. The funds used by the issuer to pay debt its related parties, PT Bukit Makmur Widya.
Last year, the miner has build two gold mines, namely the Pani mine in Gorontalo and the Doup mine in Bolaang Mongondow, both in North Sulawesi Province. According to J Resources‘ director Edi Permadi, part of the sources funds for the projects comes from the bond issuances.
For this year, the miner plans to spend $136 million of funds to complete the Doup project and other expenditure needs. According to the director, Sanjaya Yang, for the Doup project, the company has signed a contract with SGS Bateman and state power producer PT Perusahaan Listrik Negara to supply 20 mega volt ampere (MVA).
The project is located in East Bolaang Mongondow, North Sulawesi and is targeted to be completed in 2021. This project is expected to produce gold around 90,000 troy ounces (oz) per year and has gold reserves of 1.9 million oz and a life timeup to 15 years.
Permadi, added that his party also has a Bakan project in the same regency and aimed to expanding the block. From this project, J Resources targets a production from this block of 500,000 oz. Other projecs are Tapagale and Jalina. He conveyed, “We are targeting gold production of 250-350 thousand ounces from Tapagela.”
Apart from domestic projects, J Resources is also working on the Penjom Project in Malaysia. This project started in the fourth quarter of 2020 by producing gold with tailing stock facilities.
The gold miner an Indonesia-based holding company listed on the Indonesian Stock Exchange that operates, mines, explores, and invests in the gold mining sector through J Resources Nusantara. The company currently owned four operating mines in Indonesia and Penjom Mine in Malaysia.
J Resources activities includes mining and quarrying, processing industry, wholesale and retail trade, construction, transportation and warehousing, and agriculture, forestry and fisheries. The company started its commercial business on May 1, 2002. The largest shareholder of the mining firm is Jimmy Budiarto with ownerships 92.50 percent.
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