Pt Archi Indonesia Tbk · IDX:ARCI
Pt Archi Indonesia Tbk — 9M 2021 Earnings Presentation
33 slides from Pt Archi Indonesia Tbk's earnings presentation, Nov 5, 2021
Slide 1: PT Archi Indonesia Tbk Investor Presentation Update – 9M21
PT Archi Indonesia Tbk Investor Presentation Update – 9M21 Published Date: 05 Nov 2021
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$240mm of EBITDA 3.9Moz of Gold Ore Reserves for 2020, with a strong EBITDA and 5.5Moz of mineral resources as of 2020 Margin of 61.1% US$393mm of Significant Revenue Expansion Upside
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 – 9M 2021
Key Highlights – 9M 2021 (30th September 2021) Ore processed reached 2.63 mn tons, 4% higher compared to 2.54 mn tons in the same period last year. Average gold head 1 grade of ore processed decreased from 2.17 g/t to 1.81 g/t. Consequently, gold production was 15% lower at 132.0 koz compared to 155
Slide 6: Quick Updates on Q3 2021
Quick Updates on Q3 2021 Second wave of Covid-19 cases significantly impacted our third quarter operational performances Completion of Araren Pit stage 5 transition Transition of Araren Pit from stage 3 to stage 5 has been 600 Q3 2021 new Covid-19 cases: 732 cases 535 completed, and has started pr
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 9M 2021 period increased significantly due to higher waste removal from the higher grade Araren Pit transitioning from stage 3 to the new stage
Slide 8: Exploration Updates
Exploration Updates During 9M 2021, the Company 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. Current drilling activities continues in the Bima and Arjuna deposits in the We
Slide 9: Downstream Business
Downstream Business Continuous good performance in the gold minting bar business to penetrate domestic retail market In 2019, Archi has started to penetrate downstream business by establishing a 51%-owned JV company, PT Elang Mulia Abadi Sempurna (“EMAS”), which its main business to produce and se
Slide 10: Consolidated Profit & Loss Statement – 9M 2021
Consolidated Profit & Loss Statement – 9M 2021 Selected Key Items In US$ million, For the year ended 30th September Lower revenue and profitability as results from lower gold unless stated otherwise 2021 2020 % chg sales volume, despite stable average gold selling price Revenue 236.5 275.3 (14) Ar
Slide 11: Consolidated Statement of Financial Position – 30th September 2021
Consolidated Statement of Financial Position – 30th September 2021 Selected Key Items In US$ million, As at As at Healthy balance sheets position with low debt to equity % chg unless stated otherwise 30th Sep 2021 31st Dec 2020 (“DER”) level Cash and cash equivalents(1) 21.4 40.2 (47) Higher fixed
Slide 12: Consolidated Statement of Cash Flow – 9M 2021
Consolidated Statement of Cash Flow – 9M 2021 Selected Key Items In US$ million, For the year ended 30th September Strong liquidity to support sustainable operations and unless stated otherwise 2021 2020 chg capital expenditures requirements Net cash flows provided from operating activities 114.2 89
Slide 13: AISC and Cost Reduction Initiatives
AISC and Cost Reduction Initiatives All-in Sustaining Costs(1) in 9M 2021 increased to US$1,049 / oz due to higher absolute mining costs In 9M 2021, total absolute mining costs was higher due to higher stripping ratio resulting from pre-stripping of Araren stage 5 Pit. However, mining costs per to
Slide 14: Debt Repayment Schedule
Debt Repayment Schedule Existing Debt Outstanding Balance Tenor Maturity Interest Rate Covenants (as at 30th Sep 2021) (Years) Date Total debt/EBITDA < 3.0x Conventional Facility and MMQ DSCR > 1.1x US$290mn LIBOR / JIBOR + 4.00%(1) 5.0 2025 (excl. amortized costs) Project life coverage ratio(
Slide 15: Appendix
N \\ Bronead Appendix
Slide 16: Key Investment Highlights
Key Investment Highlights 1 The 2nd Largest Pure-play Gold Producer in Southeast Asia, with 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 Track Record o
Slide 17: 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 18: Latest Drilling Results
Latest Drilling Results High grade gold grades intercepts continue from recent exploration drilling at the Bima-Arjuna deposits in the Western Corridor A major drilling program has been underway since the latest JORC report was published in December 2020. Five diamond drill rigs and one reverse
Slide 19: 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 20: Growth Strategy – Processing Plant
Growth Strategy – Processing Plant Subject to the discoveries of new Mineral Resources and Ore Reserves, to upgrade and expand the Processing Plant to enable higher processing throughput to become a centralized plant to process ores from both the Eastern Corridor and the Western Corridor. 2021 - 202
Slide 21: 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 under the mining contractors using
Slide 22: 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 23: Key Milestones
Key Milestones Rajawali Group privatized Archipelago Resources PLC and delisted Archipelago Engaged an associate company, PT Geopersada Mulia Abadi (GMA), as the new Resources PLC from the Alternative Investment Market of the London Stock Exchange Plc mining contractor supported with a larger mi
Slide 24: Shareholding Structure
Shareholding Structure 99.99% Public 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 Pertambangan Abadi Sempurna(3) Mulia(2
Slide 25: Key Management
Key Management 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 Raja
Slide 26: 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 27: 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 28: 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 9M 2021 Incident Frequency Rate 19.37 17.33 15.69 14.29 Lost Time Injury (“LTI”) 1 0 3 0 LTI Frequency Rate 0.14 0 0.57 0 Medi
Slide 29: 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 30: Share Price Performance & Liquidity
Share Price Performance & Liquidity Year-to-Date Share Price Performance Rp / share Mn shares 1,000 400 350 900 300 800 250 700 200 150 600 100 500 50 400 - 28-Jun 5-Jul 12-Jul 19-Jul 26-Jul 2-Aug 9-Aug 16-Aug 23-Aug 30-Aug 6-Sep 13-Sep 20-Sep 27-Sep 4-Oct 11-Oct 18-Oct 25-Oct Trading Volume Close P
Slide 31: 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 32: 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 33: Thank You
Thank You For further information, please contact: corsec@archimining.com ; or visit : www.archiindonesia.com 33