PT Bumi Resources Minerals Tbk. - nomura.comˆ’ Complete feasibility studies for Gorontalo and...
Transcript of PT Bumi Resources Minerals Tbk. - nomura.comˆ’ Complete feasibility studies for Gorontalo and...
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PT Bumi Resources Minerals Tbk.Q1 Year 2011 Corporate Results & Updates
June 2011
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This presentation has been prepared by PT Bumi Resources Minerals Tbk (the “Company”) and is only for the informationof its investors. None of the information appearing in this presentation may be distributed to the press or other media orreproduced or redistributed in the whole or in part in any form at any time. This presentation is not intended as or formspart of any offer to sell or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities, andneither this presentation nor anything contained herein shall form the basis of or be relied on in connection with anycontract or commitment whatsoever.
This presentation may contain forward-looking statements and estimates with respect to the future operations andperformance of the Company and its affiliates. Investors and security holders are cautioned that forward-lookingstatements are subject to various assumptions, risks and uncertainties, many of which are difficult to predict and aregenerally beyond the control of the Company. Such assumptions, risks and uncertainties could cause actual results anddevelopments to differ materially from those expressed in or implied by the forward-looking statements.
Accordingly, no representation or warranty, either expressed or implied, is provided in relation to the accuracy,completeness or reliability of the information contained in this presentation, nor is it intended to be a complete statement orsummary of the resources markets or developments referred to in this presentation. It should not be regarded by recipientsas a substitute for the exercise of their own judgment.
Neither the Company or any other person assumes responsibility for the accuracy, reliability and completeness of theforward-looking statements contained in this presentation. The forward-looking statements are made only as of the date ofthis presentation. The Company is under no duty to update any of the forward-looking statements after this date toconform such statements to actual results or developments or to reflect the occurrence of anticipated results or otherwise.
Any opinions expressed in this presentation are subject to change without notice and may differ or be contrary to opinionsexpressed by other business areas or groups of the Company as a result of using different assumptions and criterion.
Confidentiality Notice
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Agenda
Asset Summary
IPO Completion & Financial Highlights
Company Highlights
Industry Outlook
Latest Corporate Achievements
1
2
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5
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BRM Corporate StructurePost IPO & MCN Conversion
Calipso InvestmentPte. Ltd.
(“Calipso”)
International Minerals
Company LLC (“IMC”)
LemingtonInvestments Pte Ltd
(“Lemington”)
PT Citra PaluMinerals
(“Citra Palu”)PT Multi Capital
Bumi Holding S.A.S.Konblo Bumi Inc.(Liberia Project)
Bumi Mauritania SA
PT Gorontalo Minerals
(“Gorontalo”)
Herald ResourcesLtd
(“Herald”)
Gain and Win Pte Ltd
PT Dairi Prima Mineral(“Dairi”)
PT Multi Daerah Bersaing(“MDB”)
PT Newmont Nusa Tenggara
(“PT NNT”)
PT Bumi Resources Tbk
PT Bumi Resources Minerals Tbk
87%
96.97%100% 99.99%99.99%99.99%
60% 94.1%(2)80% (1)100%
100%
80%
75%
24% 99%
(1) Subject to progressive divestment to 49.0 % beginning from the end of the fifth year after commencement of production at the Gorontalo project(2) Subject to dilution to 80.0%
Bumi Resources Japan Company
Limited
100%
Investment Holding Companies
Operating/ Developing Companies
Legend
Marketing service company
Public
13%
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AFRICAINDONESIA
Stake: 80% (1)
Type: Copper & Gold.Mineral Inventory (100%): 125 mio tonGrade: 0.55 g/tonne Au, 0.75 Cu.Production: 2H 2014.
Stake: 94.1% (2)
Type: Diamonds, precious metals.Exploration stage with 7 exploration leases obtained.
Stake: 18%Type: Copper & Gold.Reserve (100%): 7.7 bio lbs copper & 7.6 mio oz gold (3)
Grade: 0.6% Cu, 0.5 g/t Au (Phase 6)Q1 2011 Prod: 88 Mio lbs copper & 96 thd oz gold.
World Class Asset Portfolio
Source: BRM.
Stake: 96.97% Type: Gold, Moly.Mineral Inventory (100%): 2.5 mio ton (gold), 106 mio ton(moly).Grade: 7.5 g/ton Au, 0.14% Moly.Production: 2H 2014.
