Pt Merdeka Copper Gold Tbk · IDX:MDKA
Pt Merdeka Copper Gold Tbk — Investor Presentation (August 2020)
34 slides from Pt Merdeka Copper Gold Tbk's investor presentation, August 2020
Slide 1: Indonesia’s Leading Copper Gold Champion
Indonesia’s Leading Copper Gold Champion Investor Presentation August 2020
Slide 2: Table of Contents
Table of Contents 1. Introduction 2. Producing Assets and Development Projects 3. Appendix 2
Slide 3: 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 4: Introduction
Introduction Z MERDEKA@# COPPER GOLD
Slide 5: Merdeka Introduction
Merdeka Introduction MDKA today consists of five main assets which, in order of management’s assessment of future value, are as follows: 1. Tujuh Bukit Copper/Gold Project (“TB Copper Project”) 5 Main Assets 2. Pani Joint Venture (“Pani JV Project”) – new expansion project 3. Wetar / Morowali Acid I
Slide 6: Indonesia: Right Geological Address
Indonesia: Right Geological Address Indonesia continues to be a significant player in the global mining industry, with significant production of coal, copper, gold, tin and nickel including leading gold and copper assets such as Grasberg, Tujuh Bukit, Batu Hijau and Martabe Toka Tindung Gosowong Gra
Slide 7: Strong and Reliable Indonesian Shareholders
Strong and Reliable Indonesian Shareholders Existing Shareholding Structure Valuation: US$10.0b EV: US$3.5b1 EV: US$3.3b1 ~23% ~23% ~9% The shareholders collectively have rich experience in leading and growing businesses in Indonesia, ranging from 1 Track Record in dynamic tech platforms (Gojek) to
Slide 8: Sound Financial Position
Sound Financial Position Revenue (US$m) EBITDA (US$m) Hedging 402 228 H2- 37,004 oz at US$1,453 / oz 294 2020 158 Gold 2021 3,000 oz at US$1,775 / oz Copper 2020 Nil 2018 2019 2018 2019 Debt Comments US$200m syndicated facility of 8 international banks • Strong cash flow generation with Closed O
Slide 9: Share Price and Liquidity
Share Price and Liquidity Current Capitalization MDKA ShareChart PriceTitle Performance 2,000 450000000 Share Price (IDR)1 1,810 CAGR 1,800 +88% 400000000 1,600 350000000 Share Price (IDR) Shares Outstanding (m) 21,898 1,400 300000000 1,200 250000000 Market Cap (IDR) IDR39.6t 1,000 200000000 800 Mar
Slide 10: Management with Significant Industry Experience
Management with Significant Industry Experience The management team comprises a group of individuals with rich experience within the industry and within their individual business functions Experience More than 30 years of experience in mining sector including exploration, feasibility studies, perm
Slide 11: Indonesia’s Leading New Mining Company
Indonesia’s Leading New Mining Company Actual Estimate 2017 2018 2019 2020 175,000 – Operations 223,000 oz 195,000 oz 167,000 oz Wetar 141,468 oz Strategic 17,000 t 17,000 t Review Gold Copper Gold Copper Gold Copper Gold Copper Started Drilling TB Copper Completed Complete PFS Completed Started Dec
Slide 12: Producing Assets and Development Projects
Producing Assets and Development Projects
Slide 13: TB Gold Mine
TB Gold Mine Production Information Operational & Financial Performance 2018 2019 H1-2020 Mining Method Conventional Open Pit Unit Actual Actual Actual Open Pit Mining Metals Gold and Silver Ore Mined M Tonnes 5.3 7.4 4.8 Mineralisation Type High Sulphidation Epithermal Waste Mined M Tonnes 9.4 8.4
Slide 14: TB Copper Project Leading Underground Copper/Gold Deposit
