Pt Archi Indonesia Tbk · IDX:ARCI
Pt Archi Indonesia Tbk — Investor Presentation (April 2022)
36 slides from Pt Archi Indonesia Tbk's investor presentation, Apr 4, 2022
Slide 1: PT Archi Indonesia Tbk Investor Presentation Update – FY21
PT Archi Indonesia Tbk (IDX: ARCI) Investor Presentation Update – FY21 Published Date: 04th April, 2022
Slide 2: Disclaimer
Disclaimer IMPORTANT: You must read the following before continuing. In accessing the presentation (this “presentation”), you agree to be bound by the following terms and conditions. The materials in this presentation have been prepared by PT Archi Indonesia Tbk (the “Company” or “Archi”) and are ge
Slide 3: Archi at a Glance
Archi at a Glance PT Archi Indonesia Tbk (“Archi”) is the 2nd largest(1) pure-play gold producer in Southeast Asia US$164mm of EBITDA(2) 3.9Moz of Gold Ore Reserves for 2021, with a strong and 5.5Moz of mineral resources as of 2020 (JORC) EBITDA Margin of 47.3% US$346mm of Significant Revenue Expans
Slide 4: Asset Overview
Asset Overview Asset / Project Toka Tindung Gold Mine Mineral Resources 5.5 Moz (as of end 2020) PT Meares Soputan Mining (“PT MSM”) & PT Ore Reserves 3.9 Moz (as of end 2020) Operating Companies Tambang Tondano Nusajaya (“PT TTN”); both are wholly-owned subsidiaries of PT Archi Indonesia Tbk Contra
Slide 5: Key Highlights – FY 2021
Key Highlights – FY 2021 Ore processed reached 3.64 mn tons, 6% higher compared to 3.44 mn tons in the previous year. Average gold head grade, 1 however, lower from 2.12 g/t to 1.93 g/t. Consequently, gold production was 6% lower at 194.4 koz compared to 206.8 koz in previous year. Consolidated reve
Slide 6: Historical Operational Trend
Historical Operational Trend Waste Mined Ore Mined (‘000 tonnes) 13.5x 11.3x 10.7x 41,114 9.0x 6.4x 6.8x 5.6x 5.2x 27,417 4.4x 4.4x 3.7x 23,879 21,828 18,569 5,025 13,766 15,488 14,808 15,256 15,082 15,484 4,590 3,441 3,212 3,482 2,744 2,858 2,346 2,552 1,219 1,774 2011 2012 2013 2014 2015 2016 2017
Slide 7: Mining, Processing & Production
Mining, Processing & Production Lower gold produced mainly due to lower average gold head grade, despite higher ore processed Total material mined during the year increased significantly due to the opening of new Alaskar pit as well as higher waste removal from the early stage of mining ore in Ara
Slide 8: Exploration Updates
Exploration Updates Throughout 2021, Archi continued to intensify its exploration activities, both in the Eastern and Western Corridor, in order to accelerate the finding of new Mineral Resources and Ore Reserves. Exploration activities carried out by the Company, through its subsidiaries PT MSM a
Slide 9: Downstream Business – Mining Contractor Services
Downstream Business – Mining Contractor Services The appointment of PT GMA as one of the mining contractors in Toka Tindung Gold Mine has helped Archi reduce loading and transportation costs. Mining contractor services business was established in 2019, through 99.9%-owned holding company PT Jasa P
Slide 10: Downstream Business – Gold Minting Bar
Downstream Business – Gold Minting Bar Continuous good performance in the gold minting bar business to penetrate domestic retail market The gold minting bar business under brand name “Lotus Archi” was established in 2019, operated by 51%-owned JV Company, PT Elang Mulia Abadi Sempurna (“PT EMAS”).
