Pt Merdeka Copper Gold Tbk · IDX:MDKA
Pt Merdeka Copper Gold Tbk — Q2 2022 Earnings Presentation
41 slides from Pt Merdeka Copper Gold Tbk's earnings presentation, September 2022
Slide 1: PT Merdeka Copper Gold Tbk Investor Presentation
Click to edit Master text styles PT Merdeka Copper Gold Tbk Investor Presentation September 2022 IDX: MDKA I www.merdekacoppergold.com 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by PT Merdeka Copper Gold Tbk (“Merdeka” or “MDKA”) 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 representation or war
Slide 3: Portfolio Overview
Portfolio Overview Merdeka controls an enviable portfolio of globally significant assets across Indonesia Merdeka Battery Materials (MBM) Pani Gold Project Ownership: 51.0% (SCM Mine) and 50.1% (Smelters)1 Ownership: 70% effective ownership Status: Development, Feasibility work targeted for Resource
Slide 4: Merdeka Investment Highlights
Merdeka Investment Highlights • Proven producer, • Transformational, world • Access to capital markets, • Targeting to reduce GHG developer and operator class development cash generation from emissions intensity by • Established, experienced projects underpinned by operations and ability to 29% by 2
Slide 5: Strong and Sound Financial Position
Strong and Sound Financial Position Merdeka is strongly positioned for further growth 6,000 200.0 Institutional Shareholders include Value (USD M) Market Capitalisation / Enterprise Share Price 180.0 Value 5,500 US$6.7 / US$7.3 billion1 160.0 5,000 140.0 4,500 Avg. Daily Traded Value 120.0 Share Pri
Slide 6: Merdeka Corporate Structure
Merdeka Corporate Structure AIM Project Institutional and Thohir Group (80%) Other Shareholders 5% <45% Legend: Production assets Growth / development assets Merdeka Battery Materials1 Base and Precious Metals Business Existing and Future SCM Nickel and AIM Project Wetar Copper Mine Tujuh Bukit Gold
Slide 7: 2Q 2022 Production Highlights
2Q 2022 Production Highlights Gold Copper Nickel Pig Iron 45.0 1,600 7.0 5.00 10.2 20,000 42 10.0 9.7 40.0 5.9 4.50 9.1 18,000 1,400 6.0 8.9 36 5.7 35.0 34 5.3 4.00 16,000 1,200 8.0 5.0 4.7 3.50 14,000 30.0 29 14,804 1,000 3.27 3.00 12,000 K Ounces 1,032 4.0 6.0 12,898 K tonnes K tonnes 25.0 989 12,
Slide 8: 2Q 2022 Merdeka Financial Highlights
2Q 2022 Merdeka Financial Highlights Revenue EBITDA Net Debt to Rolling EBITDA 250.0 120 2.0 218 105 1.8 1.8 100 200.0 1.6 78 1.4 80 69 67 150.0 1.2 times (x) US$ m US$ m 124 119 123 1.1 60 1.0 100.0 0.8 40 0.7 0.6 50.0 0.4 20 0.3 0.2 - - - Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2021 Q4 2021 Q1 2022 Q2
Slide 9: Tujuh Bukit Gold Mine
Tujuh Bukit Gold Mine On track to achieve 2022 guidance of 100,000 – 120,000 ounces of gold at an AISC of US$1,000 – US$ 1,200/oz net of silver credits 35.8koz of gold and 193koz of silver produced and sold at an average price of US$1,868/oz and $22/oz during 2Q 2022 US$71 million revenue achieved d
Slide 10: Wetar Copper Mine
Wetar Copper Mine On track to achieve 2022 guidance of 18,000 – 22,000 tonnes of copper at an AISC of US$3.20 – US$3.60/lb 4,683 tonnes of copper produced during the quarter and sold 5,376 tonnes at an average price of US$9,691/t during 2Q 2022 US$52 million revenue achieved during the quarter and U
Slide 11: Tujuh Bukit Copper Project
Tujuh Bukit Copper Project Merdeka has invested US$121 million to date in its wholly owned Tujuh Bukit Copper Project Pre-Feasibility Study which is targeted for completion in 1Q 2023 Pre-Feasibility Study targeting an underground mining scenario of up to 24Mtpa throughout and a copper smelter proce
Slide 12: AIM Project
AIM Project AIM is a significant growth opportunity for Merdeka and is well positioned to benefit from the growth in acid demand expected as additional HPAL plants are constructed at IMIP and across Indonesia Wetar IMIP 1 High-grade pyrite (FeS2) AIM feedstock from Step One Step Two Step Three Step
Slide 13: Construction Progress at AIM Project
Construction Progress at AIM Project Design reached 95% completion while international procurement reached 55% completion Site works completed during the quarter include: • Pyrite Plant: completion earthworks, with first mechanical installation underway with flotation cells • Acid Plant: perimeter r
