JAKARTA - PT J Resources Asia Pasifik Tbk (PSAB) is confident that its performance, both operational and financial, will arrive positively this year, even improving from last year.

Edi Permadi, Financial Director of PSAB, said that turbulent geopolitical condition, particularly in Europe and Middle East, has driven gold demand upwards. “It results in higher demand for gold, thus boosting gold price, although US dollar strengthens as well,” Permadi said.

Furthermore, Permadi projects PSAB’s revenue to be able to reach approximately USD 230-240 million in 2024, which is 40% higher than USD 170 million recorded last year.

In addition, PSAB also estimates that gold production will reach 100 thousand ounces by the end of 2024, higher than 93,7 thousand ounces seen in 2023.

Until November 2024, PSAB recorded gold production of 93 thousand ounces, with sales value of USD 217.2 million.

“So, this December, we expect total year production to reach 100 thousand ounces,” Permadi said in the official statement today (17/12).

Sanjaya J., Director of PSAB, mentioned that until the end of September 2024, the company posted profit of USD 4.45 million, significantly improving from a loss of USD 13.40 million seen in the same period last year.

On the other hand, PSAB’s sales increased 86.78% year-on-year (yoy) to USD 173.86 million as of September 2024, from USD 93.08 million seen in September 2023. Sanjaya also believes that PSAB could sustain this growth next year, assuming that the gold price remains steady at this level.

As of now, PSAB still heavily relies on gold production in Bakan and Penjom Blocks (Malaysia). Next, PSAB’s gold production will receive extra contribution from Doup gold mine. Regarding this new gold mining project, the company will ensure an appropriate refinery technology in Doup gold mine in order to generate optimal recovery level.

According to Sanjaya, Doup project, located in East Bolaang Mongondow, North Sulawesi, requires investment worth a total of USD 400 million. Until now, PSAB has invested approximately USD 70 million in this project.

Following its operation, soon, Sanjaya said, Doup mine is projected to generate 140-155 thousand ounces per annum. Then, adding this to total gold production from Bakan Block of 80-90 thousand ounces, PSAB will record total gold production of over 200 thousand ounces.

“With projected gold mine lifetime of 14 years and the estimation of current gold price level, Doup will potentially be able to bring in approximately USD 3 billion of revenue in total,” added Sanjaya. (DK/MT/ZH)