Key Facts from the PDF:
- Report Title: Disclaimer of Opinion by the Independent Auditor on the Audited Financial Statements for the Financial Year Ended 31 December 2023.
- Financial Year: The report covers the financial year ending on 31 December 2023.
- Date of Report: 23 September 2024.
- Auditor’s Disclaimer of Opinion: The independent auditor (Ernst & Young LLP) issued a Disclaimer of Opinion due to:
- Concerns over the appropriateness of the going concern assumption.
- Uncertainties regarding the impairment assessments of several non-current assets and investments.
- Company’s Going Concern Assessment:
- Gold mining operations have resumed in August 2024 after a temporary halt, with cyanide pricing and supply normalizing.
- The company has entered sale and repurchase agreements to raise cash by selling shares in its Indonesian subsidiary.
- Working capital loan: The company secured a loan of IDR 36.0 billion (drawdown limit of IDR 1.5 billion per month) to improve liquidity.
- Favorable vendor terms: Agreements with vendors for favorable credit terms to handle liabilities of Rp 40.7 billion.
- Offtake agreement: A counterparty agreed to provide prepayments of up to $30 million to support operations.
- Cautionary Statement: Shareholders and potential investors are advised to exercise caution when dealing with the company’s securities due to the uncertainties and are encouraged to seek independent financial advice.
Dividends:
There is no mention of dividends in the document.
Special Activities or Actions to Improve Profitability:
The company has resumed its mining operations and entered into financial agreements to raise capital through:
- Gold mining production.
- Sale and repurchase agreements.
- Offtake agreements for prepayments.
- Loan agreements and favorable credit terms with vendors.
Recommendations for Investors:
- For Existing Shareholders:
- Hold with caution: While the company has resumed operations and secured financial resources, the auditor’s Disclaimer of Opinion and uncertainties around the going concern are significant risk factors. Existing investors should closely monitor financial health and consider seeking advice from financial professionals.
- For Potential Investors:
- Avoid or approach with caution: Given the auditor’s Disclaimer of Opinion, potential investors should carefully evaluate the company’s financial stability and ability to continue operations. It is advised to consult a financial advisor before considering an investment.
Disclaimer:
These recommendations are based on the financial statements and auditor’s report. Investors should seek independent advice and thoroughly assess the company’s financial health before making any decisions.