Slide 14: Pani Gold Project
Pani Gold Project Pani is a significant undeveloped gold resource located across two adjacent mining tenements in Gorontalo Province Sulawesi Pani is expected to become a long-life and low-cost gold mine with the potential to produce 250koz+ per annum of gold for 15+ years Predevelopment constructio
Slide 15: Merdeka Battery Materials
Merdeka Battery Materials Recent acquisition of nickel mining and refining assets firmly establishes Merdeka as a vertically integrated, global player in the strategic minerals and EV battery value chain • JORC nickel resource of 1.1 billion dmt at 1.22% Ni, containing 13.8Mt nickel and at 0.08% Co
Slide 16: World Class Nickel Resource
World Class Nickel Resource The SCM Mine is one of the world’s largest pre-production nickel resources with containing 13.8Mt of nickel and 1.0Mt of cobalt 2.200 Sudbury 2.000 Pomalaa East 1.800 Tapunopaka Gag Island Pomalaa Bugotu Nakety/Moneo 1.600 Southern Samar Biankouma-Sipilou Weda Bay 1.400 G
Slide 17: Capturing the Entire Nickel Battery Value Chain
Capturing the Entire Nickel Battery Value Chain Merdeka Battery Materials is well positioned to capture most of the nickel value chain up to precursors by operating RKEF, nickel matte and HPAL lines Via MBM’s SCM Via MBM’s future Mine Via the AIM Project Limestone mine HPAL Inputs Sale of Limonite,
Slide 18: MBM Development Strategy
MBM Development Strategy The SCM Mine will supply saprolite ore to RKEF plants producing nickel pig iron. The SCM Mine will also supply limonite ore to HPAL plants producing Mixed Hydroxide Precipitate (“MHP”) – used in battery production • SCM Mine is expected to be a low cost and low risk open Hau
Slide 19: IKIP Development Strategy
IKIP Development Strategy IKIP is in the planning and feasibility phase – the industrial park is focused on HPAL technology, benefiting from SCM Mine’s large limonite resource IKIP will be built inside SCM’s IUP (21,000 ha) Large Site and is expected to be comparable in size to IMIP HPAL capacity IM
Slide 20: Commitment to Sustainability
Commitment to Sustainability Continued focus to be an Indonesian mining leader in safety, environmental protection and corporate social responsibility Merdeka is committed to delivering a 29% reduction in energy intensity by 20301 and reach Net-Zero Emission by 2050 Planning Hydro Power for Indonesi
Slide 21: Summary
Summary Established and Experienced Well placed to Strong balance Commitment to proven gold and Board and deliver value to sheet with low sustainability, copper management team shareholders leverage and safety, production with a proven through its ability to access environmental capability on track
Slide 22: Contact
Click to edit Master text styles For more information, please contact or visit investor.relations@merdekacoppergold.com www.merdekacoppergold.com 22
Slide 23: Appendix
Click to edit Master text styles Appendix 23
Slide 24: Overview of Key Merdeka Shareholders
Overview of Key Merdeka Shareholders Provident and Saratoga have a history of co-investment over many years with a proven track record in building value through multi-billion dollar companies, as well as attracting blue chip international institutional investors Winato Kartono Hardi Wijaya Liong Gav
Slide 25: Management Team with a Proven Track Record
Management Team with a Proven Track Albert Saputro Simon Milroy Gavin Caudle David Fowler Titien Supeno Andrew Starkey Eric Rahardja Boyke Abidin Peter Scanlon Zach Casley Doug Jones Commercial and President Vice President Title Director Director Director Director Business External Affairs Construct
Slide 26: Merdeka Project Developments Overview
Merdeka Project Developments Overview Merdeka is advancing multiple operations and growth projects through exploration, feasibility study and development phases Prior to 2022 2022 2023 2024 2025 2026 2027 Tujuh Bukit Future annual production guidance of 100,000 to 120,000 ounces of gold Produced fir
Slide 27: Select Merdeka Corporate Developments
Select Merdeka Corporate Developments Since IPO, Merdeka has engaged in a number of value adding acquisitions, as well as attracting blue chip international institutional investors and a consortium of high-quality lenders 2012-18 2019 2020 2021 2022 Sept 2012 Jun 2015 Nov 2020 Merdeka Initial Public
