PT Merdeka Copper Gold Tbk · IDX:MDKA
PT Merdeka Copper Gold Tbk — Investor Day (May 2019)
40 slides from PT Merdeka Copper Gold Tbk's investor day presentation, May 16, 2019
Slide 1: Tujuh Bukit Oxide Project
Tujuh Bukit Oxide Project James Francis, GM - Operations Investor Day 16 May 2019 PT Merdeka Copper Gold Tbk. 1
Slide 2: Agenda
Agenda 1. TBO Overview 2. HSE 3. Oxide Operations PT Merdeka Copper Gold Tbk. 2
Slide 3: Indonesia, a great address for copper & gold
Indonesia, a great address for copper & gold 0.5 B lb Cu PT Merdeka Copper Gold Tbk. 3
Slide 4: Tujuh Bukit – A Tier 1 Mineral Resource
Tujuh Bukit – A Tier 1 Mineral Resource Oxide Project – Proved & Probable Ore Reserves “UHGZ” - Subset of Porphyry Inferred Resource 43 Mt @ 0.82 g/t Au & 23 g/t Ag 250-300 Mt @ 0.7-0.9 % Cu + 0.7-0.9 g/t Au Tujuh Bukit Porphyry – All Inferred Resources 1.9 Bt @ 0.5 % Cu + 0.5 g/t Au + 93 ppm Mo PT
Slide 5: Tujuh Bukit – Mining Operations Permit (IUP)
Tujuh Bukit – Mining Operations Permit (IUP) Protected Forest Production Forest PT Merdeka Copper Gold Tbk. 5
Slide 6: Tujuh Bukit – General Site Arrangement
Tujuh Bukit – General Site Arrangement Major Regulatory Permits: IUP – Mining Operations Permit (4,999 Ha) issued by ESDM IPPKH – Forest Area ‘Borrow Use’ Permit (993 Ha) issued by Forestry Department GoI Feasibility Study (FS) approved by ESDM AMDAL – Environment Impact Assessment approved by DLH I
Slide 7: Tujuh Bukit – OH&S
Tujuh Bukit – OH&S LOST TIME INJURY FREQUENCY RATE Monthly… 3 Month… 12 Month… 4.0 April 2019: 14,254,703 man-hours LTI free 3.0 2017 to 2019 – Zero LTI’s during Commissioning & Ramp-Up of Operations 2.0 1.0 0.0 Jan-17Feb-17Mar-17Apr-17May-17Jun-17 Jul-17Aug-17Sep-17Oct-17Nov-17Dec-17Jan-18Feb-18Mar
Slide 8: Tujuh Bukit – Environment Reclamation
Tujuh Bukit – Environment Reclamation CWD Reclamation - Before CWD Reclamation - After Monitoring MIA WD Rehabilitation Area OPP Slope Tree Planting Nursery PT Merdeka Copper Gold Tbk. 8
Slide 9: Tujuh Bukit – Environment Hydroseeding Trial
Tujuh Bukit – Environment Hydroseeding Trial Spray application Boxcut Rehabilitation - Before Boxcut Rehabilitation - After Project Starting from August 2018 to March 2019 (Phase 1) Total 2018 - March 2019 = 4.35 Ha PT Merdeka Copper Gold Tbk. 9
Slide 10: Main CSR - Community Development Programs
Main CSR - Community Development Programs •Car Health Service •Free Bus School •Organic farming: dragon •Repairmen of road access •Clean Water Program •Scholarship fruit, oranges, coffee bean •Access farm and village •Health Education •Community Reading Corner •SME development roads •Provision of Ad
Slide 11: Tujuh Bukit – Security
Tujuh Bukit – Security Security Status: • Site is designated as an ‘Obvitnas (Object Vital National) Project’ • Security provided at site by both Police and Military personnel • Security at Candrian Bay LCT landing facility provided by Marines personnel • Perimeter and general site security provided
Slide 12: Tujuh Bukit – HR Manning Number
Tujuh Bukit – HR Manning Number Project & Studies contractors 11% Project & Description (s) Total % Studies employees Operations employees Operations employees 713 31% 10% 31% Operations contractors 1119 48 % Project & Studies employees 247 11 % Project & Studies contractors 249 11 % Total 2328 100%
Slide 13: Tujuh Bukit – HR Workforce Breakdown
