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Ancora gold mine production misses target

20 September 2018 06:40 AM  Company: PT. Ancora Indonesia Resources Tbk[OKAS]
Rp. 161  -4 (-2.42%)

JAKARTA - PT Ancora Indonesia Resources Tbk's projection to start mining gold missed the target scheduled for late June. This is because Ancora still has to complete a number of permits and arrange funding strategies.

President Director of Ancora Indonesia Resources, Teddy Kusumah Somantri, said that his team is currently waiting for the issuance of a Production Operation Mining Permit (IUP) from the Ministry of Energy and Mineral Resources.

However, even if the IUP has already been issued, Ancora cannot immediately start production because it still has to complete the loan-use permit of the forest area in the Ancora mine area.

As a result, the target for production was delayed again, said Teddy, as quoted by Kontan.co.id, Wednesday (19/9).

Issuer with OKAS code on the Indonesia Stock Exchange previously acquired 100% of Southern Arc Mineral Inc, which is the owner of Indotan Lombok Pte.

Currently, there are three prospects for the site to be worked on by Ancora. First is the Raja site, following two other sites, namely Macanggah and Selodong with a total area of 10,088 hectares.

Site Raja will be the first to be worked on because of exploratory technical considerations is more prepared compared the other two sites. Raja has a gold reserve of 322,000 troi ounces, with a mine life of around eight years.

To work on the Raja site, Ancora needs fund appoximately US$ 20 million. While the overall cost for the Raja site and the Macanggah and Selodong Ancora exploration requires at least US$ 30 million.

Shifting production targets also occurs because Ancora is still developing a funding strategy. According to Somantri, they still calculate whether the funding will be through financing, bank loans or Rights Issues. (AM/LM)

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PT. Ancora Indonesia Resources Tbk [OKAS]   Rp. 161   -4 (-2.42%)