7 Listed Companies Ruling Gold Mines in Indonesia

JAKARTA - During the first semester of 2021, the Ministry of Energy and Mineral Resources (ESDM) recorded that Indonesia's gold production reached 12.94 tons. This amount decreased by 12.15% from the record in the first semester of 2020 which was 14.73 tons.

The gold production of 12.94 tons also means that Indonesia has only met 40.85% of its gold production target this year. For information, Indonesia targeted gold production to reach 31.67 tons in 2021.

Indonesia is recorded to have gold mines scattered throughout its territory. One of the most well-known is of course the Grasberg gold mine in Papua owned by PT Freeport Indonesia which is now controlled by Indonesia.

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In addition, there are other gold mines, although their production is not as large as Freeport. The owners of these gold mines are also listed on the Indonesia Stock Exchange.  

According to TrenAsia.com, there are at least seven issuers that have gold mines in Indonesia.

The seven issuers are PT Aneka Tambang Tbk (ANTM), PT Merdeka Copper Gold Tbk (MDKA), PT Medco Energi Tbk (MEDC), PT United Tractors (UNTR), PT J Resources Asia Pacific Tbk (PSAB), PT Bumi Resources Minerals. Tbk (BRMS), and PT Archi Indonesia Tbk (ARCI).

Here is a list of issuers and their gold mines:

1. PT Aneka Tambang Tbk (ANTM)

PT Aneka Tambang Tbk (ANTM) or Antam is part of the Indonesian State-owned Enterprises holding, Mining Industry Indonesia (MIND ID). Founded in 1968, Antam is recorded to produce nickel, gold, silver, bauxite, and alumina.

For gold mining, Antam has two mines in Pongkor and Cibaliung. Antam's gold exploration is mainly carried out at Pongkor in the first semester of 2021 where Antam is based on subsurface geology, geological modeling, and drilling.

During the first semester of 2021, Antam recorded a total gold production of 719 kilograms (kg) from the two mines. This amount decreased by 14.9% when compared to gold production in the same period last year of 845 kg.

Despite the decline in production, Antam's gold sales managed to grow 69% to 13,341 kg during the first semester of 2021. In the first semester of 2020, Antam was recorded to have sold 7,915 kg of gold.

As of Tuesday, August 24, 2021, Antam has only reported its financial performance until the first quarter of 2021. In that period, ANTM earned a net profit of Rp630.37 billion. This made ANTM managed to get out of the loss experienced in the first quarter of 2020 of Rp281.84 billion.

ANTM's profit was in line with revenue growth in the first quarter of 2021 which reached 77.04% compared to the same period last year (year on year/yoy).

Based on the company's financial reports, ANTM's revenue increased from Rp5.20 trillion in the first quarter of 2020 to Rp9.21 trillion in the first quarter of 2021.

2. PT Merdeka Copper Gold Tbk

The mining company owned by Sandiaga Uno and Garibaldi 'Boy' Thohir, PT Merdeka Copper Gold Tbk (MDKA), owns 3 mines. The three mines are the Tujuh Bukit Gold Mine, Wetar Copper Mine, and the Pani Gold Project.

The Tujuh Bukit Mine is managed by MDKA's subsidiary, PT Bumi Suksesindo. Meanwhile, Wetar Copper is managed by PT Batutua Kharisma Permai and the Pani Gold Project is managed by PT Puncak Emas Tani Sejahtera.

This year, MDKA targets to produce 100,000-120,000 ounces of gold, down from the 2020 target of 175,000 ounces.

As of Tuesday, August 24, 2021, MDKA has also only reported its financial performance until the first quarter of 2021. The company recorded a net loss of US$4.9 million or equivalent to Rp71 billion (assuming an exchange rate of Rp14,492 per US dollar) during the first three months of 2021.

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This record is inversely proportional to the first quarter of 2020 which recorded a net profit attributable to owners of the parent entity of Rp215.9 billion.

The same thing happened to the company's revenue, which fell by 33.1% year-on-year (yoy). In this period, the value fell to Rp673.8 billion, from Rp1.5 trillion in the first quarter of 2020.

In a financial report released on the Indonesia Stock Exchange (IDX), Wednesday, May 19, 2021, the decline in revenue was due to declining sales of gold, silver and cathode copper to third parties.

For exports, sales of these products were recorded at US$40 million, lower than the same period last year which amounted to US$108 million. On the other hand, domestic sales were still higher, from US$1 million to US$5.9 million.

3. PT Medco Energi Tbk (MEDC)

The oil and gas company owned by the conglomerate Arifin Panigoro, PT Medco Energi Internasional Tbk (MEDC), is also listed as having a gold mine on Sumbawa Island, West Nusa Tenggara (NTB). MEDC took over this mine from the US gold company, Newmont, in 2016.

At that time, MEDC made a transaction to acquire a 50% stake in PT Amman Mineral Investama, which owns an 82.2% stake in NNT. The acquisition also made NNT change its name to PT Amman Mineral Nusa Tenggara (AMNT).

Based on the official website, the age of the Batu Hijau mine is estimated to only continue until 2023 with current production levels. Even so, AMNT is also exploring other parts of the special mining business permit (IUPK) area, such as the Elang exploration prospect.

Eagle has resources of 12.95 million pounds of copper, 19.7 million ounces of gold with the potential to produce 300-430 million pounds of copper and 0.35-0.60 million ounces of gold per year.