(1) Subject to progressive divestment 49.0% beginning from the end of the fifth year after commencement of production at the Gorontalo Project.
(2) Subject to dilution to 80.0%(3) As of 31 December 2010.
Bumi Mauritania
Konblo Bumi (Liberia)
Stake: 80%.Type: Zinc, leadReserve (100%): 5.4 mio ton ore (Anjing Hitam).Resource (100%): 20.1 mio ton ore (Anjing hitam, Base Camp, Lae Jahe).Grade: 13.7% Zn, 8.2% Pb.Production: 2013.
Dairi Prima Minerals
Newmont Nusa Tenggara
Gorontalo Minerals Citra Palu Minerals
Stake: 60%.Type: Iron ore.Mineral Inventory (100%): 100 mio ton.Grade: 60% Fe.Production: 2012.
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The first phase focuses on the extension of existing mine life and development of existing reserves and mineral
inventory
− Batu Hijau Phase 6 pushback has commenced
− Dairi mine expected to commence production and ramp up to 1 million tonnes per annum of production in 2013(1)
− Complete feasibility studies for Gorontalo and Citra Palu
− Development activities in Mauritania
− Exploration in Liberia
The second phase focuses on the exploration and development of existing discoveries
The first immediate priority of BRM management is to focus on core asset development and commercializing its portfolio of mining assets
FIRST PHASE SECOND PHASE
Portfolio of Assets Across Various Stages of the Development Cycle
Source: BRM.(1): The company has received the requisite licence to conduct exploration activities at Dairi on 23 October 2010, and the exploitation license is pending approval.
Exploration
P
rodu
ction Asset 2010 2011 2012 2013 2014 2015
NNT (Batu Hijau) Production
Mauritania Development DSO Production Production
Dairi (Anjing Hitam) Development Production
Gorontalo Feasibility Studies Development Production
Citra Palu Feasibility Studies Development Production
Konblo Bumi (Liberia) Exploration and development activities
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Experienced Management Team
7
Director of PT Bumi Resources Tbk since 2004 and
Chairman of Herald Resources
Commissioner of PT Kaltim Prima Coal and PT Arutmin
Indonesia since 2001
21 years work experience in mining sector from BHP
Billiton
Kenneth Patrick Farrell
President Director
Currently Chief Executive Officer of PT Kaltim Prima
Coal
Has held several senior positions in PT Bumi Resources
Extensive experience in mining operations, project
development and operations management
Endang Ruchijat
Director
Finance Director of Bakrie Energy International Pte. Ltd.
Previously Finance Director of PT Bakrie & Brothers Tbk
(2004 – 2009)
Previously Head of Corporate Banking, Bank Credit
Lyonnais, Indonesia (1995 – 2002)
Member of the Indonesia Stock Exchange (IDX) Listing
Committee
Yuanita Rohali
Director
Appointed as Unaffiliated Director
Previously Corporate Finance Director of PT Capitalinc
Investment (July 2009 – June 2010),
Assistant Vice President in Corporate Finance Division of
PT Recapital Securities
Febriansyah Marzuki
Director
Senior Management
Chief Executive Officer of Herald Resources and Dairi Prima Minerals
Managing Director of Kaltim Prima Coal with PT Bumi Resources (2003 – 2006)
Over 20 years experience in mining sector from Rio Tinto and Western Mining Corp.
Evan Ball
Head of Investor
Relations
Over 7 years experience in finance and Investor Relations within upstream oil & gas industries
Corporate Banker with ABN Amro (Global Corporate Group) and Citibank (Financial Institutions & Public Sector) (1998 – 2003)
Herwin Wahyu Hidayat
Corporate Secretary / Chief Legal
Officer
Expert in Indonesian mining law
Director of PT Multi Daerah Bersaing (owner of 24% stake in Newmont Nusa Tenggara Copper & Gold project)
Senior Legal Officer of PT Arutmin Indonesia for 5 years
Mohammad Sulthon
Board of Directors
CEO Dairi Prima Minerals
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Board of Commissioners
President Commissioner
President Commissioner of PT Energi Mega Persada Tbk (May 2007- Present)
President Commissioner of PT Kaltim Prima Coal (June 2007 - Present)
President Commissioner of PT Arutmin Indonesia (June 2007 - Present)
President Director of PT Bumi Resources Tbk
Saptari Hoedaja
Commissioner
20 years of experience as top executive within Bakrie Group of Companies
President Director PT Bakrie & Brothers, Tbk (2008 – 2010)
President Director of PT Kaltim Prima Coal and PT Arutmin Indonesia (2007 – Present)
Commissioner of PT Bumi Resources, Tbk and several Bakrie Group of Companies (2005 –Present)
Nalinkant Amratlal Rathod(1)
Independent Commissioner
Has 30 years in public accounting practice
Former Managing Partner and Chairman of KPMG Indonesia
Former Honorary Chairman of the Board of Indonesian Institute of Accountants
Kanaka Puradiredja
(1) Effective as of listing of BRM on the IDX.
