Pt Merdeka Copper Gold Tbk · IDX:MDKA
Pt Merdeka Copper Gold Tbk — Investor Presentation (June 2019)
32 slides from Pt Merdeka Copper Gold Tbk's investor presentation, June 2019
Slide 1: Indonesia's World Class Copper Gold Champion
Indonesia’s World Class Copper Gold Champion June 2019 PT Merdeka Copper Gold Tbk. 1
Slide 2: Disclaimer
Disclaimer Forward Looking Statements This presentation has been prepared by Merdeka Copper Gold Tbk (“Merdeka”) and consists of written materials/slides for a presentation concerning Merdeka. By reviewing/attending this presentation, you agree to be bound by the following considerations: No represe
Slide 3: Asset Overview
Asset Overview Production and quality growth profile Producing Assets Exploration and Development Upside Copper and Gold Production Porphyry Copper Project Growth Tujuh Bukit and Wetar Tujuh Bukit Underground Copper / Gold Identified & executable growth options Tujuh Bukit World Class Resource Pani
Slide 4: Key Success Factors
Key Success Factors 1. Strong and Reliable Indonesian Shareholders 2. Sound Financial 6. Very prospective Position Geology Merdeka Copper Gold 5. Quality Assets 3. Experienced Management Team 4. Commitment to sustainability PT Merdeka Copper Gold Tbk. 4
Slide 5: 1. Strong and Reliable Indonesian Shareholders
1. Strong and Reliable Indonesian Shareholders Who actively support the business Provident Group, Saratoga Group and Garibaldi (Boy) Thohir owns more than 50% of Merdeka. Apart from Merdeka, the major assets of the three groups include: Provident Saratoga Boy Thohir 23.6% 23.9% 8.8% Gojek Tower Bers
Slide 6: 2. Sound Financial Position
2. Sound Financial Position Built on operational performance Corporate Structure Hedging Primary Listing Indonesia Stock Exchange H2 2019 52,633 ounces at US$ 1,314/oz Gold Ticker MDKA.IJ Hedge 2020 48,510 ounces at US$ 1,329/oz Shares Outstanding 4,164,518,330 Copper 2019 Nil Share Price1 Rp 4,060
Slide 7: 3. Management Team
3. Management Team Strength across all key disciplines Team Member Experience Richard Bruce After being Vice President at Freeport Indonesia for eight years and Country Head of Newmont Ness (Rick) Indonesia for many years, Rick became a Director at Indika Energy in 2008. Rick joined Merdeka in Direc
Slide 8: 4. Sustainability
4. Sustainability Track record showing commitment to the long term • Tujuh Bukit 14.8 m hours no LTI • Wetar 4.4 million hours no LTI • Conservative engineering to minimize environmental impacts • Community development programs run by local teams to international standards • Sustainability Report fo
Slide 9: 5.1 Tujuh Bukit Oxide Project
5.1 Tujuh Bukit Oxide Project Conventional open pit, heap leach production Mining Method Conventional Open Pit Metals Gold and Silver Mineralisation Type High Sulphidation Epithermal Process Method Oxide Heap Leach Plant Capacity - Crushing & Stacking Expanding to 22,500 t/day - HLP & ADR Max. 8.2 M
Slide 10: 5.1 Tujuh Bukit Oxide Project
5.1 Tujuh Bukit Oxide Project Conventional open pit, heap leach production Open pit mining Ore preparation plant • Low strip ratio from five pits • Ore is crushed to 75 mm and agglomerated at • Conventional drill / blast and load & haul operation 4 Mtpa through an Ore Preparation Plant • Transitioni
Slide 11: 5.1 Tujuh Bukit Oxide Project
5.1 Tujuh Bukit Oxide Project Conventional open pit, heap leach production Heap Leach ADR Plant • Agglomerated ore trucked to leach pad • Solution containing gold and silver pumped • Truck stacked and irrigated with diluted cyanide from heap leach to ADR plant solution for 150 days • Gold and silver
Slide 12: 5.1 Strong Operational & Financial Performance at Tujuh Bukit
5.1 Strong Operational & Financial Performance at Tujuh Bukit Guidance being consistently achieved Unit 2017 Actual 2018 Actual Q1 2019 Actual Expansion Project Open Pit Mining Ore Mined M Tonnes 3.3 5.3 1.7 • Increased resource to reserve conversion Waste Mined M Tonnes 4.1 9.4 2.1 (additional 350
Slide 13: 5.2 Wetar Copper Project
5.2 Wetar Copper Project Open pit, heap leach operation Open Pit Mining • Low strip ratio, positive reconciliation • Legacy geotechnical issues at Kali Kuning pit – pit finishes Q2 2019 • Transitioning from Kali Kuning pit to Lerokis pit during Q2/3 2019 • High grade deposits between 2-3% Cu • Conve
Slide 14: 5.2 Wetar Copper Project
5.2 Wetar Copper Project Open pit, heap leach operation Heap Leaching • Ore crushed to -18 mm and stacked to heap leach pads using grasshoppers and trucks • Irrigated and aerated for + 720 days • Unique sulphide leach generates acid from water irrigation • Existing crusher system limited capacity an
Slide 15: 5.2 Wetar Copper Project
5.2 Wetar Copper Project Open pit, heap leach operation Process Plant • Heap leach solution containing copper is extracted with Solvent Extraction (“SX/EW”) • The efficiency of extraction has been affected by high acid levels (+ 45 g/l) • Neutralization plant operation has been significantly improve
Slide 16: 5.2 Wetar Operations
