Develop Business, Merdeka Copper Will Not Divide Dividends

Additional capital without Pre-emptive Rights provides funding flexibility for the company in developing business activities and supports expansion potential


Mining issuer PT Merdeka Copper Gold Tbk will not distribute dividends on net profit earned in 2021. The entire profit will be used for business development.

"No dividend distribution has been decided at the AGM because there are many future project developments that the company has to do," said President Director of Merdeka Copper Albert Saputra in an online public expose Friday (10/6/2022).

In the first quarter of 2022, Merdeka Copper has made two major acquisitions, namely taking over PT Hamparan Logistik Nusantara. Hamparan Logistik has nickel assets with nickel ore reserves one of the largest in the world as well as nickel smelter assets that are already operating. The value of this acquisition transaction is Rp 5.7 trillion.

In addition, Merdeka Copper also acquired PT Andalan Bersama Investama which has Pani's contract of work with a transaction value of Rp 1.1 trillion.

In the 2021 financial year, Merdeka Copper managed to record a profit of US$36.14 million, around Rp. 526.45 billion. This profit decreased slightly when compared to 2020 profit which was recorded at 36.19 million US dollars.

In addition to not distributing dividends, in yesterday's GMS it was also decided to increase capital without Pre-emptive Rights (HMETD). The maximum number of shares issued is 2.29 million shares or a maximum equivalent to 10 percent of Merdeka Copper's issued and fully paid capital. 

This non-HMETD agreement aims to provide funding flexibility for the company in developing business activities and supporting potential expansion.

"This non-HMETD agreement aims to provide funding flexibility for the company in developing business activities and supporting potential expansion. Until now, we are still continuing to develop our main assets, including looking at development opportunities in potential sectors,” said Albert again.

The meeting also approved a plan to buy back shares or buyback a maximum of 0.5 percent of shares with an allocation of Rp 600 billion. 

Profits go up fast

Meanwhile, PT Indonesia Vehicle Terminal Tbk posted a 97.10 percent increase in profit in the first quarter of 2022. Profit increased from Rp 17.89 billion to Rp 35.26 billion. In a written statement, the management of Indonesia Vehicle Terminal stated that the increase in profit was supported by an increase in revenue of 25.12 percent.

On the other hand, in the same period in 2021, income actually fell by 3.23 percent. Operating income increased from Rp 119.9 billion in the first quarter of 2021 to Rp 150 billion this year.

The increase was largely contributed by income from the increase in terminal services which contributed 92.51 percent of revenue. Along with the economic recovery, loading and unloading activities at the port are getting busier. 

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