Tujuh Bukit – HR Workforce Breakdown Workforces Breakdown 1200 4 1000 388 800 10 600 177 277 50 400 476 450 5 0 200 123 136 10 109 65 0 48 Operations Employees Operations Contractors Project & Studies Employees Project & Studies Contractors Ring 1 Ring 2 Nationals Expats Work Forces Breakdown Ring 1
Slide 14: Tujuh Bukit – Operation Work Flow
Tujuh Bukit – Operation Work Flow PT Merdeka Copper Gold Tbk. 14
Slide 15: Tujuh Bukit – Oxide Operation Snapshot
Tujuh Bukit – Oxide Operation Snapshot Mining Method Conventional Open Pit Metals Gold and Silver Mineralization Type High Sulphidation Epithermal Process Method Oxide Heap Leach Plant Capacity - Crushing & Stacking Expanding to 22,500 t/day - HLP & ADR Max. 8.2 Mtpa Recovery Gold 79% and Silver 13%
Slide 16: Oxide Operations – Simple & Low Cost
Oxide Operations – Simple & Low Cost • Conventional open pit mining from 5 low strip ratio pits. • Ore is crushed to 75 mm and agglomerated at 4 Mtpa through an Ore Preparation Plant • Crushed agglomerate is trucked to the Heap Leach Pad where it is irrigated. • Pregnant solution is pumped to the AD
Slide 17: Open Pit Mining – as at 30th April 2019
Open Pit Mining – as at 30th April 2019 Pit A Mined OPP Pit E Back fill MSP CWD Pit C Location Pit B East Mined Pit B West Mined PT Merdeka Copper Gold Tbk. 17
Slide 18: Open Pit Mining – as at 31st October 2024 end LOM
Open Pit Mining – as at 31st October 2024 end LOM Pit A Mined OPP Pit E Back fill MSP Pit C Mined CWD Pit B East Back fill Pit B West Back fill New B West WD New B East WD PT Merdeka Copper Gold Tbk. 18
Slide 19: Open Pit Mining – Pit B West (Cutback 3)
Open Pit Mining – Pit B West (Cutback 3) PT Merdeka Copper Gold Tbk. 19
Slide 20: Open Pit Mining – Pit B East (Cutback 2)
Open Pit Mining – Pit B East (Cutback 2) PT Merdeka Copper Gold Tbk. 20
Slide 21: Open Pit Mining – Pit A (Cutback 1)
Open Pit Mining – Pit A (Cutback 1) PT Merdeka Copper Gold Tbk. 21
Slide 22: Open Pit Mining – Central Waste Dump
Open Pit Mining – Central Waste Dump PT Merdeka Copper Gold Tbk. 22
Slide 23: Open Pit Mining – Sediment Control
Open Pit Mining – Sediment Control Mine Sediment Pit A Sediment Control Sump Central Sediment Pit C Sediment Sump PT Merdeka Copper Gold Tbk. Sump 23
Slide 24: Open Pit Mining – Drill & Blast
Open Pit Mining – Drill & Blast Drill & Blast Pattern Bit Diameter Old Current Pit (mm) Ore (m) Waste (m) Stemming (m) Ore (m) Waste (m) Stemming (m) All 95 3.0 X 3.5 2.0 1.90 X 2.20 2.0 – 2.3 Pits 102 2.0 2.05 X 2.35 2.0 – 2.3 PT Merdeka Copper Gold Tbk. 24 127 3.8 X 4.5 2.5 3.20 X 3.60 2.5
Slide 25: Open Pit Mining – Reconciliation 2019 YTD
Open Pit Mining – Reconciliation 2019 YTD Reconciliation - Grade Control Actual ore tonnes are 5 % below Ore Reserve (2,363 kt vs 2,481 kt) and gold grade is 9 % higher (1.43 g/t vs 1.32 g/t) resulting in additional 4 % contained gold ounces (109 koz vs 105 koz). PT Merdeka Copper Gold Tbk. 25
Slide 26: Open Pit Mining – IDS Radar Trial
Open Pit Mining – IDS Radar Trial PT Merdeka Copper Gold Tbk. 26
Slide 27: Ore Preparation Plant (crush and agglomerate)
Ore Preparation Plant (crush and agglomerate) OPP-2 Run-of-Mine Coarse Ore Bin OPP-1 (ROM) Pad Primary Jaw Crusher Screen Building Secondary Cone OPP Sampler / Crusher Cement Addition Agglomerator COS Stockpile Load Out Bay PT Merdeka Copper Gold Tbk. 27
Slide 28: Heap Leach Pad – Bay Layout
Heap Leach Pad – Bay Layout Bay 6 Bay 5 Bay 4 Bay 3 Bay 2 Bay 1 Bay 7 Bay 8 Bay 9 PT Merdeka Copper Gold Tbk. 28