Audit Committee
Senior partner at law firm Safitri & Partner
Qualified Internal Auditor
Certified in Professional Risk Management
Graduated from Legal Faculty, University of Indonesia
Participant at Wisconsin Law School
Indra Safitri
Lecturer and Assistant Director at Economy and Business Faculty, University of Gajah Mada (Magister Program)
Editor-in-Chief of the Indonesian Journal of Accounting Research
Member of the Indonesian Accounting Standard Board since 2008
Graduated from Economy Faculty majoring in Accounting University of Gajah Mada
The Fox School of Business, Temple University, Philadelphia, USA
Setiyono Miharjo
Chairman of Audit Committee
Has 30 years in public accounting practice
Former Managing Partner and Chairman of KPMG Indonesia
Former Honorary Chairman of the Board of Indonesian Institute of Accountants
Kanaka Puradiredja
Experienced Management Team
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Newmont Nusa Tenggara
Batu Hijau is a large scale open pit gold and copper
mine located in South-west Sumbawa, Indonesia
BRM currently owns 18%(1) effective interest in Batu
Hijau with the opportunity to acquire a further 7%
through PT Multi Daerah Bersaing in the near-term
One of only three mines in the world with total ore
tonnage in excess of 1 billion tonnes and gold
grades higher than 0.2g/t
Contract of Work signed with Indonesian
Government in 1986
One of the lowest cost gold or copper operations in
the world ($ 0.7/ lb copper ; $ 237/ oz gold)
Batu Hijau’s reserve of 7.7bn lbs of copper and
7.6mn oz of gold (Reserve life of 10 years for Gold
and 14 years for Copper based on 2010 production
rate)
Elang copper and gold deposit is estimated to be a
potentially larger resource than Batu Hijau
Elang exploration permit received: 27 Sep 2010 – 28
Feb 2030
Potential to extend Batu Hijau mine life through
conversion of resources
(1) BRM holds 75% of MDB which holds 24% of PT NNT.(2) Merukh Family’s interest effectively controlled by Newmont through loans made by Newmont.(3) Newmont and Sumitomo hold a 56% interest in PTNNT through the Nusa Tenggara
Partnership. Newmont is the operator.
CoW BlockProspect Location
Mine Operation
Batu HijauPinjam Pakai Area
Project AreaDrilling Programs
Alas Strait
SUMBAWA
BESAR
WEST SUMBAWA
Lunyuk
Ropang
Lemurung
Plampang
Labangka
V
VIIII
IV
Taliwang
Jereweh
Maluk
Benete Port
Alas
Utan
Langam
Pl.Tano
II
Buin batu
NORTH LUNYUK
TELUK PANAS
60 km
RINTI
BATU HIJAU ELANG RINTI
Source: Newmont
Producing Asset with Exploration UpsideBatu Hijau Gold Reserves Tonnage (Ore) Grade Contained Gold
2010 100% Equity Gold 100% Equity
(’000 tons) (oz/ton) (’000 oz) (’000 oz)
Proved 348,500 62,640 0.014 4,872 877
Probable 609,000 109,620 0.004 2,436 438
Proved and Probable 957,000 172,260 0.008 7,656 1,378
Batu Hijau Copper Reserves Tonnage (Ore) Grade Contained Copper
2010 100% Equity Copper 100% Equity
(’000 tons) (’000 tons) (%) (mm lbs) (mm lbs)
Proved 348,500 62,640 0.5% 3,584 645
Probable 609,000 109,620 0.35% 4,125 743
Proved and Probable 957,000 172,260 0.40% 7,709 1,388
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Batu Hijau Pit Harbor and Power Plant
Processing Plant
Source: Newmont.
Newmont Nusa TenggaraEstablished Facilities & Infrastructures
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Copper Production (On 100% Basis)(1)
Source: Newmont.(1) Note that BRM has 18% effective interest in PT NNT which was acquired in November 2009 and March 2010.
