JAKARTA (TheInsiderStories) – Indonesian gold miner, PT Merdeka Copper Gold Tbk (IDX: MDKA) has plans to release local bonds Rp300 billion (US$20.54 million) for working capital needs. It said, the bonds consist of two series with tenure 367 days and five years.
Based on the prospectus released today (08/26), Series A with worth of Rp49 billion have a coupon rate 8.25 percent and will matures on Sept. 16, 2021. Then, Series B with values of Rp151 billion with an interest rate of 10.25 percent has maturity until Sept. 9, 2023.
At the end of July 2020, Merdeka Copper distributed bond of Rp1.4 trillion to repay part of the principal amount of debt under the $100 million facility agreement. The gold miner has appointed PT Indo Premier Sekuritas, PT CIMB Niaga Sekuritas, PT Sucor Sekuritas to be the underwriter for the bond issuance.
“We will use the proceeds for working capital of the company or other business entities,” wrote the management on Wednesday (08/26).
Merdeka Copper said, the company will conduct a public offering on Sept. 4 and 7 with a target of listing in the Indonesia Stock Exchange (IDX) on Sept. 10. The issuer has obtained idA or Single A rating from PT Pemeringkat Efek Indonesia for the bond issuances.
In the first semester (1H) of 2020, the company’ net profit dropped 9.43 percent to $38.26 million compared to last year of $45.25 million. The revenues slightly up by 3.67 percent to $198.81 million in the 1H of 2020 from previously $191.77 million.
Merdeka Copper has mining business license of 4,998 hectares and 6,623 hectares. According to a study conducted by the company, the existing mines could be exploited up to 25 years with the estimates potential ore reserves of 1.9 billion tons.
Based on the company data, the shareholders of the company are PT Saratoga Investama Sedaya Tbk (IDX: SRTG) 20,76 percent, PT Mitra Daya Mustika 14.16 percent, Garibaldi Thohir 8.76 percent, PT Suwarna Arta Mandiri 7.04 percent, Regency of Banyuwangi 5.50 percent, and public 43.78 percent.
in 2017, together with its holding, the company has take over assets of Australian copper miner Finders Resources Ltd’s (ASX: FND) in Indonesia, for an estimated value of $177 million. Finders runs Wetar copper and Ojolali gold-silver projects in Indonesia.
The Ojolali project is located in Lampung Province, near the southern tip of Sumatra, as part of the highly-productive Sumatran Gold Belt, which includes Martarbe, Lebong Donok, Lebong Tandai, Pongkor, and Way Linggo deposits.
Wetar Copper Project is located far away, on the north-central coast of Wetar Island, of the Maluku Barat Daya Regency, Maluku Province. Finders holds a 95 percent stake in Wetar Copper in Maluku Province, engaged in a high-quality copper mine concession with JORC-compliant resources of 200,000 tons of copper (as of 2013).
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