JAKARTA (TheInsiderStories) – Indonesian miner, PT United Tractors Tbk (IDX: UNTR), through its subsidiary PT Danusa Tambang Nusantara, officially became a shareholder of Agincourt Resources, the owner of the Martabe gold mines.
Previously, China’s Pengxin International Mining Co. Ltd. and Shandong Gold Group, a state owned entity Chinese gold miner affiliated with the provincial government of Shandong, are considering to buy the mines from the unit of the Australian private equity manager EMR Capital.
The spokeswoman, Sara K. Loebis, said in the official statement, that all prerequisite conditions in the share sale agreement have been fulfilled. Thus, United Tractors through Danusa has effectively owned a 95% share in Agincourt since December 4, 2018.
UNTR spent US$50 million to acquiring the Martabe mines located in North Sumatra. By acquiring the gold mines, the unit of PT Astra International Tbk (IDX: ASII) is optimistic that it can produce up to 350,000 ounces of gold per year.
Agincourt Resources is a mining company engaged in exploration, mining and processing of minerals into gold and silver bars. The mines has resources of 7.5 million ounces of gold and 67 million ounces of silver.
As much as 95 percent of Agincourt Resources shares are owned by EMR Capital. Meanwhile, the other 5 percent of shares are held by PT Artha Nugraha Agung, which is 70 percent owned by the Regency of South Tapanuli, and 30 percent by the North Sumatra Province.
Previously, EMR Capital joint with publicly listed coal miner PT Adaro Energy Tbk (IDX: ADRO) acquired 80 percent Rio Tinto‘s coal asset Kestrel in Australia for $2.25 billion. The Kestrel mine located in the Bowen Basin, the world premier metallurgical coal region, produced 4.25 Metric ton (Mt) of hard cooking coal and had marketable reserves of 146 Mt and resources of 241 Mt in 2017.
Martabe mine was acquired by a consortium led by EMR Capital, a specialist mining private equity fund bought 95 percent of the mine from Hong Kong’s G Resource in 2016 for $775 million.
At this mine, EMR Capital has 61.4 percent of shares. The consortium also includes Farallon Capital, a global financial investor (20.6 percent), North Sumatra businessman Martua Sitorus (11 per cent) and Robert Hartono & Michael Bambang Hartono (7 percent).
In 2017, Agincourt recorded $484,43 million in revenue. It is a 13 percents increased from 2016 revenue worth $ 426,43 million. Profit after tax was $151.3 million, an increase of 25.4 percent over the previous record of $120.7 million achieved in 2016.
The net profit margin of 31.2 percent in 2017 was above 2016’s performance at 28.3 percent, reflecting higher sales volume and lower costs. In 2018, Agincourt is focusing to increase the production capacity and continue to explore new reserves around the current pits.
Martabe gold mine is located in the province of North Sumatra with a total area of 1.639-kilometer square. The contract of the work for the mine was signed in April 1997. It started to produce on July 24, 2012.
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