Slide 29: Heap Leach Pad – Construction Stages
Heap Leach Pad – Construction Stages HL Stage 4 HL Stage 3 HL Stage 2 HL Stage 1 PT Merdeka Copper Gold Tbk. 29
Slide 30: Heap Leach Pad – Solution Flow
Heap Leach Pad – Solution Flow LLDPE Booster Pumps Liner & Station Access Ramp Drain Coils BAY 2 BAY 1 BAY 5A BAY 4 BAY 3 Lift 5 BAY 5B Lift 4 F2 Gravel Clay on top of Lift 3 under- liner BAY 6 Lift 2 liner Lift 1 BAY 7 BAY 8 ILS Pond PLS Pond BAY 9 ISWP SWP BLS / ILS (High CN / Low Au) On-Flow PT M
Slide 31: Heap Leach Pad – Stacking
Heap Leach Pad – Stacking PTD: 10.2 Mt @ 1.75 g/t Au and 11.10 g/t Ag Lift 5 Lift 4 Lift 4 Lift 3 Lift 3 Lift 2 Lift 1 Lift 2 Lift 1 PT Merdeka Copper Gold Tbk. 31
Slide 32: ADR Processing Plant
ADR Processing Plant Reagent Mixing Desorption Circuit Clarifier & Gold Refinery (Recovery) [ Au off carbon ] Dewatering Area [ Au electrowinning & smelting ] Reagent Storage Mercury Scrubber Site Assay Laboratory - Intertek Process Water Adsorption Circuit (12 x Detoxification Circuit carbon vessel
Slide 33: ADR Processing Plant – Leach Recovery Gold
ADR Processing Plant – Leach Recovery Gold KCAA Leach Recovery Model tracking closely to Actual and Model Prediction reconciled to end April 2019. PT Merdeka Copper Gold Tbk. 33
Slide 34: ADR Processing Plant – Leach Recovery %
ADR Processing Plant – Leach Recovery % Indicated recovery tracking closely to model at 70% vs 72% extraction reconciled to end April 2019. PT Merdeka Copper Gold Tbk. 34
Slide 35: Operational Performance
Operational Performance Unit 2017 Actual 2018 Actual Open Pit Mining Ore Mined M Tonnes 3.3 5.3 Waste Mined M Tonnes 4.1 9.4 Mine Grade Au g/t 2.11 1.53 Contained Metal Au oz 224,784 261,140 Heap Leach Production Ore Crushed and Stacked M Tonnes 3.2 4.9 Grade Stacked Au g/t 2.16 1.58 Recovered Gold
Slide 36: Production, Cost and Capital Guidance
Production, Cost and Capital Guidance 2019 Guidance Gold Production 180,000 to 200,000 ounces Cash Costs US$ 425 to US$ 500 AISC US$ 650 to US$ 725 Sustaining Capital US$ 22 to US$ 25 million Growth Capital US$ 50 to US$ 53 million Resource definition and discovery US$ 1 million PT Merdeka Copper Go
Slide 37: LOM Q2 Forecast – Total Tonnes Mined and Gold Produced
LOM Q2 Forecast – Total Tonnes Mined and Gold Produced (stacked area chart) PT Merdeka Copper Gold Tbk. 37
Slide 38: LOM Production Profile
LOM Production Profile Gold Production 2017-18 Production 250 - Production capacity of 4 Mtpa - Heap Leach total capacity of 36 Mt - Mining of higher grade pits 200 - ADR processing flow rate 460 m3/h 2019-21 - Expansion 150 - Production capacity increases from 4 Mtpa to maximum rate 8.2 Mtpa - Heap
Slide 39: Oxide Expansion Project – Completion in Q2 2019
Oxide Expansion Project – Completion in Q2 2019 The Company has undertaken construction activities to increase crushing and agglomerating capacity from 4 Mtpa to 8 Mtpa during 2018 and 2019. This did not disrupt existing operations. The table summarises life of mine key statistics: Based on Expanded
Slide 40: Summary – Significant Progress!
5. Summary – Significant Progress! 1. Construction commenced in 2015 for total capex $131 million, constructed on budget & dry commissioned February 2017. 2. Oxide mining commenced in November 2016 with wet commissioning and first gold March 2017. 3. Ontrack to meet 2019 guidance of 180-200 koz at A