PEFINDO has affirmed its idBBB+ ratings to PT J Resources Asia Pasifik

(October 11, 2023)--PEFINDO has affirmed its idBBB+ ratings to PT J Resources Asia Pasifik Tbk (PSAB), the Company’s Shelf-Registered Bond I and its MTN I. Outlook for the company rating is “stable”. The corporate rating reflects PSAB’s sizeable mining reserves and resources, moderate financial flexibility, and stable 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.

The rating may be raised if PSAB fully operates the Doup project as projected which improves its financial profile on a sustained basis. The rating may be under pressure if the Company fails to obtain funds needed in a timely manner which may delay the construction of Doup. The delay may result in significantly lower production volume than projected in the near term and negatively impact PSAB’s revenue which will further aggravate its financial profile. A significant drop in the price of gold may also trigger a rating downgrade, as this may adversely affect its financial figures.

PSAB was established in 2002 and 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 June 30, 2023, its shareholders consisted of Jimmy Budiarto (92.50%), Sanjaya J (0.02%), and the public (7.48%). (ends)