JAKARTA. PT United Tractors Tbk (UNTR) will lower its gold production by up to 50% this year as the capacity of its tailing storage facility is reduced. Following this, JP Morgan has adjusted UNTR’s revenue down by 15%.

Sara K. Loebis, Corporate Secretary of United Tractors, said that her company projects lower god production in 2023 compared to last year’s production level following the limitation on its tailing storage facility. “This year, we are currently in the process of increasing the capacity,” she said, as quoted by Bisnis today (6/3).

JP Morgan’s research mentioned that UNTR’s business unit engaged in the gold mining in Martabe, South Tapanuli, North Sumatra, managed to record total sales of 286,000 oz of gold until December 2022. It was 13% lower than 330,000 oz of gold sold in 2021, due to the decreased parts of gold mined by the company. Meanwhile, the revenue of this gold mining business line was also seen decreasing by 8% to IDR 7.7 trillion in December 2022.

In January 2023, the gold sales recorded by Agincourt Resources shifted down to 19,000 oz from 25,000 oz seen in January last year. From the beginning of this year to date, the gold sales reached 18,999 GEOs, also declining from 24,922 GEOs recorded in the same period last year.

With these occurrences, JP Morgan has adjusted UNTR’s revenue in 2023 down by 15%  due to lower coal prices and lower gold production, with the reference size of 125,000 oz. However, it expects the performance to be balanced out by higher average selling price. (AM/ZH)