The Bakrie Family-Owned Mining Company Reaches 1.625 Percent Profit Growth To IDR 986 Billion In 2021

Illustration. (Photo: Unsplash)

JAKARTA - The mining company belonging to the Bakrie conglomerate family, PT Bumi Resources Minerals Tbk (BRMS) posted a 26.50 percent increase in revenue from 8.3 million US dollars in 2020 to 10.5 million US dollars in 2021.

In its financial report, quoted Monday, April 18, the company noted that the volume of BRMS gold production also increased from 73 kg in 2020 to 139 kg in 2021. BRMS' net profit also experienced a significant increase of 1,625 percent, from 4 million US dollars in 2020 to 69 million US dollars in 2021.

The increase in net profit was due to other income in 2021 amounting to USD 118 million. However, around 90 million US dollars of other income came from the settlement of claims by third parties against BRMS subsidiaries in cash or in the form of rights, for an 80 percent stake in PT Suma Heksa Sinergi, operator of the Kerta gold mine project in Lebak, Banten.

The settlement of these claims was recorded as other income in the company's income statement because these claims had previously been impaired in 2018. Meanwhile, the remaining 28 million US dollars from other income represents debt write-offs and inventory valuation which were recorded in the first semester of 2021.

BRMS President Director & CEO Agus Projosasmito said other income in the form of bill settlement, inventory valuation, and debt write-off were not recorded regularly by the company.

"In the future, we hope to be able to rely more on the increase in revenue from our gold production to increase the company's net profit," Agus said in his official statement, quoted Monday, April 18.

He continued, BRMS's ownership of the Kerta gold mine project is also still waiting for the completion of related documents and approval from the government. He believes that the Kerta gold mine project will have a positive impact on the financial performance of BRMS in the future.

Meanwhile, Director & Chief Investor Relations Officer of BRMS Herwin Hidayat, said that his party will continue to improve the production and financial performance of BRMS for the benefit of its shareholders. According to him, the construction of the second BRMS gold plant in Palu with a capacity of 4,000 tons of ore per day is still going according to the plan to be completed this year.

"The third factory in Palu with a capacity of 4.000 tons of ore per day and the fourth factory in Gorontalo with a capacity of 2.000 tons of ore per day, are expected to start operating in the first quarter of 2024. The new gold plants will increase the company's gold production in the near future, " he said.