Archi Indonesia, Gold Mining Company Owned By Conglomerate Peter Sondakh Explains Why 2021 Revenue And Profits Slumped

Photo: Doc. Archi Indonesia

JAKARTA - The gold mining company owned by conglomerate Peter Sondakh, PT Archi Indonesia Tbk (ARCI) recorded weak revenues and net profit in 2021 due to lower gold sales.

In the company's financial statements, the company's revenue in 2021 is USD 345.9 million, 12 percent lower than USD 393.3 million in the previous year.

"This decline was mainly due to the lower gold sales volume from 213.8 kilo ounces to 188.1 kilo ounces," said Archi Indonesia's management, quoted Monday, April 25.

EBITDA was recorded at USD 163.7 million, 32 percent lower compared to USD 240.4 million in the previous year.

"This decrease was primarily due to an increase in mining costs resulting from an increase in the amount of material mined, an increase in the stripping ratio due to early-stage ore mining in the Araren pit stage 5 and the opening of the Alaskar pit, as well as an increase in processing costs in line with higher ore processed during the period. 2021," added the management.

However, mining costs per unit were 11 percent lower to USD 2.90 per tonne. Overall, profit for the year decreased by 39 percent from USD 123.3 million to USD 75.1 million.

In addition, property, plant and equipment, mining properties, as well as exploration and evaluation assets were higher mainly from the increase in capital expenditures for mining development activities in the Araren pit stage 5 and the opening of the Alaskar pit, increased processing capacity and exploration activities.

"Meanwhile, the increase in short-term bank loans was due to the addition of working capital credit disbursement in March and October 2021. The higher trade payables were mainly due to an increase in mining development activities and exploration activities," explained the company.

Based on the situation related to natural disasters in early January this year, ARCI estimates that gold production in 2022 will be affected by around 25 percent compared to production in 2021, and will also have an impact on financial performance.