5.2 Wetar Operations Turnaround and improvement initiatives Copper Production 2017 Production (23 kt) 30,000 - Stacked 17 kt Cu of dump leach material - Heaps developed with inadequate aeration 20,000 - Low acid levels 10,000 2018 Turnaround (17 kt) - Re-handle dump leach, re-install aeration 0 sulp
Slide 17: 5.2 Wetar Operations
5.2 Wetar Operations Operational performance Unit 2017 Actual 2018 Actual Q1 2019 Actual Open Pit Mining Ore Mined M Tonnes 1,884 1,588 0.198 Waste Mined M Tonnes 1,366 1.409 0.369 Mined Grade Cu % 2.09 2.98 2.57 Contained Metal Cu t 39,384 47,272 5,106 Heap Leach Production Ore Crushed and Stacked
Slide 18: Wetar Mine Plan
Wetar Mine Plan Development layout plan ▪ Kali Kuning pit finishes in Q2 2019, plan is to use as leach pads ▪ Lerokis pit commences Q2 2019 and continues through to 2021 ▪ Significant new resource defined at Partolang – Resource Partolang Definition Ongoing Classification Tonnes Grade Cont. Metal (M
Slide 19: 5.2 Wetar Exploration
5.2 Wetar Exploration Partolang conceptual plan – next mine at Wetar PT Merdeka Copper Gold Tbk. 19
Slide 20: 6. The right geological address for copper and gold
6. The right geological address for copper and gold Big profits have / are being made Toka Tindung Gosowong Grasberg (Freeport) Resource 4.0 m Au In production since 1998 – Resource 34.2 mt Cu, 91.4 m Au Annual Production 132 k Au 4.8 m oz Au Annual Production 550 k Cu, 2.7 m Au In production since
Slide 21: 6.1 Tujuh Bukit Porphyry Project
6.1 Tujuh Bukit Porphyry Project PFS underway for potential mass underground mine development Oxide open pit mine 2017 to 2025 Upper High Grade Zone (UHGZ) Subset of Total Porphyry Underground Exploration Target 250-300 Mt @ 0.7-0.9 % Cu & 0.7- 0.9 g/t Au From 2025 for +20 years Total Porphyry Infer
Slide 22: 6.1 World Class Mineral Resource
6.1 World Class Mineral Resource Initial >20 years target Upper High Grade Zone PT Merdeka Copper Gold Tbk. 22 Source: Company Annual Reports and Industry Data
Slide 23: 6.1 Concept Study Outcomes - UHGZ
6.1 Concept Study Outcomes - UHGZ Justify PFS and show strong investment case Study Outcomes • Initial project life >20 years exploiting around 14% of the total porphyry inferred Resource • 260 Mt treated containing 6 Moz of gold and 2 Mt of copper • 12 Mt per annum ore throughput • Modest initial c
Slide 24: 6.1 Recent surface drilling
6.1 Recent surface drilling Validates porphyry quality Figure 1 shows a plan of the Upper High Grade Zone (-300 Figure 2 shows a cross section looking due north at the meter RL) with completed drill holes and assay results completed directional drilling program targeting the East Block of the Upper
Slide 25: 6.2 Pani Acquisition
6.2 Pani Acquisition Significant addition to growth pipeline • Outcrops, thick, low strip • Resource is open, hallmarks of a large system • Mining IUP, with additional license area applied for processing and refining operations • Initial metallurgical testing shows high recoveries Mineral Resources1
Slide 26: Merdeka – Indonesia's new World Class Mining Company
Merdeka – Indonesia’s new World Class Mining Company Delivering its strategy Actual Forecast 141,468 Au 167,000 oz Au 160,000 to 200,000 oz Au pa 17,000 t Cu 21,000 to 25,000 t Cu pa 2015 2016 2017 2018 2019 2020 • Wetar Acquisition • Pani Acquisition Drill Results from Wetar • US$ 50 m acquisition
Slide 27: Appendix
Appendix PT Merdeka Copper Gold Tbk. 27
Slide 28: Strong and Reliable Indonesian Shareholders
Strong and Reliable Indonesian Shareholders • With the assistance of the major shareholders, Merdeka obtained all permits and self constructed Tujuh Bukit • Since gaining control of Finders, significant advances have been made in stakeholder management and permitting (e.g. Partolang drilling) • The
Slide 29: Tujuh Bukit Oxide Project Expansion
Tujuh Bukit Oxide Project Expansion Delivers more cash flow over same mine life • Expansion Project increased resource to reserve conversion and maintains higher production levels over the same 9 year mine life from December 2016 with ore mining ending Q1 2025 • Capital expenditure of US$ 41 million
Slide 30: Tujuh Bukit Porphyry Copper Project
Tujuh Bukit Porphyry Copper Project Upper High Grade Zone is clear focus for PFS • Upper High Grade Zone “UHGZ” comprising 4 “blocks” of ~75 Mt each; • East, North, West, South blocks; and • Prioritize highest value East block. • Exploration decline development commenced (~ 2,000 meters) and designe
Slide 31: Wetar Exploration
Wetar Exploration Lerokis development plan ▪ Mining commenced March 19 and first ore April 19 ▪ 2.7Mt at 2.8% for 76 Kt Cu reserve ▪ Low strip ratio ▪ LOM plan to Q4 20 - Q1 21 ▪ Crush at Lerokis and 15 km road truck haul to plant ▪ Heap leach and process at Kali Kuning facility ▪ Similar to Kali Ku
Slide 32: Community
Community Agriculture Improvement Farmer school Duck Rearing Road School Infrastructure Infrastructure PT Merdeka Copper Gold Tbk. 32
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