PT Amman Mineral Internasional Tbk. (AMMN) predicts capital expenditure absorption of USD 980 million or around IDR 14.7 trillion (assuming an exchange rate of IDR 15,000 per USD) in 2023.
Until the first H of 2023, AMMN absorbed capex of USD 436 million (IDR 6.54 trillion), with details of capital expenditure related to the need to purchase mining equipment, build and upgrade supporting facilities for Phase 7 ore mining activities and Phase 8 overburden removal ( sustaining capex) of USD 132 million.
Furthermore, smelter capital expenditure amounted to USD 92 million, processing plant expansion amounted to USD 166 million, and gas and steam power plants (PLTGU) and LNG facilities amounted to USD 46 million.
"AMMN is expected to spend USD 980 million in capital expenditure in the second semester of 2023," he explained
Meanwhile, for the construction of the smelter, AMMN estimates a completion target of more than 70 percent in December 2023. After the completion of the smelter mechanics in May 2024 (if there is no force majeure).
"We will focus on smelter commissioning and start production of the first copper cathodes around 4-5 months later," explained AMMN management.
AMMN targets copper and gold production growth throughout 2023 which is expected to boost financial performance in semester II/2023.
AMMN management explained that throughout 2023, it is targeting concentrate production of 610,000 dry metric tons. Meanwhile, the copper production target is 337 million pounds.
"Throughout 2023, AMMN targets gold production to be 529 kilo ounces," wrote management, quoted Friday (29/9/2023).
Throughout H I/2023, Management claims that AMMN's mining operations are running efficiently and are on track to match the total number of metric tons mined in fiscal year 2022, despite several external challenges.
From October 2022 to April 2023, the Batu Hijau mine experienced unprecedentedly high rainfall, causing delays in mining fresh ore from Phase 7. As a result, mining was fully diverted to Phase 8 overburden stripping, which will allow faster access to Phase 8 fresh ore than originally scheduled.
After the rainy season passed and the dry season began, AMMN increased pit water pumping so it could access high-grade Phase 7 ore sooner than originally planned in July 2023.
Copper processing continued at full capacity throughout semester I/2023, despite delays in Phase 7 ore mining and product shipments. AMMN succeeded in producing 134 million pounds of copper and 172 kilo ounces of gold.
Meanwhile, for sales, AMMN recorded copper sales reaching 76 million pounds with an average selling price of USD 4.48 per pound and gold sales of 119 kilo ounces with an average selling price of USD 2,004 per ounce.
On the other hand, AMMN budgeted capital expenditure with details of sustainable capital expenditure of USD 332 million, smelter and PMR of USD 365 million, processing plant expansion of USD 469 million and gas and steam power plants and LNG facilities of USD 226 million.
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