JAKARTA – PT Adhi Kartiko Pratama Tbk (NICE) has budgeted jumbo capital expenditure (capex) for the next three years, forcing it to withhold dividends for the 2023 financial year for the sake of stable working capital.

Based on the presentation by Hendra Prawira, Director of NICE, the company already has plans to invest through a capital expenditure budget of US$ 7.7 million for the next three years.

"This fund will cover the construction of the main hauling road (MHR), building facilities and other activities," continued Prawira when met at the 2024 NICE Annual Public Expose today (20/6).

Preparation of the mining area is projected to increase the company's nickel production and sales volume. This year, NICE targets nickel production and sales to reach 1.8 million metric tons, down from the company's RKAB which targets production of 2.5 million metric tons of nickel.

"Consider the weather and infrastructure preparations until next year," said Chang Pyo Hong, Director of NICE, on the same occasion. The company also admitted that it would not revise the RKAB, at least until the MHR construction project is completed, namely until 2025.

Please note, NICE has a nickel mining area of ​​1,975 hectares in Kendari, Southeast Sulawesi, with an IUP until December 2030. "Now, we have a special team on site to explore areas near the AKP concession," continued Hong.

Funds for this capex investment will come from internal cash. "Our cash availability is quite high, which aims to finance capital expenditure and working capital," said Prawira.

Until the end of March 2024, NICE's cash flow appeared to be smooth, with cash and cash equivalents reaching IDR 94.35 billion. Meanwhile, the total capex investment planned by NICE will be equivalent to IDR 126.2 billion (exchange rate IDR 16,388 per USD). (ZH/LM)