Pt Amman Mineral Internasional Tbk · IDX:AMMN
Pt Amman Mineral Internasional Tbk — Q3 2023 Earnings Presentation
35 slides from Pt Amman Mineral Internasional Tbk's earnings presentation, Oct 31, 2023
Slide 1: PT Amman Mineral Internasional Tbk Third Quarter 2023 Results
PT AMMAN MINERAL INTERNASIONAL TBK (AMMN) Third Quarter 2023 Results 31 October 2023
Slide 2: Disclaimer
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Slide 3: Agenda
AGENDA Q3/2023 Highlights Q3/2023 Operations Update Q3/2023 Project Expansion Update Q3/2023 Regulatory Update Q3/2023 Financial Update ESG Update Guidance & Outlook 3
Slide 4: Production and sales in Q3/2023 back on track after challenging H1/2023
Q3/2023 HIGHLIGHTS: PRODUCTION AND SALES IN Q3/2023 WERE BACK ON TRACK AFTER CHALLENGING H1/2023 Focused on operational efficiency and productivity • In August and September 2023, mining operations broke historical records of monthly materials mined (including waste and ore). • Mining operations hit
Slide 5: Construction of expansion projects continued to progress on schedule
Q3/2023 HIGHLIGHTS: CONSTRUCTION OF EXPANSION PROJECTS CONTINUED TO PROGRESS ON SCHEDULE Accelerated several aspects of expansion projects to achieve FY2023 guidance • Capital expenditure for expansion projects for 9M/2023 was in line with FY2023 budget plan • Copper smelter construction progress pe
Slide 6: Stronger commitment towards more sustainable operations
Q3/2023 HIGHLIGHTS: STRONGER COMMITMENT TOWARDS MORE SUSTAINABLE OPERATIONS Embarked on its journey towards more sustainable operations • Released first Sustainability Report for 2022 • Signed a Letter of Commitment (LoC) with The Copper Mark • Received two Subroto Awards1: 1. Innovation in providin
Slide 7: Agenda
AGENDA Q3/2023 Highlights Q3/2023 Operations Update Q3/2023 Project Expansion Update Q3/2023 Regulatory Update Q3/2023 Financial Update ESG Update Guidance & Outlook 7
Slide 8: Mining operations back on track, hitting fresh ore in July 2023
Q3/2023 OPERATIONS UPDATE: MINING OPERATIONS IN Q3/2023 WERE BACK ON TRACK, HITTING FRESH ORE IN JULY 2023 Ex-pit materials mined by type (per quarter in 2023) Volume (kTon) 67,760 72,362 87,987 Monthly Materials Mined (including waste and ore) SEPTEMBER 2023 100,000 Monthly Expit Record: 90,000 AUG
Slide 9: Concentrate and metals production back on track to achieve FY2023 target
Q3/2023 OPERATIONS UPDATE: CONCENTRATE AND METALS PRODUCTION WERE BACK ON TRACK TO ACHIEVE FY2023 TARGET Mill throughput by feed (per 9 months) Concentrate production (per 9 months) Volume (Mt) Volume (dmt) 35 23 24 20 31 26 Scheduled 700,000 total plant 573,423 30 600,000 1 shutdown 25 4 (TPS) was
Slide 10: Quarterly production
Q3/2023 OPERATIONS UPDATE: QUARTERLY PRODUCTION Mill throughput by feed (per quarter in 2023) Concentrate production (per quarter in 2023) Volume (Mt) Volume (dmt) 10 160,000 - - 139,360 8 140,000 Scheduled 120,000 110,623 6 4 total plant 100,000 94,258 • There was a minor shutdown 9 9 4 was done in
Slide 11: Agenda
AGENDA Q3/2023 Highlights Q3/2023 Operations Update Q3/2023 Project Expansion Update Q3/2023 Regulatory Update Q3/2023 Financial Update ESG Update Guidance & Outlook 11
Slide 12: Smelter progress in Q3/2023 surpassed the target agreed by the government
Q3/2023 PROJECT EXPANSION UPDATE: SMELTER PROGRESS IN • • Target for mechanical completion in May 20242 Around 4-5 months commissioning period to produce the first refined metals Q3/2023 SURPASSED THE TARGET AGREED BY THE INDONESIAN GOVERNMENT Smelter feed: KEY FEATURES OF THE SMELTER Smelter output
Slide 13: Smelter progress in Q3/2023 surpassed the target agreed by the government
