Coal reserves of PT MNC Energy Investments Tbk (IATA) increased to 332 million metric tons (MT) or an increase of 78.6 million MT from 253.4 million MT. The increase was based on a report by the Indonesian Mineral Reserves Committee (KCMI) from drilling two coal mines owned by IATA's subsidiaries.
In more detail, PT Arthaco Prima Energy (APE) found reserves of 178.6 million MT with GAR 2,500-3,250 kg per kcal in the APE Phase 1-4 drilling program on an area of 2,670 hectares (ha).
With these new findings, APE has only reached 17.8% of the total area that can be mined on an area of 15,000 ha in Musi Banyuasin, South Sumatra. Phase 5 APE drilling is scheduled to be completed in the second quarter of 2023.
In addition, 9.1 million MT of coal reserves with GAR 3,400-3,600 kg per kcal were also found in the IUP of PT Bhumi Sriwijaya Perdana Coal - South (BSPC-S) from an area of 2,158 ha.
Of the 72,478 ha of total mining area owned by MNC Energy, 59,035 ha of which are still in the exploration process. Thus, MNC Energy believes that proven reserves will continue to increase, reaching at least 600 million MT for all IUPs.
If calculated using the average Reference Coal Price (HBA) from 2021 to October 2022 of US$ 190.32 per ton, APE mining activities have anet present value (NPV) of US$ 881.4 million. At the same time, APE has aninternal rate of return (IRR) of 63.2%, a break even point (BEP) of 10.8 million MT, anda payback periodof 2.17 years.
Meanwhile, BPSC-S is expected to generate an NPV of US$ 54.3 million, with an IRR of 57.3%, a BEP of 1.6 million MT, anda payback periodof 1.97 years.
Just a reminder, this issuer coded IATA shares has begun to increase capital with pre-emptive rights (HMETD) ora rights issueworth IDR 2.67 trillion. This corporate action will be carried out by issuing a maximum of 14.84 billion series B shares, with an exercise price of IDR 180 per share. The ratio is 10:13, namely 10 shares owned by investors are entitled to 13 pre-emptive rights.
In addition, the company will provide additional rights by issuing a maximum of 2.96 billion series I warrants.
Image source: Perseroan