Gold Production (On 100% Basis)(1)
Newmont Nusa Tenggara• Temporary production drop in 2011 – 2012 due to phase 6 pushback. Phase 6 already commenced in 2010 and will complete in 2012• 2013 production rate is expected to be similar to peak performance in 2010
145
88
0
20
40
60
80
100
120
140
160
1Q 2010 1Q 2011Copper (mm lb)
Q1 2011
Copper Production (On 100% Basis)(1)
166
96
0
20
40
60
80
100
120
140
160
180
1Q 2010 1Q 2011
Gold (koz)
Q1 2010 Q1 2011
Gold Production (On 100% Basis)(1)
Q1 2010
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Copper Production Cost per Pound Sold (US$/lb)(3) Gold Production Cost per Ounce Sold (US$/oz)(3)
(US$ / Ib) (US$ / oz)Current spot price(2): US$4.41/lb Current spot price(2): US$1,419/oz
Copper Production Cost per Pound Sold (US$/lb)(2) Gold Production Cost per Ounce Sold (US$/oz)(2)
(US$ / Ib) (US$ / oz)Current spot price(1): US$4.27/lb Current spot price(1): US$1,437.8/oz
Depreciation & AmortizationCost Applicable to Production Depreciation & AmortizationCost Applicable to Production
Newmont Nusa TenggaraEfficient Copper & Gold Producer
Source: Newmont.(1) Bloomberg as at 31 March 2011(2) Newmont Mining Corp 10-K Annual Report Sec Filings
Q1 2010 Q1 2011 Q1 2010 Q1 2011
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2010A Cu Production
(million pounds)
Source: 31 Dec 2010 Xstrata Production Report, Freeport 10-K Form, BHP Production Report, OK Tedi Q4 Results, OZ Mineral Annual Report, Newmont Operating Stats
Batu Hijau is one of the largest producing copper and gold mines in the world with further upside from the potential development of the large scale Elang copper and gold deposit
Newmont Nusa TenggaraOne of the Top Producing Copper Mines in Asia Pacific
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Dairi is a very high grade zinc resource located in NorthSumatra and is proposed to be developed as anunderground mining operation
Strategic location with respect to smelters andshipping routes
Contract of Work signed with Indonesian Governmentin 1998, subject to a 30 year term from thecommencement of production
Obtained exploration borrow and use permit onOctober 11, 2010 to undertake exploration activities inthe protected forest area
Presidential Decree to allow underground mining withinprotected forest area is in place on 19 May 2011 (nextstep: exploitation borrow & use permit from Ministry ofForestry)
One of the highest grade zinc deposits in the world(Grades of 13.7% Zn, 8.2% Pb and 9.9 g/t Ag)
Low estimated net by-product cash cost of US$0.21/lb
Initial 7 year mine life based on 5.4 million tonnes of orereserves at Anjing Hitam which is expected to befollowed by production from the Lae Jehe deposit
Total Resources of 20.1 million tonnes (Anjing Hitam =8 mio tonnes, Lae Jahe = 11.3 mio tonnes, Base Camp =0.8 mio tonnes)
Source: BRM.
Dairi Prima MineralNear Term Producing asset with High Zinc Grade
Tonnage (Ore) Grade Contained Zinc
Anjing Hitam Zinc Reserves 100% Equity Zn 100% Equity
(’000 tonnes) % (mm lbs) (mm lbs)
Proved 4,400 3,500 13.9 1,354 1,083
Probable 1,000 800 12.7 293 235
Total zinc reserves 5,400 4,300 13.70 1,648 1,318
Tonnage (Ore) Grade Contained Lead
Anjing Hitam Lead Reserves 100% Equity Pb 100% Equity
(’000 tonnes) % (mm lbs) (mm lbs)
Proved 4,400 3,500 8.4 818 655
Probable 1,000 800 7.4 171 137
Total Lead reserves 5,400 4,300 8.20 989 791
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Significant Zinc and Lead Reserves and Resources
Source: BRM, Mining Plus Pty Ltd and Herald Resources.
One of the Highest Zinc Grade Assets in the World
Source: AME estimates.