Q3/2023 PROJECT EXPANSION UPDATE: SMELTER PROGRESS IN Q3/2023 SURPASSED THE TARGET AGREED BY THE GOVERMENT FLASH CONVERTING FURNACE AND FLASH SMELTING FURNACE OFFSHORE FABRICATION STEAM DRYER - ANODE PREPARATION MACHINE HEAT EXCHANGERS (ACID Kumera Corporation, Finland - METSO, Finland PLANT) - MECS
Slide 14: Processing plant expansion on track for mechanical completion in Q1/2025
Q3/2023 PROJECT EXPANSION UPDATE: PROCESSING PLANT EXPANSION IS ON TRACK TO ACHIEVE MECHANICAL COMPLETION IN Q1/2025 • Processing plant capacity is being expanded from 35 – 42 Mt per annum to 85 Mt per annum to process additional ore supply from Phase 8 and the future Elang mine • Due to Batu Hijau
Slide 15: CCPP and LNG storage and regasification facilities commissioned in stages
Q3/2023 PROJECT EXPANSION UPDATE: CCPP AND ASSOCIATED LNG STORAGE AND REGASIFICATION FACILITIES WILL BE COMMISSIONED IN STAGES • A new Combined Cycle Power Plant (CCPP) is being built with 450 MW capacity. The CCPP will be fueled by natural gas from the regassification of LNG. • The CCPP is planned
Slide 16: Agenda
AGENDA Q3/2023 Highlights Q3/2023 Operations Update Q3/2023 Project Expansion Update Q3/2023 Regulatory Update Q3/2023 Financial Update ESG Update Guidance & Outlook 16
Slide 17: Ensured compliance to obligations under new government regulations
Q3/2023 REGULATORY UPDATE: ENSURED COMPLIANCE TO VARIOUS OBLIGATIONS UNDER NEW GOVERNMENT REGULATIONS Obligation to set aside 30% of export earnings each month in a special account for a minimum of 3 months (Devisa Hasil Ekspor Sumber Daya Alam – DHE SDA) • Based on Government Regulation No. 36/2023
Slide 18: Ensured compliance to obligations under new government regulations
Q3/2023 REGULATORY UPDATE: ENSURED COMPLIANCE TO VARIOUS OBLIGATIONS UNDER NEW GOVERNMENT REGULATIONS Increase of Export Duty to 10% (compared to 0% under the previous regulations) • Per the Ministry of Finance Decree No. 71/2023, AMNT is obliged to pay an export duty rate for copper concentrate of
Slide 19: Agenda
AGENDA Q3/2023 Highlights Q3/2023 Operations Update Q3/2023 Project Expansion Update Q3/2023 Regulatory Update Q3/2023 Financial Update ESG Update Guidance & Outlook 19
Slide 20: Maintained financial resilience while ensuring compliance with new regulations
Q3/2023 FINANCIAL UPDATE: MAINTAINED FINANCIAL RESILIENCE WHILE ENSURING COMPLIANCE TO VARIOUS OBLIGATIONS DUE TO NEW GOVERNMENT REGULATIONS • Sales performance in Q3/2023 got back on track upon receiving the export permit on 24 July 2023, where we accelerated the shipment of concentrate in Q3/2023
Slide 21: Sales in Q3/2023 back on track after challenging H1/2023
Q3/2023 FINANCIAL UPDATE: SALES IN Q3/2023 WERE BACK ON TRACK AFTER CHALLENGING H1/2023 Q3 Y-O-Y Concentrate Copper Gold Production Sales1 Production Sales1 Selling Price (Net)2 Production Sales1 Selling Price (Net)2 110,623 180,698 66 99 $3.59 88 114 $1,887 Metric tons Metric tons Mlbs Mlbs per lb
Slide 22: EBITDA improved in Q3/2023, compliance costs impacted net income
Q3/2023 FINANCIAL UPDATE: WHILE EBITDA IMPROVED IN Q3/2023, ADDITIONAL COMPLIANCE COSTS IMPACTED OUR NET INCOME Q3 Y-O-Y Net Income Net Income Net Sales EBITDA (before IUPK PNBP)1 (after IUPK PNBP) Adjusted C1 Cost2 Capex $570 m $263 m $103 m $(54) m $0.21 $480 m 46% margin 18% margin -10% margin pe
Slide 23: Sales performance in Q3/2023 got back on track
Net Sales Net Sales ($m) 3000 2,831 • In 9M/2023, net sales 2500 118% decreased by 42%, due to the 1,977 -42% 2000 1,609 delayed export permit from 1 1,299 April until 23 July 2023. Q3/2023 FINANCIAL UPDATE: 1500 1,083 1,151 • However, our sales SALES 1000 -11% 590 performance in Q3/2023 got 1,030 6
Slide 24: EBITDA improved in Q3/2023, additional compliance costs impacted net income