Slide 11: Consolidated Profit & Loss Statement – FY 2021
Consolidated Profit & Loss Statement – FY 2021 Selected Key Items For the year ended 31st December Lower revenue and profitability as a result from lower gold In US$ million, unless stated otherwise sales volume, and higher mining and processing costs. 2021 2020 % chg Revenue 345.9 393.3 (12) Cons
Slide 12: Consolidated Statement of Financial Position – 31st December 2021
Consolidated Statement of Financial Position – 31st December 2021 Selected Key Items In US$ million, As at As at Healthy balance sheets position with low debt to equity % chg (“DER”) level unless stated otherwise 31st Dec 2021 31st Dec 2020 Cash and cash equivalents(1) 12.3 40.2 (69) Higher fixed
Slide 13: Consolidated Statement of Cash Flow – FY 2021
Consolidated Statement of Cash Flow – FY 2021 Selected Key Items For the year ended 31st December Strong liquidity to support sustainable operations and In US$ million, unless stated otherwise capital expenditures requirements 2021 2020 chg Net cash flows provided from operating activities 124.2 155
Slide 14: AISC and Cost Reduction Initiatives
AISC and Cost Reduction Initiatives All-in Sustaining Costs(1) in 2021 was higher at US$1,260/oz due to higher mining costs and sustained capex In 2021, higher mining costs was driven by higher total material mined and increase in stripping ratio as a result of early stage of mining ore in Araren
Slide 15: Debt Repayment Schedule
Debt Repayment Schedule Existing Debt Outstanding Balance Tenor Maturity Interest Rate Covenants (as at 31st Dec 2021) (Years) Date Total debt/EBITDA < 3.0x Conventional Facility and MMQ DSCR > 1.1x US$273mn LIBOR / JIBOR + 4.00%(1) 5.0 2025 (excl. amortized costs) Project life coverage ratio(
Slide 16: Latest Conditions on Suspended Pit
Latest Conditions on Suspended Pit On early January 2022, there was an occurrence in one of TTN’s pit. Heavy rainfall has resulted in land subsidence, road damage and river body damage. Simultaneously, the pit wall was damaged, resulting in river water flowing into the pit. Currently, mining act
Slide 17: Latest Conditions on Suspended Pit
Latest Conditions on Suspended Pit Emergency Task Force team has been established to lead the remedial action plan for the suspended Pit Emergency Task Force team to lead the necessary recovery actions, including: • In-Pit dewatering Water Level : – 24.4 RLm • Araren & Kayuwale river pumping and d
Slide 18: Business Prospects
Business Prospects “We believe that all the strategic steps we had done during 2021 will definitely support the sustainable growth of our business in the upcoming years.” [Ken Crichton – President Director] Build upon the current situation of natural disaster happened in January this year, the Com
Slide 19: Appendix
N \\ Bronead Append Ix
Slide 20: Key Investment Highlights
Key Investment Highlights 1 The 2nd Largest Pure-play Gold Producer in Southeast Asia, with more than 10 years of Proven Operation Track Record 2 Strong and Proven Exploration Track Record Supports Significant Development Potential and Exploration Upside 3 Structurally Low Cost Base with Proven Trac
Slide 21: Mineral Resources & Ore Reserves
Mineral Resources & Ore Reserves Resources and Reserves(1): 3.9 Moz gold reserves and 5.5 Moz gold resources as of 31 December 2020 Tonnage Gold Grade Contained Gold Silver Grade Contained Silver Category (Mt) (g/t) (Koz) (g/t) (Koz) Proven 18.2 1.1 667 2.6 1,521 Reserves Probable 80.1 1.3 3,218 2.6
Slide 22: Growth Strategy – Exploration
Growth Strategy – Exploration Exploration Low Range High Range Targets Tonnage (Mt) Grade (g/t Au) Ounces (Koz) Tonnage (Mt) Grade (g/t Au) Ounces (Koz) Near mine 40 1.5 2,000 54 2.7 4,800 Talawaan 23 2.9 2,100 36 3.6 4,200 Greenfields 36 1.1 1,200 83 1.6 4,000 TOTAL 100 1.7 5,300 173 2.4 13,000 E
Slide 23: Growth Strategy – Mill Processing Capacity
Growth Strategy – Mill Processing Capacity Subject to the discoveries of new Mineral Resources and Ore Reserves, to upgrade and expand the mill capacity to enable higher processing throughput to become a centralized plant to process ores from both the Eastern Corridor and the Western Corridor. 2021
