PT Sinar Terang Mandiri Tbk (MINE) continues to focus on increasing the number of heavy equipment to improve operational activities. The purchase of heavy equipment will come from funds collected by the company from the initial public offering (IPO) of shares.
The issuer, which was officially listed on the Indonesia Stock Exchange (IDX) on March 10, 2025, raised public funds from the IPO amounting to IDR 132.33 billion after releasing 612.66 million shares or equivalent to 15% of the capital at an offering price of IDR 216 per share.
The majority or equivalent to 48% of the total IPO funds will be spent by MINE to purchase heavy equipment and 11% to purchase fixed assets in the form of land and buildings owned by the Main Commissioner and controller of MINE, Sinjo Jefry Sumendap.
The remainder is used to support PT Weda Bay Nickel (WBN) project activities, including purchasing fuel, heavy equipment spare parts, heavy equipment rental, and other supporting fleets.
MINE President Director Ivo Wangarry said that adding equipment is the company's focus going forward to optimize business opportunities in the nickel mining sector.
"The increase in the number of heavy equipment will further increase the company's capabilities in nickel addition services, so that it will have a direct impact on the company's income," explained Ivo in his official statement, Wednesday (16/4/2025).
Ivo believes that the domestic nickel industry downstreaming program and increasing global demand for nickel will be a positive business opportunity for the company.
Because, Indonesia as one of the largest nickel producers with reserves reaching 20% of the world's total reserves, has a great opportunity to become a major player in the global electronic vehicle (EV) or electric vehicle industry supply chain.
"With the increasing investment in the electric vehicle ecosystem, we are optimistic that this industry will continue to grow rapidly. This is certainly a positive catalyst for MINE, which has more than 20 years of competence and experience in providing high-quality services to the nickel mining and processing sector," said Ivo.
Net profit
Throughout 2024, the issuer of other mining and excavation support services posted a net profit that soared by 41% to IDR 306.49 billion, compared to IDR 217.28 billion in 2023.
Profit growth is supported by net income that increased by 20.42% to IDR 2.11 trillion in 2024, from IDR 1.75 trillion in 2023. The majority of revenue comes from the mining services business of IDR 2.10 trillion. This amount reaches 99.35% of the Company's total revenue.
MINE's total assets also jumped 56% to IDR 1.61 trillion from IDR 1.03 trillion. The increase in assets was supported by an increase in net fixed assets of 57.7%, in accordance with requests from employers who are MINE's partners to increase nickel ore mining production.
Third party accounts receivable also increased significantly by 103% to IDR 248.45 billion from IDR 122.27 billion and Gross Bills to employers increased by 48.9% to IDR 481.39 billion from IDR 323.40 billion compared to the 2023 position.
"Supported by a strong capital structure and support from shareholders, business partners, and all stakeholders, we are optimistic that we can make a greater contribution in supporting the nickel industry and national economic growth," concluded Ivo.