# of ProjectsGrade (% / g/t) Contained Metal (mm Ibs / oz)
Reserves
Tonnes
(000s) Zn Pb Ag Zn Pb Ag
Proven 4,400 13.9% 8.4% 10.0 1354.2 818.3 1.420
Probable 1,000 12.7% 7.4% 9.6 293.4 171.0 0.323
Total 5,400 13.7% 8.2% 9.9 1647.6 989.3 1.744
Resources
Measured 5,400 16.5% 10.2% 1,964.3 1,214.3
Indicated 9,700 11.7% 6.5% 2,502.0 1,390.0
Inferred 5,000 9.4% 5.3% 1,036.2 584.2
Total 20,100 12.5% 7.2% 5,502.5 3,188.5
Total zinc, lead and silver equity reserves and resources at the Anjing
Hitam prospect as of July 26, 2010 are set out in the table above.
Tonnages are rounded to the nearest 100,000.
Dairi
Dairi Prima MineralOne of the Higher Grade Zinc Projects in the World
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Significant Life of Mine Production
Source: BRM, Mining Plus Pty Ltd and Herald Resources.
Source: AME estimates.
Estimated Global Zinc Cash Costs by Mine Site 2012
400.0 400.0
360.0 360.0
320.0 320.0
280.0 280.0
240.0 240.0
200.0 200.0
160.0 160.0
120.0 120.0
80.0 80.0
40.0 40.0
0.0 0.0
-400.0 -400.0
-300.0 -300.0
-200.0 -200.0
-100.0 -100.0
0.0 0.0
0 2000 4000 6000 8000 10000
Dairi
US¢/lb US¢/lb
Cumulative Production
Dairi Prima MineralSteady State Production Estimate
Life of MineTotal Ore Production (‘000s tonnes) 5,473
Total Zinc Metal Production (‘000s tonnes) 750
Total Lead Metal Production (‘000s tonnes) 450
Total Silver Production (‘000s oz.) 1,749
Mining Opex (US$/tonne) US$45.99
Processing Costs US$36.32
Overheads and Royalties US$21.40Total Cash Costs (US$/tonne) US$103.71Budgeted Capital Expenditure US$311mSteady State Production (‘000 tonnes p.a.) 115 (Zn); 60 (Pb)
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Overview
Location
Currently active in these two following areas:
− Tamagot region, south of the town of Akjoujt,
and 250 km North-East of the capital
Nouakchott
− S’fariat region, 250 km north of the town of
Zouerat in northern Mauritania
Potential for two producing operations
− Direct shipping ore from Tamagot region
(Drilling completed in Aug 2010, awaiting
chemical analysis results)
− Concentrate for pellet feed from S’fariat
region
Additional development opportunity recently
acquired through phosphate tenements in
South of Mauritania. Drilling to commence in 4Q
2010
DSO production expected to commence in late
2011
Source: BRM.
Bumi MauritaniaNear Term Producing Iron Ore Project
Mineral Inventory
Tonnage (Ore)
Mineral Grade
Contained Metal
100% Equity 100% Equity
(’000 tonnes)
Mauritania Project 100,000 60,000 Iron 58% 58,000 Mt 34,800 Mt
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Overview
Location
Has COW rights to a 36,070 hectare mining
concession located in the Bone Bolango Regency
(Province of Gorontalo)
Based on explorations to date, the following have
been identified in the concession:
− Four copper and gold systems
− Three gold, silver and copper systems
− Four gold and silver systems
Currently working on advanced exploration and
feasibility studies for development of the mines
Conducted a scout drilling program in the South of
the COW area in 2008
JORC Resource to be completed by end 2012 with
commissioning expected in 2H 2014
Target large scale porphyry style mine similar to
Batu Hijau
Focus on projects at Cabang Kiri East and Sungai
Mak for porphyry copper and Tulabolo for
epithermal mineralization
Conceptual development model is to build a 25
million tonnes per annum (feed tonnes) copper
concentration plant that would be able to process
0.6% of copper and 0.6 grams per tonne of gold
material
Source: BRM.(1) Subject to progressive divestment to 49.0% beginning from the end of the fifth year after commencement of productino at the Gorontalo Project.
