Mining Company Owned By Conglomerate Aburizal Bakrie's Profit Jumped 880 Percent In Q1 2021

Illustration. (Photo: Unsplash)

JAKARTA - Mining company of Bakrie Group, PT Bumi Resources Minerals Tbk managed to record a significant improvement in performance in the first quarter of 2021. This is reflected in the net profit of BRMS-coded issuers which soared to hundreds of percent.

Quoted from BRMS financial report published on the Indonesia Stock Exchange (IDX) page, Wednesday, May 12, the company owned by conglomerate Aburizal Bakrie recorded a net profit attributable to owners of the parent entity of USD1.61 million in the first quarter of 2021. The gain jumped 880.41 percent compared to the $ 165,057 profit earned by the company in the first quarter of 2020.

The profit growth was supported by a 37.13 percent increase in post-revenue to $ 1.35 million compared to $ 991,860 in the first quarter of 2020. In addition, BRMS also recorded other revenues of $ 2.02 million.

Meanwhile, BRMS revealed that other income consists of debt elimination and inventory valuation. If detailed, the elimination of the debt is an income recorded due to efficiency and cost savings by the company that occurs due to the repayment of bills to contractors that are smaller than the previously estimated costs.

Meanwhile, inventory valuation is income derived from additional ore stockpile left by illegal miners (Unlicensed Mining / PETI) before. In terms of production, the production volume of Dore Bullion and Gold soared to 50 kg from the previous 5 kg and 24 kg from the previous 2 kg.

CEO and President Director of Bumi Resources Minerals Suseno Kramadibrata said, despite the improvement in financial and production performance recorded in the first quarter of 2021, the company was able to record better achievements. He explained that the first quarter of 2021 revenue was not included from mining consulting services, so 100 percent of the revenue came from the production and sale of gold.

In addition, global pandemic conditions have caused delays in the delivery of some parts from China for periodic maintenance of existing factory facilities in Poboya, Palu. Therefore, the BRMS plant was forced to operate only with a capacity of 70 percent in the first half of 2021.

However, some of the necessary parts have now arrived and have been installed in the relevant factory. The Company hopes to operate the current plant at full capacity in May and June 2021.

On the other hand, BRMS will increase gold production significantly in the second quarter of 2022 in line with the completion of the company's second plant in Poboya, Palu with the capacity to process up to 4,000 tons of ore per day.

"This increase in gold production will have a positive impact on BRMS's revenue and profit in the next year", Suseno said.