The Sinarmas Mining Company Owned By Conglomerate Eka Tjipta Widjaja Earns IDR 26 Trillion In Revenue And IDR 3.5 Trillion In Profit In 2021

JAKARTA - The mining company from the Sinarmas Group, Golden Energy and Resources Ltd (GEAR), which is also the parent company of PT Golden Energy Mines Tbk (GEMS), posted a profit surge in 2021.

Based on the financial report of the company owned by conglomerate Eka Tjipta Widjaja, quoted on Tuesday, February 22, throughout 2021 GEAR posted a profit of US$251.3 million (around Rp3.5 trillion), up 629 percent year on year (yoy). This number is the highest since recorded in 2016.

Meanwhile, GEAR's revenue jumped 61 percent to 1.87 billion US dollars (around Rp. 26 trillion). The company's management said the surge in revenue was contributed by the coal segment, which soared 49 percent yoy to 1.59 billion US dollars due to the 72 percent increase in the average coal selling price (ASP) to 53.46 US dollars per tonne.

Revenue from the metallurgical coal segment rose by 195 percent to US$286.6 million with an ASP increase of 65 percent to US$132.78 per tonne. The company's Ebitda also set a record in 2021 reaching 503.3 million US dollars with a margin increase of up to 26.9 percent.

Cash inflows into GEAR also strengthened by USD 377.3 million throughout 2021, compared to USD 108.9 million in 2020.

"For this year, the company has signed an ownership acquisition agreement in BHP Mitsui Coal Pty Ltd. (BMC) which is planned to be completed in mid-2022," the management wrote in a GEAR official statement, quoted Tuesday, February 22.

In addition, in order to reduce the company's dependence on the coal mining business, GEAR has reduced its ownership in the shares of PT Golden Energy Mines Tbk. (GEMS) by 4.5 percent to 62.5 percent.

The Company has also completed the acquisition of a 20.33 percent stake in Ascend Global Investment Fund SPC in GEAR's subsidiary, Golden Investments (Australia) Pte Ltd (GIAPL). With this transaction, GIAPL is now a wholly owned subsidiary of the Company which owns approximately 75.33 per cent in Stanmore, the Group's metallurgical coal arm in Australia.