Gold Mining Company Owned By Conglomerate Peter Sondakh Earns Revenue Of IDR 4.94 Trillion And Profit Of IDR 1.07 Trillion In 2021

Illustration. (Photo: Doc. Archi Indonesia)

JAKARTA - The gold mining company owned by conglomerate Peter Sondakh, PT Archi Indonesia Tbk (ARCI) posted a profit throughout 2021, although it was down from the previous year. This is in line with the company's production which has decreased.

In ARCI's financial report, quoted Monday, April 4, the company posted 12 percent lower revenue from contracts with consolidated customers to USD 345.9 million (around IDR 4.94 trillion), compared to USD 393.3 million in the previous year.

"This was mainly due to lower gold sales volume from 213.8 kilo ounces to 188.1 kilo ounces," said Archi Indonesia President Director Kenneth Crichton in a written statement.

In addition, earnings before interest, tax, depreciation, and amortization (EBITDA) fell 32 percent to 163.7 million. Meanwhile, profit for the year was also 39 percent lower to USD 75.1 million (around IDR 1.07 trillion) compared to the previous year.

The decline in profitability was mainly due to the higher stripping ratio from early stage ore mining in the Araren pit stage 5 and the opening of the new Alaskar pit.

"Exploration activities are focused on increasing the potential for additional discoveries around the currently operating mine pits in the East Corridor area as well as drilling for gold minerals in the West Corridor area," said Kenneth.

Meanwhile, ARCI's net debt for this period was lower from US$389.7 million at the end of 2020 to USD 296.9 million at the end of 2021, reflecting the performance of its debt-to-equity ratio (DER) which was significantly better than IDR 4.1x to 1.3x.

Throughout 2021, ARCI also realized a capital expenditure of USD  118.6 million, which was mainly used for the development of the Araren pit stage 5, increasing the capacity of the processing plant, and exploration activities. In terms of production, the ore processed throughout 2021 will reach 3.64 million tons.