Slide 24: Business Overview
Business Overview Exploration Mining Processing Refining Processing Plant Mine Drill & Planning Blast Grade Load & Control Haul Gold Dore Archi’s in-house team undertakes a range of Mining at site is undertaken by Process utilizes a standard exploration activities within the mining contractors using
Slide 25: Strategy to Mitigate Covid-19 Pandemic
Strategy to Mitigate Covid-19 Pandemic Archi has adopted anti-pandemic measures and implemented health and safety guidelines for all its employees to mitigate the impact of COVID-19 on business continuity Impact of COVID-19 on Archi’s Operations Measures to Mitigate Impact of COVID-19 The COVID-19
Slide 26: Key Milestones
Key Milestones Rajawali Group privatized Archipelago Resources PLC and delisted Archipelago Engaged an associate company, PT Geopersada Mulia Abadi (GMA), as the Listed on Indonesia Resources PLC from the Alternative Investment Market of the London Stock Exchange Plc new mining contractor supp
Slide 27: Shareholding Structure
Shareholding Structure IPO Completion on 99.99% Public 28th June 2021 84.99% PT Wijaya Anugrah Cemerlang 15.00% Archipelago 100.00% 0.01% Resources PTE LTD 0.50% 0.50% 99.50% 99.50% 99.96% 99.99% 51.00% PT Meares PT Tambang PT Jasa PT Elang Mulia PT Karya Kreasi Soputan Mining Tondano Nusajaya Perta
Slide 28: Board Members
Board Members Board of Commissioners Rizki Indra Kusuma Abed Nego Ali Abbas Badre Alam President Commissioner Commissioner Commissioner Appointed as Commissioner in 2020 Appointed as Commissioner in November 2016 Appointed as Commissioner in 2021 Currently Managing Director Legal of PT Rajaw
Slide 29: ESG Commitment
ESG Commitment Archi will make continuous efforts on sustainable operations and strive to maintain its position as an ESG leader, as recognized by various industry bodies and the Indonesian government. Soil and Mine Management Community Relationship Progressive reclamation of mine sites Maintain
Slide 30: ESG Practice Assessment
ESG Practice Assessment ESG Assessment Results at Toka Tindung Gold Mine (1) On January 2021, Archi engaged voluntarily with PT Lorax Indonesia , an independent environmental consultant company, to assess ESG practive in Toka Tindung Gold Mine. The assessment results came out that Toka Tindung G
Slide 31: Occupational, Health & Safety Measures
Occupational, Health & Safety Measures Improved safety & risk controls helping to reduce higher potential injuries to the workforce Health & Safety Statistics 2018 2019 2020 2021 Incident Frequency Rate 19.37 17.33 15.69 13.11 Lost Time Injury (“LTI”) 1 0 3 0 LTI Frequency Rate 0.14 0 0.57 0 Medical
Slide 32: Corporate Social Responsibilities
Corporate Social Responsibilities Social & Cultural Biodiversity conservation Forest conservation Basic foods donation in response to 1,000 Days of Life program to support babies’ Worship facilities construction Covid-19 pandemic health Health Education Health post centre Scholarship educa
Slide 33: Share Price Performance & Liquidity
Share Price Performance & Liquidity Share Price Performance (IPO – 25th March 2022) Rp / share Mn shares 800 400 750 350 700 300 650 250 600 200 550 150 500 100 450 50 400 - Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Trading Volume Close Price Market Capitalization & Tradi
Slide 34: Equity Research Analysts Coverage
Equity Research Analysts Coverage Name of Institution Name of Analysts Contact Number Email Address BNI Sekuritas Firman Hidayat +62 21 2554 2946 firman.Hidayat@bnisekuritas.co.id Citigroup Sekuritas Justian Rama +62 21 2924 9222 justian.rama@citi.com Henan Putihrai Sekuritas Robertus Hardy +62 21 5
Slide 35: JORC Competent Person’s Statement
JORC Competent Person’s Statement The information in this report that relates to Exploration Targets, Exploration Results and Mineral Resources is based on information compiled by Mr. Shawn Crispin, a Competent Person who is a Fellow and Chartered Professional of The Australasian Institute of Mining
Slide 36: Thank You
Thank You For further information, please contact: corsec@archimining.com ; or visit : www.archiindonesia.com 36
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