Gorontalo MineralsMedium Term Growth Copper & Gold Asset
Mineral Inventory
Tonnage (Ore)
Mineral Grade
Contained Metal
100% Equity 100% Equity
(’000 tonnes)
Gorontalo Project 125,000 100,000
Gold 0.55 g/tonne 2.4 mm oz 1.9 mm oz
Copper 0.75% 2,067 mm lbs 1,653 mm lbs
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Overview
Location
Has rights to a 138,889 hectare mining
concession in Central Sulawesi and South
Sulawesi, Indonesia through a COW
Contract area consists of six separate blocks, of
which the Poboya Gold Prospect is the most
promising
Initial mineral inventory of:
− Blok 1: 2.5 million tonnes with 7.5 g/t gold
− Blok IV: 106 million tonnes at 0.14%
molybdenum
Conducted a baseline study on economic,
social, health and environment in preparation
for a detailed infill drilling program in 2011
JORC Resource to be completed by end 2012
with commissioning expected in 2H 2014
Source: SRK.
Medium Term Growth Copper, Gold, Moly Asset
Citra Palu Minerals
Mineral Inventory
Tonnage (Ore)
Mineral Grade
Contained Metal
100% Equity 100% Equity
(’000 tonnes)
Citra Palu Project
2,500 2,400 Gold 7.5 g/tonne 0.7 mm oz 0.6 mm oz
106,000 103,000 Molybdenum 0.14% 8 mm lbs 7 mm lbs
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Overview Location
94.1% (1) owned by BRM
Significant potential to discover world class
diamond and gold deposits
Has seven exploration licenses to explore for
gold, diamond and base metals (Two were
awarded in 2009, remaining five were awarded
in January of 2010)
Current focus is on two diamond license areas
located northwest of capital Monrovia and east
of the town of Kakata
Helicopter-borne magnetic survey has been
completed
Survey located a number of areas that display
features strongly indicative of Kimberlite pipes
as large as 5 hectares
Licenses located in southern Liberia have
excellent potential for economic gold
discoveries
(1) Subject to dilution to 80.0%
Growth Opportunities from Exploration Diamond & Precious Metal
Konblo Bumi (Liberia)
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$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
2007 2008 2009 2010 2011 2012
10,000
11,000
12,000
13,000
Historical (LHS) Forward curve (LHS) Demand (RHS)
$0
$300
$600
$900
$1,200
$1,500
2007 2008 2009 2010 2011 2012
3,800
4,000
4,200
4,400
4,600
Historical (LHS) Forward curve (LHS) Demand (RHS)
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
2007 2008 2009 2010 2011 2012
17,000
18,000
19,000
20,000
Historical (LHS) Forward curve (LHS) Demand (RHS)
23
Strong Industry Outlook with Exposure to High Margin MetalsBRM’s portfolio: Exposure to highly attractive commodities with strong fundamentals
Copper (US$/lb), estimated demand (kt)(3)
Gold (US$/oz), estimated demand (kt)(3)
Zinc (US$/lb), estimated demand (kt)(3)
(1): UN Department of Economic & Social Affairs.(2): IMF World Economic Outlook.(3): Demand data from AME estimates, historical and forward prices from Bloomberg (as of
1 October 2010)
Drivers of Gold Demand
In 2008 and 2009, estimated gold demand from the investment sectorrose significantly, driving a substantial increase in the price of gold overthis period
This trend has continued throughout 2010 with gold prices reachingrecent highs as a result of investors’ fears in the value of currency andthe risks relating to other asset classes
AME forecasts that the price of gold will remain at relatively high levelsuntil 2012 as investor demand for gold remains strong relative tohistorical levels
GDP growth forecasts(2)
Global migration to urban environments(1)
$5.00
$4.00
$3.00
$2.00
$1.00
$0.00
2007 2008 2009 2010 2011 2012
20,000
19,000
18,000
17,000
Historical (LHS) Forward Curve (LHS) Demand (RHS)
$1,500
$1,200
$900
$600
$300
$0
2007 2008 2009 2010 2011 2012
Historical (LHS) Forward Curve (LHS) Demand (RHS)
4,600
4,400
4,200
4,000
3,800
$2.50
$2.00
$1.50
$1.00
$0.50
$0.00
2007 2008 2009 2010 2011 2012
Historical (LHS) Forward Curve (LHS) Demand (RHS)
13,000
12,000
11,000
10,000
