PT United Tractors Tbk ( UNTR ) projects a gold equivalent sales volume in 2023 of 175,000 ounces. This projection is lower than last year's realization of UNTR gold sales which reached 286,414 ounces.
United Tractors Corporate Secretary, Sara K. Loebis, explained that UNTR is currently developing a tailings facility . That is why management made production adjustments.
"The development of the tailings facility is underway , so for the time being, production capacity needs to be adjusted first," Sara told Kontan.co.id, Sunday (20/8).
Gold mining is one of several lines of business that are run by UNTR. The business line is run through PT Agincourt Resources (PTAR) which was acquired by UNTR through PT Danusa Tambang Nusantara (DTN) at the end of 2018.
PTAR is a company engaged in mineral exploration, mining and processing. Currently, PTAR operates the Martabe Gold Mine in the province of North Sumatra with a 30 year Contract of Work
The concession area according to this agreement is 1,302 square kilometers. This area covers areas in South Tapanuli, Central Tapanuli, North Tapanuli and Mandailing Natal Regencies.
The location of the Martabe Gold Mine itself is in South Tapanuli Regency with an operating area of 479 hectares. As of June 2022, the mineral resources of the Martabe Gold Mine were 6.5 million ounces of gold and 64 million ounces of silver. The ore reserves are 3.9 million ounces of gold and 36 million ounces of silver, equivalent to an additional 12-13 years of mining operations.
Throughout the first half of 2023, UNTR's gold equivalent sales volume reached 109,477 ounces. This number shrank 23.85% compared to the realization in the first semester of 2022 which reached 143,776 ounces.
“Estimated gold sales for this year's full year are 175,000 ounces. Sales in semester 1 were around 109,000 ounces, so the rest will be in semester 2," he said.
In terms of accounting for profit and loss performance, UNTR pocketed a turnover of IDR 3.19 trillion in the gold mining line of business or 4.64% of UNTR's total consolidated revenue in the first semester of 2023.
This number decreased by 17.92% compared to the realization of UNTR's gold mining turnover for the first semester of 2022 which reached IDR 3.88 trillion.
Even though it has not been very successful in the gold mining business this year, UNTR still has a vision to accelerate this line of business. Currently, UNTR is preparing the Sumbawa Jutaraya (SJR) mine to be able to start operating in 2024.
In a previous interview with Kontan.co.id, management stated that SJR Mine production was estimated at 40,000 ounces per year in the early year, then increased in the following year to 60,000 ounces.
Image source: www.unitedtractors.com