TB Copper Project Leading Underground Copper/Gold Deposit Perspective View: Upper High Grade Zone (“UHGZ”) and Initial Mining Area (“IMA”) Comments • The 1,890-meter long exploration decline was successfully completed in June 2020 • Purple lines extending from the decline denote drilling results rec
Slide 15: TB Copper Project Leading Underground Copper/Gold Deposit
TB Copper Project Leading Underground Copper/Gold Deposit Plan View 1: Drilling Sections A to E Comments • Drilling in the IMA is ongoing, with a further 16,000 meters planned for completion in 2020 • Mineralisation tested in the Initial Mining Area (IMA) has either met or exceeded expectations. Thi
Slide 16: TB Copper/Gold Project Leading Mineral Resource
TB Copper/Gold Project Leading Mineral Resource Significant Porphyry Deposits 0.90% Bubble Size = Resource (Moz AuEq) Grasberg Wafi-Golpu 0.80% Lookout Hill Tujuh Bukit UHGZ 0.70% Oyu Tolgoi First 20+ years 0.60% Resource Copper Grade (% Cu) Northparkes Los Volcanes Tujuh Bukit Frieda River Undergro
Slide 17: TB Near Mine Exploration
TB Near Mine Exploration Open Pit Targets Could De-Risk Copper Project Ramp Up Open Pit Mineralisation Targets Comments PT DSI Salakan Porphyry Prospect IUP Exploration • Historical drilling including SDN-12-01: 604m @ 0.22% Cu • Exploration to re-commence in 2021 Lompongan Porphyry Prospect • Cu-Au
Slide 18: Wetar Copper Mine
Wetar Copper Mine Production Information Operational & Financial Performance Mining Method Conventional Open Pit 2018 2019 H1-2020 Unit Actual Actual Actual Metals Copper Open Pit Mining Mineralisation Type Volcanogenic Massive Sulphide (“VMS”) Ore Mined M Tonnes 1.6 2.3 0.2 Waste Mined M Tonnes 1.4
Slide 19: Wetar – Significant Potential to Extend Mine Life
Wetar – Significant Potential to Extend Mine Life Prospective Geology • Resources at Wetar are Volcanogenic Massive Sulfide (VMS) deposits • The deposits generally appear in Partolang – Resource Defined clusters and as such it would not be Lerokis Pit surprising to discover more resources over time
Slide 20: Wetar Strategic Review
Wetar Strategic Review Copper production at Wetar will remain low while management’s strategic review is completed and plan implemented in H2 2020 • The Wetar resource has delivered higher tonnes Wetar Copper Production (tonnes) and higher grade than forecast since commencement of mining • Despite a
Slide 21: AIM Project Overview
AIM Project Overview Initial plant to produce 1mtpa of sulphuric acid but expected to increase and demand could be 5 mtpa between IMIP and other sites Wetar IMIP (Maluku Province) (Morowali, Central Sulawesi Province) AIM Joint Venture (60% Merdeka) Merdeka Ship 700km to Pyrite Calcine Process Feeds
Slide 22: Pani – Commencement of Step-Out Drilling
Pani – Commencement of Step-Out Drilling Overhead & Cross Sectional Illustration of Planned Step-Out Comments Drilling Between PANI COW & PANI IUP • JV with J Resources to develop a combined project. Signed and expected to close H2 2020, pending regulatory and J Resources’ lenders’ approvals – Merde
Slide 23: Appendix
Appendix ‒ Key Financial Figures ‒ TB Copper Project Latest Drill Results ‒ Environmental, Safety and Social (ESS) ‒ Merdeka Mining Servis (MMS) ‒ Pani JV Project ‒ Key Shareholders ‒ Trading Liquidity ‒ Gold and Copper Price Charts
Slide 24: Key Financial Figures 2016 – Q1 2020
