ZINC Boosts High Grade Galena Production

By : Nata Kesuma | Saturday, August 13 2022 - 07:09 IWST

PT KapuasPrima Coal Tbk (“ZINC”)
PT KapuasPrima Coal Tbk (“ZINC”)

INDUSTRY.co.id - Jakarta, August 12th, 2022 – PT KapuasPrima Coal Tbk (“ZINC”), a listed company in Indonesia that produces base metal, boosted production with a target of high levels of galena in the 2nd Semester of this year in order to revive the company's performance which was experiencing decline in net profit in the 1st semester.

ZINC is engaged in mining iron ore (Fe) and Galena which are then processed into lead concentrate (Pb) and zinc concentrate (Zn).

According to the Director of ZINC, Evelyne Kioe, the beginning of 2022 was quite a challenging time, due to the shrinking global economy due to the ongoing Russia-Ukraine war. Although commodity prices for lead (Pb) and zinc (Zn) briefly increased in the 1st quarter, corrections to commodity prices occurred again in the 2nd quarter.

Meanwhile, along with the increase in commodity prices in the 1st quarter, the majority of prices for oil, transportation, and other raw materials also increased many times due to high inflation and scarcity of supplies.

"This certainly has a negative impact on the company's performance on both sides," said Evelyne Kioe.

In general, Pb and Zn commodities remained relatively stable, as seen from the consolidated Pb  and  Zn  prices  at  USD  2160/ton  and  USD 3600/ton respectively. This is due to the high global demand for these two commodities. The second factor was also caused by the number of smelters in Europe which were temporarily closed due to the energy crisis.

"As a company, we will, of course, flexibly in using development strategies, both in terms of capacity, level, and efficiency in order to keep the company's performance positive," said Evelyne Kioe.

In the 1st semester of 2022, ZINC posted a net profit of IDR28.27 billion, down 68% from IDR89.52 billion in the same period in 2021. The decline in net profit occurred because the company's sales fell 18% YoY to IDR411.35 billion from IDR499.94 billion in the previous period.

Meanwhile, the company managed to reduce the cost of goods sold down by 14% YoY. In the first half of 2022, the company recorded a cost of goods sold of IDR266.04 billion, down from IDR309.22 in the same period the previous year.

 

News Comment

Today's Industry

PT Surya Esa Perkasa Tbk. (ESSA: IJ)

Selasa, 26 September 2023 - 07:45 WIB

ESSA Secures Gas Contract Extension for LPG Refinery

PT Surya Esa Perkasa Tbk. (ESSA: IJ), a publicly listed company engaged in the Energy and Chemical sectors through its LPG (Liquefied Petroleum Gas) refinery and Ammonia plant today (22/9) announced…

(kiri-kanan) Cahyo (operations manager PT Eco Paper Indonesia), Kuswara ( Direktur ALDO), Herwanto Sutanto (Presdir ALDO), dan Herlambang Putra Sujadi (Direktur PT Eco Paper Indonesia)

Selasa, 26 September 2023 - 06:45 WIB

ALDO Strengthens PT Eco Paper’s Business of Recycled Brown Paper Production

PT Alkindo Naratama Tbk (ALDO), a listed company engaged in the integrated paper and chemical business, plans to inject additional working capital of around IDR 40 billion into its subsidiary…

"CLEO", PT Sariguna Primatirta Tbk (Tanobel Group)

Sabtu, 23 September 2023 - 11:33 WIB

Growing Above Industrial Average, CLEO Strives for Innovation

Producer of bottled drinking water with the brand "CLEO", PT Sariguna Primatirta Tbk (Tanobel Group) targets its sales in 2023 to grow above the average of the bottled drinking water (AMDK)…

PT Inocycle Technology Group Tbk ("INOV")

Kamis, 14 September 2023 - 15:15 WIB

INOV Poised to Absorb PET Recycling Market Potential

The prospects of PT Inocycle Technology Group Tbk ("INOV") a public company in the field of recycling plastic (PET) bottle waste into Recycled Polyester Staple Fiber (Re-PSF), looks bright for…

Participants of the 43rd ASEAN Summit enjoy the gala dinner at Hutan Kota GBK in Jakarta, Wednesday (09/06). (Photo by: BPMI of Presidential Secretariat)

Senin, 11 September 2023 - 09:07 WIB

Indonesian Cuisine, Cultural Performances Enliven Gala Dinner of 43rd ASEAN Summit

President Joko “Jokowi” Widodo and First Lady Iriana Jokowi hosted a gala dinner for leaders of ASEAN member states, partners, and international organizations at Hutan Kota restaurant in…