EBITDA and EBITDA Margin • Our net income in 9M/2023 was EBITDA ($m) EBITDA Margin (%) 2,000 65.0 significantly impacted by higher 61.3 60.1 compliance costs, i.e.,: 1,800 54.9 54.0 55.0 1,600 52.1 § Absence of revenue from 1 April to 1,400 46.0 45.0 23 July 2023 due to the delayed 143% 1,200 35.0 e
Slide 25: Maintained cost discipline and prudent financial management in 9M/2023
Q3/2023 FINANCIAL UPDATE: MAINTAINED COST DISCIPLINE AND PRUDENT FINANCIAL MANAGEMENT IN 9M/2023 Cash opex profile Capex profile 304 $m $m 1,300 1,283 1000 917 234 228 900 1,100 218 968 972 800 26% 242 909 696 900 700 932 26% 600 183 531 25% 229 700 479 84 88 500 702 750 21% 113 676 23% 110 500 400
Slide 26: Mining and infrastructure projects progressing on schedule
Q3/2023 FINANCIAL UPDATE: MINING AND INFRASTRUCTURE PROJECTS PROGRESSING ON SCHEDULE Year 2023 2024 2025 2030 2034 2046 Quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Mining activities Batu Hijau Phase 7 Batu Hijau Phase 8/ Stockpiles Elang project Infrastructure projects In $m Capex required Spent to
Slide 27: Bank loans and IPO proceeds help fund the expansion
Capitalization per Sept 30, 2023 Maturity date Balance (US$m) Iterest rate Notes Cash and cash equivalents 1,226 Facility of $1,295 m which includes a US$275 m Letter of Credit (LC) facility. AMIN Term Loan Facility 31-Dec-31 300 SOFR + 3.75% - 4.50% LC facility was reduced from US$325 m to US$275 m
Slide 28: Agenda
AGENDA Q3/2023 Highlights Q3/2023 Operations Update Q3/2023 Project Expansion Update Q3/2023 Regulatory Update Q3/2023 Financial Update ESG Update Guidance & Outlook 28
Slide 29: Released the first sustainability report for year 2022
Q3/2023 ESG UPDATE: RELEASED THE FIRST SUSTAINABILITY REPORT FOR YEAR 2022 2022 SUSTAINABILITY REPORT This year AMMAN released its first Sustainability Report for the year 2022. In parallel, AMMAN has also released our SASB Index 2022, in reference to Metals and Mining Sustainability Accounting Stan
Slide 30: Signed a letter of commitment with the Copper Mark
Q3/2023 ESG UPDATE: SIGNED A LETTER OF COMMITMENT WITH THE COPPER MARK • On the 21st of September 2023, PT Amman Mineral Nusa Tenggara (AMNT), a subsidiary of PT Amman Mineral Internasional Tbk (AMMAN) was officially accepted into the Copper Mark assurance program. • AMNT signed a Letter of Commitme
Slide 31: Agenda
AGENDA Q3/2023 Highlights Q3/2023 Operations Update Q3/2023 Project Expansion Update Q3/2023 Regulatory Update Q3/2023 Financial Update ESG Update Guidance & Outlook 31
Slide 32: H2/2023 Outlook and Beyond
H2/2023 Outlook and Beyond Global Copper Market1 Volatility across commodity Energy transition and green sectors A long-term structural deficit of copper New projects must be targeted at rate markets expected to continue in continue to drive and support overall market remains intact. Global base cas
Slide 33: Slight adjustment for gold production in FY2023 guidance
Guidance & Outlook: SLIGHT ADJUSTMENT FOR GOLD PRODUCTION IN FY2023 GUIDANCE • There is a 5% adjustment in gold production FY 2023 Guidance for the FY2023 guidance that we released in Copper production (Mlbs) 337 Q3/2023 compared to that in H1/2022. Gold production (Koz) 502 • This adjustment is bec
Slide 34: Sustainable mining to create a legacy of best practice
Summary SUSTAINABLE MINING TO CREATE A LEGACY OF BEST • AMMN demonstrated its resilience despite multiple exogenous challenges. With this resilience, AMMN will surpass pre-IPO production target for FY2023. • On track to complete the Copper Smelter & PMR Facilities, Processing Plant expansion, and Co
Slide 35: Thank you
THANK YOU
PT Amman Mineral Internasional — Q3 2023 Earnings Presentation on 6ix