Key Financial Figures 2016 – Q1 2020 In US$m 2016 2017 2018 2019 Revenue 0 129 294 402 P&L EBITDA (6) 99 158 228 Net Profit (3) 43 58 69 Cash 43 35 14 50 Other current assets 5 59 141 155 Fixed assets 240 268 593 647 Other non-current assets 17 9 50 100 Total Assets 304 371 798 951 Borrowings – curr
Slide 25: TB Copper Project Latest Drill Results
TB Copper Project Latest Drill Results UHGZ Drilling Results Comments From To Interval • The most recent 8 holes of Hole ID Cu % Au g/t the current infill drilling (metres) (metres) (metres) program have all returned UHGZ-20-011 576 784.8 208.8 0.5 0.5 intercepts in line with or 298 779.6 481.6 0.7
Slide 26: Merdeka Environmental, Safety and Social (ESS) Performance 2019
Merdeka Environmental, Safety and Social (ESS) Performance 2019 Beyond operational and financial success, Merdeka places strong emphasis on ESS initiatives to ensure that the company has a positive influence on their stakeholders and minimize negative impact, if any Safety at Work Community Developm
Slide 27: Merdeka Mining Servis (MMS)
Merdeka Mining Servis (MMS) Key Comments Select MMS Experience • Construction and contracting arm of Merdeka, About MMS responsible for all Merdeka development projects # Project Location Client and servicing the wider shareholder group Tujuh Bukit Gold • Led by Peter Scanlon, who set up MMS in 2015
Slide 28: Pani JV Project Ownership Structure
Pani JV Project Ownership Structure Lion Selection PSAB 66.7% 33.3% 99.99% Pani JRN (PBJ) 60% 40% PBT 99.9% 99.9% KUD PEG 49% 0.001% 51% PETS GSM IUP COW 28
Slide 29: Indonesian Morowali Industrial Park (IMIP) Substantial Facility
Indonesian Morowali Industrial Park (IMIP) Substantial Facility Location and Size Comments • Tsingshan owns 66.25% of IMIP • Development started in 2014. Tsingshan’s stated objective at the time was to create the world’s largest fully integrated stainless steel facility • This has now been achieved,
Slide 30: Key Shareholders
Key Shareholders With a Track Record and Proven Financing Capabilities Provident, Saratoga and Thohir Group have a history of co-investment over many years with a distinguished track record in building value as well as attracting blue chip international institutional investors and high- quality bank
Slide 31: Merdeka is in the Top 10 of the Jakarta Composite Index by Trading Volume
Merdeka is in the Top 10 of the Jakarta Composite Index (JCI) by Trading Volume With IDR15.3t total turnover, Merdeka is among the top 10 of JCI movers YTD to July 2020 Top 10 JCI movers in terms of turnover as of YTD to July 20201 (IDRt) 700,000,000 600,000,000 500,000,000 400,000,000 300,000,000 2
Slide 32: Gold Price Chart Past 5 Years (US$/oz)
Gold Price Chart Past 5 Years (US$/oz) 2,000 1,900 1,800 1,700 1,600 1,500 1,400 1,300 1,200 1,100 1,000 7/31/15 1/31/16 7/31/16 1/31/17 7/31/17 1/31/18 7/31/18 1/31/19 7/31/19 1/31/20 7/31/20 Source: Bloomberg 32
Slide 33: Copper Price Chart Past 5 Years (US$/t)
Copper Price Chart Past 5 Years (US$/t) 8,000 7,500 7,000 6,500 6,000 5,500 5,000 4,500 4,000 7/30/15 1/30/16 7/30/16 1/30/17 7/30/17 1/30/18 7/30/18 1/30/19 7/30/19 1/30/20 7/30/20 Source: Bloomberg 33
Slide 34: Competent Person’s Statement
Competent Person’s Statement The Annual Mineral Resources and Ore Reserves Statement and Explanatory Notes have been compiled by Mr Z Casley. Mr Casley is the Executive General Manager Geoscience, a full-time employee of Merdeka Copper Gold Tbk. He is a Fellow of The Australasian Institute of Mining
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