Gold Mining Company Owned By Conglomerate Peter Sondakh Earns Revenue Of Rp3.3 Trillion In The Third Quarter Of 2021

JAKARTA - The gold mining company, PT Archi Indonesia Tbk (ARCI) recorded a decline in financial performance during the first nine months of this year. The revenue and profit of the company owned by conglomerate Peter Sondakh fell in the third quarter of 2021, although it is still optimistic to face the next quarter.

In Archi Indonesia's financial report, quoted Monday, November 1, the company reported a 14 percent lower consolidated revenue to US$236.5 million (around Rp3.3 trillion), compared to US$275.3 million in the same period last year. This was due to lower gold sales volume to 127.8-kilo ounces.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) were 26 percent lower to 123.8 million US dollars, while net income was also 31 percent lower to 57.3 million US dollars compared to the same period last year.

"This decrease was mainly due to an increase in total mining costs as a result of a temporary increase in the stripping ratio due to the opening of the Araren Pit stage 5," explained ARCI President Director Kenneth Ronald Kennedy Crichton in a written statement.

"Despite starting with a slow performance this year, the company expects a very good performance in the fourth quarter supported by Pit Araren stage 5 which is currently entering the production stage," added Crichton.

Meanwhile, in general, the results of the nine months of this year's performance were influenced by developments in mining and waste removal activities at the Araren Pit which have a high gold content.

“However, with the Araren Pit stage 5 entering production, we have seen an increase in gold grade from gold ore during the third quarter, and we are in a very good position to face a fourth quarter where most of the gold ore will be processed for the rest of the year will come from this high-grade Araren Pit,” he added.

Then, on the exploration side, the continued drilling activity at the Bima-Arjuna gold reserve has produced high-grade pieces but will require further drilling in the coming year.

Furthermore, the ARCI exploration team has also carried out the first phase of Greenfield exploration in high prospect areas in the West Corridor, which has the potential to add to ARCI's gold reserves in the years to come.

"Towards the end of 2021, we have completed our development work at the Araren Pit, where stage 5 has entered production. With the expanded processing plant capacity and the increased capacity of the larger mining fleet, we are confident to be able to record better performance in this area next year," he concluded.