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Newmont / Sumitomo hold a
56% stake in Batu Hijau and
are obliged to divest a further
7%
Newmont (market cap1:
US$27.0bn) is one of the
world's largest gold producers
Strength in large scale open
pit mining operations
(Nevada, Yanacocha,
Boddington)
Batu Hijau is a major source
of operating income
Sumitomo Corporation
(“SMC”) (market cap1:
US$10.04bn) is a trading
company that imports and
exports a wide variety of
goods such as metals,
machinery, fuel, and food
products
Newmont / Sumitomo hold a
56% stake in Batu Hijau and
are obliged to divest a further
7%
Antam is 20% owner of Dairi
Minerals
Antam (market cap1:
US$2.5bn) is a vertically
integrated, Indonesian state-
owned enterprise
Antam’s main products are
ferronickel, nickel ore, gold,
silver and bauxite
Antam currently operates:
− one nickel mine
− three ferronickel
smelters in Southeast
Sulawesi
− three nickel mines in
North Maluku
− one gold mine and one
gold smelter in West
Java
− one bauxite mine in Riau
− one precious metal
refinery in Jakarta
Bumi Resources (market cap1
US$8.0bn) is one of the
leading coal miners in
Indonesia
Its principal business includes
the exploration and
exploitation of coal deposits,
coal mining and selling, and
oil exploration
Bumi hold rights to mine for
coal through its two
subsidiaries:
- KPC: c. 90,960
hectares in East
Kalimantan until 2021
- Arutmin: c. 70,153
hectares in South
Kalimantan until 2019
Synergies with High Quality and Industry Leading Partners
Source: Public disclosures of the relevant company.Note: Based on currency conversion of USD/IDR of 8,928 and USD/JPY of 83.37.(1) Bloomberg as of March 31, 2011
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IPO Transaction Completed (Dec 2010)
PT Bumi Resources Minerals Tbk (“BRM” or the “Company”)Issuer
3,300 million shares (Gross Proceed = Rp. 2.1 trillion or $232 million)
MCN is to be converted into 7,410,541,000 shares 3 months after listing date
2,200 million warrants. Warrant Ratio 3:2 (Potential gross proceed = Rp. 1.5
trillion or $171 million)
100% Primary Shares – Under BAPEPAM-LK & Regulation S
Offering Size and Structure
Indonesia Stock Exchange (“IDX”)Listing
US148.8m to repay bridge loan obtained in May 2010 for Capex & Working
Capital requirements
Part of additional funding for capital expenditures & working capital
requirements
Use of Proceeds
Danatama Makmur & Nomura IndonesiaJoint Global Coordinators,
Lead Managing Underwriters
6 months after BAPEPAM-LK Effective DateLock up Period
Credit Suisse, J.P. Morgan, NomuraInternational Selling Agents
26
Exercise price: IDR 700 per warrant
Trading Period: 9 Dec 2010 – 26 Nov 2012
Exercise Period: 9 Jun 2011 – 30 Nov 2012
Warrant Details
IDR 635 per sharePrice
Sinarmas SekuritasDomestic Co-Lead Underwriter
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IPO Fund Usage:
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(in US$ million) As at June 30, 2010 IPOBV and CS
Loan RepaymentPost-IPO MCN Conversion
Pro-Forma
(post-IPO and post-MCN
conversion)
Total Stockholders' Equity 1,012.3 232 0.0 1,244.3 546.0 1,790.3
Total Debt: 1,037.4 849.0 303.0
MCN 546.0 0.0 0.0 546.0 (546.0) 0.0
Bright Ventures Loan 148.8 0.0 (148.8) 0.0 0.0 0.0
CS Facility 270.6 0.0 (39) 231.0 0.0 231.0
Nomura Loan 21 0.0 0.0 21 0.0 21
Other 51 0.0 0.0 51 0.0 51
Capitalization 2,049.7 2,093.3 2,093.3
Debt/ Equity 1.0x 0.68x 0.17x
(1)(2)
(3)
Note: Exchange rate of 9,083 IDR/USD
(1) MCN outstanding is converted into BRM shares at 5% above the offering price three months post-listing (9 March 2011)(2) IPO assumes 100% primary share issue of 4,323mm shares(3) Loans from Bumi to MDB, CPM.
Adjusted EBITDA is calculated as EBITDA plus gross dividends received from associated company. Gross dividends received from associated company relate to dividends from Multi Daerah Bersaing’s 24.0% interest in PT NNT, prior to deducting withholding tax of 15.0%
To Deleverage and Recapitalize Balance Sheet, and for Capex & Working Capital.
