JAKARTA (Yosefardi) – Gold producer PT J Resources Asia Pacific Tbk (PSAB) mulls to offer new shares through preemptive rights scheme, to boost its free float to 20% from current 7.5%.

The company needs fresh funds of US$400 million, to fund drilling activity in 5 gold mining areas. It targets to produce 500 oz gold per year within next 5 years.

PSAB also mulls to issue bonds worth US$300 million. The company reported a 47.6% drop in net profit, to US$11.78 million in first half of 2016 on sales of US$120.4 million (down 19.4%).

PSAB’s cash flow also fell 44.6% to US$31.28 million. It spent US$3.12 million for acquisition of property, plant , and equipment. It paid long term of US$179 million and made long term bank loan of US$183 million. PSAB has cash and cash equivalent of US$19.65 million.