PEFINDO affirms ratings of J Resources' bonds, notes
Tuesday, February 14 2023 - 06:54 AM WIB
(February 13, 2023)--PEFINDO has affirmed its idBBB+ ratings to PT J Resources Asia Pasifik Tbk (PSAB), Shelf-Registered Bond I and MTN I. The outlook for the corporate rating was also affirmed at “CreditWatch with Negative Implication”. PSAB has received the bondholders’ approval to extend the maturity of Shelf Registered Bond I Phase III Year 2020 to February 14, 2026 from initially February 14, 2023, Shelf Registered Bond I Phase V Year 2020 Series B to July 30, 2026 from initially July 30, 2023, and Shelf Registered Bond I Phase VI Year 2020 Series B to November 27, 2026 from November 27, 2023. However, the Company is still in the discussion process with the bondholders to reschedule other maturing debt securities, namely Shelf Registered Bond I phase I year 2019 due on June 5, 2023 and Shelf Registered Bond I phase IV year 2020 due on May 6, 2023.
The corporate rating reflects PSAB’s sizeable mining reserves and resources, expectations of low cash cost from new project, and the high demand for gold. The rating is constrained by its aggressive capital structure, exposure to the fluctuation of gold prices, and risks related to the development of new mines.
PSAB’s inability to address its heightened refinancing and liquidity risk in a timely manner may trigger rating downgrades. The outlook may be revised to stable should the Company is able to successfully resolve the issues.
PSAB was established in 2002 under the name PT Pelita Sejahtera Abadi and commenced mining operations in 2012 after acquiring assets from Avocet Mining. Its operations cover the exploration, mining, and processing of gold. It has a geographically diverse portfolio of assets across Indonesia (Seruyung in North Kalimantan; and Bakan, Lanut, and Doup in North Sulawesi) and Malaysia (Penjom). The Company owned two producing mines and one mine in construction stage. As of September 30, 2022, its shareholders consisted of Jimmy Budiarto (92.50%), Sanjaya J (0.02%), and the public (7.48%). (ends)