PT Renuka Coalindo Tbk' Concessions are located in Jambi - Photo by the Company

JAKARTA (TheInsiderStories) – Singapore’ Wilton Resources Holding Pre Ltd, will own majority shares of PT Renuka Coalindo Tbk (IDX: SQMI), the company said today. The coal miner planned to offer 18.83 billion new shares at a price of Rp250 per share or in total Rp4.71 trillion (US$335.71 million) through a limited public offering.

Based on the information disclosure to Indonesia Stock Exchange on Feb. 11, Wilton became a standby buyer by absorbing 15.06 billion shares at a price or around Rp3.76 trillion. As result, the investment holding became the controlling shareholder of Renuka Coalindo with ownership of 96.95 percent.

This acquisition aims to sustain the expansion of Wilton’ business in Indonesia which focuses on gold mining in the region. Before venturing into the gold mining business, Renuka Coalindo is a company engaged in coal mining services.

The local miner is currently building a gold processing plant located in Sukabumi. This processing plant is able to operate in the upcoming June 2019. For this, the company allocates capital expenditure for this factory or processing facility of $26 million.

The company targets the gold production done at Ciemas Gold Project in West Java, to start operating in June 2019. The mine has reserves of 26 tons of gold content and is targeted to produce 185,000 troy ounces per year.

It said, the funds will be budgeted to build a gold production infrastructure with a capacity of 500 tons per day and to distribute to the domestic market.

Until the end of December 2018, Renuka recorded a profit of $52,157, down 45 percent compared to 2017 amounting to $95,110. The decrease in profit was in line with the company’ revenue which also fell to $199,625 from $246,658 in a previous year.

The income was only obtained from PT Wilton Wahana Indonesia. This is different compared to revenues in 2017 where the company still booked revenue from joint operations with Seluma Prima Coal and PT Marlin Serantau Alam.

As of December 2018, the company’ majority shareholder is Renuka Energy Resource Holdings 80 percent, Credit Suisse AS Singapore Trust A 6.05 percent and public 13.19 percent.

Renuka Coalindo owns and operates thermal coal mine in Jambi through its subsidiary. Thw miner also provides marketing services to other coal miners for exports to India.

by Linda Silaen and Staff Editor, Email: linda.silaen@theinsiderstories.com