Slide 28: Tujuh Bukit Gold Mine
Tujuh Bukit Gold Mine Production Information Operational & Financial Performance Mining Method Conventional open pit 2019 2020 2021 1H-22 Unit Actual Actual Actual Actual Metals Gold and silver Open Pit Mining Ore Mined Mt 7.4 6.7 6.5 4.6 Mineralisation Type High sulphidation epithermal Waste Mined
Slide 29: Wetar Copper Mine
Wetar Copper Mine Production Information Operational & Financial Performance Mining Method Conventional open pit 2019 2020 2021 1H-22 Unit Actual Actual Actual Actual Metals Copper Open Pit Mining Mineralisation Type Volcanogenic massive sulphide (“VMS”) Ore Mined Mt 2.3 0.5 2.4 1.4 Waste Mined Mt 3
Slide 30: Strategic Partnership with CATL
Strategic Partnership with CATL CATL is the world's biggest EV battery manufacturer. Merdeka and CATL’s complementary strengths will enable the strategic partnership to seize opportunities in the battery metals value chain in Indonesia Strategic Rationale US$235 million 1 The transaction creates a T
Slide 31: CATL Strategic Partnership – Key Takeaways
CATL Strategic Partnership – Key Takeaways The strategic partnership will seek to capitalise on the substantial opportunities in the battery metals value chain in Indonesia driven by the global EV adoption CATL – The Right Strategic Partner Battery Metals – A Massive Opportunity Indonesia – The Righ
Slide 32: Indonesia is Host to Huge Amounts Of Critical Materials
Indonesia is Host to Huge Amounts Of Critical Materials Key Metals in EV Battery Plenty Of Key Metals Resources in Indonesia 1 Resources of Key Metals Around The World (million tonnes) Carbon Lithium Cobalt Nickel Copper Canada DR of Congo Russia 2 2 2 2 2 Copper 86.5 Copper 125.6 Copper 102.1 Nicke
Slide 33: Indonesia will be the World's Leading Nickel Supplier
Indonesia will be the World’s Leading Nickel Supplier in the Next Decade Nickel demand will increase by >50% over the next decade Indonesia will continue to dominate as nickel supplier Global nickel demand by end use (‘000 tonne) Indonesia Nickel Estimated Production (‘000 tonne) 2,226 25 2,102 441
Slide 34: Indonesian Government Capitalising on its Strategic Supply
Indonesian Government Capitalising on its Strategic Supply Aware of Indonesia’s possession of strategic resources for EV battery materials, the government of Indonesia has spent significant effort boosting Indonesia’s image as an EV global supply chain hub • Nickel ore export ban: • Nickel Ban Reins
Slide 35: World's Leading EV Players in Indonesia
World’s Leading EV Players in Indonesia Merdeka Battery Materials is well positioned as a leading supplier of EV battery precursors to capture future commercial opportunities with the world’s leading EV players • Launched the first locally made • Announced a US$6bn integrated EV IONIQ 5 in March 202
Slide 36: Road Construction IMIP to SCM
Road Construction IMIP to SCM 36
Slide 37: Feed Preparation Plant Construction at SCM
Feed Preparation Plant Construction at SCM 37
Slide 38: Overview of IMIP
Overview of IMIP CSI and BSI are located within IMIP – a world class industrial park with high quality infrastructure available, including expansive port facilities, significant power supply, water and close to high quality nickel ore supply IMIP Summary Site Photo • Tsingshan began construction of
Slide 39: Competent Person's Statements
Click to edit Master text styles Competent Person’s Statements 39
Slide 40: Merdeka Competent Person's Statement
Merdeka Competent Person’s Statement The information in this report which relates to Exploration Activities and Exploration Results is based on, and fairly represents, information compiled by Mr. Zach Casley, BSc (Hons). Mr. Casley is full-time employee of PT Merdeka Copper Gold Tbk. Mr. Casley is a
Slide 41: SCM Mine Competent Person's Statement
SCM Mine Competent Person’s Statement The information in this report that relates to Mineral Resources is based on information compiled by Mr. Mick Elias and Mr. Dmitry Pertel. Mr. Elias is a part-time employee of CSA Global Pty Ltd and Mr. Pertel is a full-time employee of AMC. Mr. Elias is a Fello
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