Freeport Papua Gold Production Drops

Production and sales of PT Freeport Indonesia copper plummeted in the second quarter of 2013. This, due to the collapse of an underground tunnel incident at the Grasberg mine in Papua in mid-May.

Reported by page FCX, Wednesday, July 24, 2013, Freeport posted sales of 158 million pounds of copper and 151 thousand ounces of gold, lower than the same period last year, in which Freeport managed to record sales of 183 million pounds of copper and 247 thousand gold.

However, in the first half of 2013, sales of Freeport is still higher. The US-based mining company managed to record sales of 356 million pounds of copper at an average price of U.S. $ 3.08 per pound. While the first half of 2012, Freeport sold only 317 million pounds of copper at an average price of U.S. $ 3.56 per pound.

Meanwhile, on the production side, Freeport in the second quarter of 2013 only produced 139 million pounds of copper and gold by 131 thousand thousand ounces. Much lower than the first quarter of 2012 gold production, which reached 173 million pounds of copper and 230 thousand ounces of gold.
In total, the company has produced copper as much as 358 million pounds of copper and 343 ounces of gold in the first half of 2013.

Meanwhile, the decline in production and sales of Freeport Indonesia due to the underground tunnel collapse incident that killed 28 people and left 10 people injured. Freeport immediately suspend mining activities in honor of the victims and investigate the cause of the collapse of the tunnel.

On June 24, 2013, Freeport re-open the mine open and operational on July 9, 2013, Freeport back underground mines operate consent Ministry of Energy and Mineral Resources. As of July 19, 2013, Freeport cultivate 200 thousand metric tons of ore per day.

Freeport Indonesia is currently being ramped up production of the DOZ underground mine. Now, the company has to process 40 thousand metric tons of ore per day and will be increased to 80 thousand metric tons of ore per day by mid-2014.

Freeport expects to sell 900 million pounds of copper and 1 million ounces of gold in 2013, an increase over 2012 and sales of 700 million pounds of copper and 900 thousand ounces of gold.

In addition, Freeport Indonesia has also started discussing bilateral discussions with the union wage increases. Hopefully, a new contract may apply in September 2013.

Slightly turnover, Profit Drops 54% In fact XL

PT XL Axiata Tbk (EXCL) correction suffers 54% profit in the first half of 2013 to Rp 670 billion from Rp 1.46 trillion. The company’s revenue edged up 1%.

XL recorded net income of Rp 10.3 trillion in the first half of this year, from Rp 10.2 trillion in the previous position. The rise in revenue driven by increased data service revenues by 13%.

“Our performance this quarter marks our success to turn things around after a decline in the previous two quarters,” said President Director of XL Hasnul Suhaimi, in a press release on Thursday (01/08/2013).

Until the end of the first half of 2013, the XL has spent Rp 4 trillion for infrastructure investment in the data. A combination of internal funds and debt.

XL has signed a new loan agreement in U.S. dollars with Standard Chartered Bank in May 2013 for U.S. $ 50 million. Meanwhile, during the first half of this 2013 also, the amount of debt XL increased to Rp 17.1 trillion from Rp 12.7 trillion in the previous year.

“XL will remain focused on data services given the growing use of data rapidly increasing contribution to company revenues. During the first six months of this year, data revenue accounted for 22% of total revenue, compared to 19% last year, “he added.

Earnings Fall 22% Pawnshops Because Kraft

Mortgage PT (Persero) recorded a decrease in net income to Rp 718 billion in the first half of 2013. The number is down about 22% when compared with net income in the same period of the previous year of Rp 929 billion. Profit decline was due to a continued decline in the price of gold on the market.

“The decline in gold prices greatly affect the performance of the company’s significant because when the price of gold fell Mortgage loan disbursement will face obstacles because its value will go down as the price of gold down,” said Director of Mortgage Finance Agus Dwi Pramoedya when met at the Central Office Pawn Kramat, Jakarta, Thursday (01/08/2013).

However, he said, although besih profit declined but remains the company’s turnover rose. In the first half of this year, the company’s revenue still grew by 6.5% to Rp 4.1 trillion over the same period the previous year which only Rp 3.8 trillion.

Total assets also go up to Rp 33 trillion in the first half of 2013, an increase of 13% when compared to its total assets in the same period the previous year which reached Rp 29.1 trillion.

From the business side, Pawn is able to achieve a turnover in the pawning business of gold amounting to Rp 46 trillion in the first half of 2013, an increase of 6% from the same period last year of Rp 43 trillion.

“It is conventional. If sharia as of June 2013 was Rp 6 trillion, Rp 5.5 trillion last year finished up 8.6%,” he said.

In addition, the company’s customers also increased 15% to 14.4 million in the first half of 2013, when compared to the same period of the previous year which only 13.7 million.

“Seeing this increase, we believe the mortgage business will continue to grow,” he said.