In the first quarter of 2021, MEDC recorded a net profit of US$5.1 million or around Rp73.7 billion. The net profit was derived from oil and gas operations as well as the support of AMNT's subsidiary which generated positive income.

4. PT United Tractors Tbk (UNTR)

PT United Tractors Tbk (UNTR) is a company under the Astra Group which is engaged in various fields, from construction to mining. UNTR is recorded to own the Martabe Gold Mine in North Sumatra.

UNTR's subsidiary, PT Agincourt Resources, is the entity that manages the mine. Until June 2021, the total sales of gold equivalent from Martabe reached 176,000 ounces in the first half of 2021.

This figure is down 5% compared to the same period in 2020 of 186,000 ounces. However, net income increased by 7% from Rp4 trillion to Rp4.3 trillion due to an increase in the average selling price for gold.

Revenue from gold mining contributed 12% to total revenue. On a consolidated basis, UNTR pocketed a net income of Rp37.3 trillion. This number increased by around 12% year-on-year (yoy) from Rp33.2 trillion in the same period last year.

Along with the increase in net income, the company's net profit in the first semester of 2021 also increased 11% yoy to Rp4.5 trillion from the previous Rp4.1 trillion. This was followed by an increase in UNTR's earnings per share on an annual basis from Rp1,089 to Rp1,211.

5. PT J Resources Asia Pacific (PSAB)

PT J Resources Asia Pacific (PSAB) is a mining company that invests in and manages gold mining in the Australasia region. In Indonesia, PSAB has a gold mine in Bolaang Mangondow, North Sulawesi covering an area of 38,150 hectares.

PSAB is also overseeing the Doup gold mine development project in the area. The Doup mine is scheduled to start commissioning in the fourth quarter of 2021.

The Doup gold mine is projected to have a production scale of 50,000-80,000 ounces of gold per year with a mine life of 10-15 years from commissioning. This gold mine is also estimated to have a total investment value of around US$136 million.

During the first quarter of 2021, PSAB recorded sales of US$88.9 million. This amount is higher than the record for the same period last year of US$61.84 million.

Despite recording an increase in revenue, PSAB actually lost in the first three months of 2021. PSAB recorded a net loss of US$373,380, in contrast to when it recorded a profit of US$1.33 million in the same period last year.

6. PT Bumi Resources Minerals Tbk (BRMS)

The Bakrie Group's mineral mining company, PT Bumi Resources Minerals Tbk (BRMS), has two gold mines. The two gold mines are located in Palu and Gorontalo.

The BRMS gold mine in Palu is managed by PT Citra Palu Minerals (CPM) with a 96.97% share ownership in the company. CPM has a work contract to work on a mining concession covering an area of 85,180 hectares.

Then, the gold mine in Gorontalo is managed by PT Gorontalo Minerals (GM) where BRMS owns 80% ownership while the remaining 20% is owned by ANTM. GM has a work contract to work on the mining concession in Bone Bolango Regency, Gorontalo covering an area of 24,995 hectares.

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In the first quarter of 2021, BRMS' revenue decreased by 3.48% year-on-year (yoy) to US$1.04 billion or equivalent to Rp15.07 trillion (exchange rate of Rp14,492 per US dollar) in the first quarter of this year from US$1.08 billion or around Rp15.65 trillion as of March 31, 2020.

Meanwhile, the cost of revenue also decreased by 11.67% on an annual basis from US$949.2 million to US$838.4 million. Meanwhile, operating expenses did not change much with a value of US$55.6 million in the first quarter of this year.

With this record, the company managed to reap a net profit of US$25.1 million or equivalent to Rp363.75 billion in the first quarter of 2021. This figure is inversely proportional to the same period last year, where BUMI recorded a loss of US$17.2 million or around Rp249.26 billion.

7. PT Archi Indonesia Tbk (ARCI)

The gold mining company under Peter Sondakh's Rajawali Corpora group, PT Archi Indonesia Tbk (ARCI), owns the Toka Tindung gold mine located in North Sulawesi. The mine is managed by two ARCI subsidiaries, PT Meares Soputan Mining (PT MSM) and PT Tambang Tondano Nusajaya (PT TTN).

The mine first operated in 2011 and has produced more than 6.2 tons of gold per year since 2016. This gold mine is also recorded to have reserves of 3.9 million ounces with only 10% of the area that has been explored and mined has been mined.

In 2021, ARCI is expected to achieve gold production of 220-230 kilo ounces. This reflects a 5-10% growth in gold production compared to the previous year.

ARCI found high grades of gold ore from drilling at the Bima gold reserve in the West Corridor. The company believes this will provide additional potential for new gold reserves for Archi in the future.

In semester I-2021, ARCI recorded a consolidated revenue of US$142.4 million or Rp2.06 trillion (at an exchange rate of Rp14,492 per US dollar). This figure increased by 9% from ARCI's revenue in the same period the previous year of US$130.1 million or Rp1.89 trillion.

The higher gold price compared to the first semester of 2020 was the reason behind the increase in ARCI's revenue. It is noted that the increase in the average selling price of gold did rise to US$1,802 per ounce from the previous US$1,656 per ounce.

The net profit also jumped 24% to US$32.6 million or Rp472.44 billion in the first half of 2021. This amount is greater than the net profit for the same period last year of US$26.2 million or Rp379.69 billion.

During the first semester of 2021, ARCI processed 1.75 million ounces of gold ore. This number increased by 3% compared to 1.70 million tons in the same period last year.

Author: Reza Pahlevi
Editor: Sukirno