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Capital Expenditure Estimate
(1) Values below US$10 million not labelled.(2) Capital expenditure for Gorontalo and Citra Palu not projected beyond 2012 as capital expenditure from 2013 onwards depends on the outcome of feasibility studies in relation to such
projects(3) Capital expenditures for Gorontalo, Citra Palu and Liberia represents indicative cost for exploration / completion of a feasibility study,
(in US$ millions)
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[35]
[35]
[30] [ ]
[50]
Dairi commences productionMauritania commences DSO
production
[35]
[30]
[35]
[50]
[70]
US$240m
US$275m
US$66m
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Financial Highlights Q1 Year 2011
Q1 2010 Q1 2011
Revenues (‘000) - 37,573,888
Interest & financing Charges (‘000) (205,805,274) (100,408,747)
EBITDA (‘000) (679,101) 7,550,300
Equity in Net Income of Assoc. Company (‘000) 511,511,195 359,013,935
Net Profit (‘000) 271,283,972 138,525,501
Cash & Equivalents (‘000) 35,821,920 687,266,848
Total Debt (‘000) 7,882,721,140 2,675,908,843
Equity (‘000) 9,330,184,200 16,760,163,463
Debt to Equity 0.84X 0.15X
Net Debt to Equity 0.84X 0.11X
Q1 2010 Q1 2011
NNT Copper production (100%) (lb) 145,000,000 88,000,000
NNT Gold production (100%) (oz) 166,000 96,000
NNT Copper realized price $3.33/lb $4.00/lb
NNT Gold realized price $1,106/oz $1,382/oz
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Obtained exploration permit for Dairi Prima - Herald’sconcession (Zinc & lead)
Oct 2010
Obtained exploration permit for Gorontalo Mineral’s concession(Copper & gold)
Dec 2010
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Completed IPO transaction and used the fund to repay $148.8 mio BrightVenture’s loan and to finance working capital & capex of assets (DERimproved to 0.7 x)
Dec 2010
Corporate Achievements (Sep 2010 – Jun 2011)
Received Award for year 2010 Best Equity Deal in Southeast Asia from theAlpha Magazine in Singapore
Feb 2011
BUMI Converted its $546 mio Mandatory Convertible Note into equityownership in BRMS (DER improved to 0.1x)
Mar 2011
Presidential Decree no. 28 year 2011 was issued on 19 May 2011. TheDecree allows conditional underground mining in the protected forestarea
May 2011
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Company History
BRM, in its present form, was formed through a series of
transactions principally in 2009 and 2010
− July 2009 – Bumi purchased 99.8% of Panorama from an
independent third party. In May 2010, Panorama changed its
name to BRM
− Nov 2009 – Bumi entered into a $850 mm facility(1) with
MDB, which was used to purchase 24% of PTNNT
− Dec 2009 – BRM purchased receivables under the
shareholder loans provided by Bumi to Calipso, Lemington,
IMC and Citra Palu (collectively “the Subsidiaries”) using
various promissory notes
− Feb 2010 – Part of the receivables from the Subsidiaries
were converted to equity
− Feb 2010 – BRM repaid its promissory notes to BUMI after
issuance of new shares of BRM, which was fully subscribed
by BUMI
− June 2010 – BRM signed conditional SPA with BUMI to
transfer MDB loan to BRM and BRM has agreed to issue
mandatory convertible notes to BUMI which will be
converted three months after the listing date
− June 2010 – BRM signed SPA with Bumi to purchase 100%
of shares in Bumi Japan
2003 Company established as PT Panorama Timur Abadi
(“Panorama”)
2005
Bumi Resources acquired 80% of Gorontalo Mineralsfrom BHP Billiton
Acquired 100% of Citra Palu Minerals from NewcrestMining
2007
In July 2007, Bumi Resources entered into a jointventure, Bumi Holding S.A.S., with a local partner inMauritania. Bumi Holding S.A.S. incorporated BumiMauritania to conduct activities in Mauritania
Bumi Resources launched a takeover bid for HeraldResources
In 2007, Bumi Resources established Konblo Bumi inLiberia
2009
Bumi Resources acquired the Company from theexisting owner (Risty Istiana)
Bumi Resources completes takeover of HeraldResources
2010
Company changed its name to PT Bumi ResourcesMinerals Tbk
BRM completed the acquisition of its 24% stake in PTNNT through its 75%-owned subsidiary, MDB
BRM undertook a stock split and reduced par value ofits share from IDR1,000,000 per share to IDR625 pershare
Reorganization
(1) Later amended in Feb 2010.
2004 Bumi Resources established Bumi Resources Japan
Company Limited (“Bumi Japan”) in Japan as amarketing service company