PT Wilton Makmur Indonesia Tbk – Interim Financial Report Highlights and Key Investor Insights (30 June 2025)

Key Points for Investors

• Significant Widening of Net Loss: The Group reported a net loss attributable to owners of the parent entity of Rp 41.5 billion for the six-month period ended 30 June 2025, a marked increase compared to a net loss of Rp 27.7 billion in the previous year.
• Negative Equity Position: The Group’s equity turned negative, with total equity at -Rp 15.79 billion as of 30 June 2025, down sharply from a positive Rp 26.5 billion at year-end 2024. This signals a potential going concern risk.
• Ongoing Accumulated Losses: Accumulated losses now stand at Rp 555.5 billion, worsening the Group’s financial position.
• Loss Per Share: Loss per share rose to Rp 2.67 (from Rp 1.78 per share in the prior comparable period), indicating deteriorating profitability for shareholders.
• Revenue Insights: The parent entity recorded no revenue for the period; all figures reflect operating and finance expenses, emphasizing the Company’s pre-production or development-stage status.
• Reverse Acquisition Structure: The Group’s corporate structure remains complex due to the reverse acquisition in 2019, with Wilton Resources Holdings Pte. Ltd. (Singapore) holding an effective controlling interest.
• Ongoing Related Party Transactions: The Group relies heavily on related party loans and reimbursements from its major shareholder and other group entities to finance operations and cover shortfalls.
• Unrealized Value in Mining Assets: The Group continues to capitalize significant amounts as exploration and evaluation assets and mine properties (including a long-term investment of Rp 3.77 trillion), but these have not been translated into positive cash flows or profits.
• Currency and Commodity Price Exposure: The Group faces material exposure to fluctuations in both foreign exchange rates and commodity prices (specifically gold), which could further impact results.
• Going Concern Assumption: The interim report is prepared on a going concern basis, but the negative equity and ongoing losses cast uncertainty over the Group’s ability to continue as a going concern without further financial support or a significant business turnaround.

Details and Analysis

Financial Performance

For the six months ended 30 June 2025, PT Wilton Makmur Indonesia Tbk (“the Group”) reported a substantial increase in losses. The consolidated net loss attributable to shareholders rose to Rp 41.49 billion (from Rp 27.65 billion for the same period in 2024), and total comprehensive loss matched this figure. The loss per share increased to Rp 2.67, a deterioration from the prior year’s Rp 1.78.

The parent entity itself did not record any revenue and posted a net loss of Rp 2.54 billion, primarily due to general and administrative expenses (Rp 2.2 billion), foreign exchange losses (Rp 135 million), and finance costs (Rp 204 million). This reflects the pre-operational status of the company or delays in converting its mining assets into revenue-generating operations.

Financial Position and Equity

The Group’s consolidated statement of financial position reveals a negative equity of Rp 15.79 billion as of 30 June 2025, a major reversal from a positive equity of Rp 26.49 billion at year-end 2024. The deficit is driven by the sustained net losses and accumulated losses totaling Rp 555.5 billion. This negative equity position is a potential red flag for creditors and shareholders and may impact the company’s ability to raise new financing or meet regulatory requirements.

The parent entity, while still showing substantial total equity (Rp 3.75 trillion), is supported almost exclusively by the book value of investments in subsidiaries and not by operating assets or retained earnings.

Liquidity and Cash Flow

The consolidated current assets stood at Rp 14.2 billion, while current liabilities were Rp 33.2 billion, indicating a working capital deficit. The Group has been relying on related party loans and credit from group entities, with due to related parties totaling over Rp 281 billion. The Group’s liquidity remains under pressure, and there is a risk that short-term obligations may not be met without further financial support.

Related Party Transactions and Group Structure

• The Group’s structure is the result of a reverse acquisition where Wilton Resources Holdings Pte. Ltd. (Singapore) became the controlling shareholder.
• The Group is heavily dependent on funding and support from its related parties (Wilton Resources Holdings, Wilton Asset Management, Wilton Resources Corporation, and key management personnel).

These related party arrangements are essential for the Group’s survival but also represent a risk if support is withdrawn or if regulatory scrutiny increases.

Mining Assets and Operations

• The Group continues to carry a large book value of exploration and evaluation assets and mine properties (including a long-term investment of Rp 3.77 trillion).
• The Ciemas Gold Project remains the Group’s main asset, with a 500-tonnes-per-day mineral processing facility under development (engineering design contract with Yantai Jinyuan Mining Machinery Co., Ltd. valued at USD 250,000).
• There is no indication that the project has reached commercial production, and thus there is ongoing uncertainty as to when or if these assets will generate positive cash flows.

Key Risks and Forward-Looking Issues

• Going Concern: The negative equity, ongoing losses, and working capital deficit cast serious doubt on the Group’s ability to continue as a going concern without new capital infusions or a significant improvement in operations.
• Commodity and Currency Exposure: The Group’s revenues (when they commence) will be highly sensitive to global gold prices and currency fluctuations, particularly in USD and SGD.
• Regulatory and Market Risks: The company’s ability to raise further capital may be constrained by its financial position, and failure to do so could result in asset sales, restructurings, or even insolvency.

Important Shareholder Information

• The negative equity and ongoing losses are highly price sensitive and could impact investor confidence and share value.
• There is no evidence of operational turnaround or revenue generation as of the period end.
• Reliance on related party funding is both a lifeline and a risk, especially if such funding is withdrawn.
• The Group’s ability to continue as a going concern is dependent on external support and/or successful commercialization of its mining assets.

Disclaimer: This article is prepared for informational purposes only and does not constitute investment advice. Investors are advised to review the full interim financial statements and consider their own circumstances and risk tolerance before making any investment decisions. The information reflects the situation as of 30 June 2025 and may change as new data becomes available.

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