PEFINDO: PT Merdeka Copper Gold Tbk’s maturing bond rated “idA”

(January 26, 2022)--PEFINDO has affirmed its “idA” rating for PT Merdeka Copper Gold Tbk’s (MDKA) Shelf Registered Bond II Phase I Serie A of IDR559.6 billion due on April 2, 2022. MDKA plans to repay its maturing bond using external financing and internal cash. As of December 2021, the Company had cash of USD186 million.

Debt security rated idA indicates that the issuer’s capacity to meet its long-term financial commitments on the debt security, relative to other Indonesian issuers, is strong. However, the issuer’s capacity is somewhat more susceptible to adverse effects of changes in circumstances and economic conditions than higher-rated issuers.

MDKA was established in 2012 and is engaged in mining activities. It has two projects located in Bukit Tumpang Pitu, Banyuwangi for gold mining and Wetar Island, Maluku, for copper mining. As of September 30, 2021, its shareholders consisted of PT Saratoga Investama Sedaya Tbk (18.29%), PT Mitra Daya Mustika (12.87%), Garibaldi Thohir (8.86%), PT Suwarna Arta Mandiri (6.05%), Pemda Kabupaten Banyuwangi (4.25%), and others, including the public (49.67%). (ends)