Pt Bayan Resources Tbk · IDX:BYAN
Pt Bayan Resources Tbk — Q1 2024 Earnings Presentation
25 slides from Pt Bayan Resources Tbk's earnings presentation, Jun 5, 2024
Slide 1: Bayan Resources 1Q 2024 Investor Update
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Slide 2: Overview
Overview ➢ Operationally 1Q 2024 was a challenging quarter with very low water level in the Senyiur river. This is the lowest water level the Company has experienced since the last prolonged dry season in 2019. ➢ However, despite these challenge, 1Q 2024 still showed growth in production and sales v
Slide 3: Bayan's Financial and Operational Performance
Bayan’s Financial and Operational Performance 2022 2023 1Q23 1Q24 Financial Performance (In Million USD) Revenue 4,703.6 3,581.4 1,049.0 769.1 Gross Profit 3,160.1 1,664.2 592.3 312.2 EBITDA 3,026.4 1,718.9 583.2 322.1 Net Profit After Tax 2,301.6 1,279.6 448.6 217.3 Financial Ratios Gross Profit Ma
Slide 4: One of the Largest Coal Producers
One of the Largest Coal Producers 2023 Production ➢ Bayan is ranked 3rd by production 100 and sales volumes in Indonesia. 77.8 80 Million Tonnes 65.9 60 ➢ Bayan’s sales volumes grew 18% 49.7 46.1 41.9 in 2023. 40 30.1 16.9 20 ➢ The first phase of Muara Pahu was 0 opened in 2023 which will allow us B
Slide 5: Low Cost Incremental Growth
Low Cost Incremental Growth Capex Intensity by Country (1) Tabang Capacity Growth ➢ Our new coal haul road and the 250 80+ …Unlocking tangible capacity 207 218 first and second barge loading 200 40+ upside at ~US$10/ton discretionary growth Capex 175 facility were completed at the end 150 159 161 13
Slide 6: One of the Lowest Cost Producers in Indonesia
One of the Lowest Cost Producers in Indonesia Global Cost Competitive Positioning ➢ Tabang is independently rated as one of the worlds lowest cost energy-adjusted producers of seaborne thermal coal. ➢ Tabang has large reserves and a very low Life of Mine stripping ratio of 4.3. ➢ A new JORC reserves
Slide 7: And One of the Highest Margin Producers in Indonesia
And One of the Highest Margin Producers in Indonesia 2023 EBITDA Margin ➢ Over the last few years, Bayan 60% has transformed itself into one of 50% 48% the highest margin producers in 40% 39% Indonesia. 28% 30% 26% 26% ➢ This is due to the ramp up of its 20% 15% world class Tabang coal complex, 10%
Slide 8: Deleveraged the Group
Deleveraged the Group Quarterly Net Cash US$ Million ➢ Targeted net leverage of less than 2,000 1,827 2.5x EBITDA throughout the commodity cycle. 1,500 1,331 1,325 1,219 ➢ Bayan has been re-assigned 1,000 620 independent credit ratings of Ba2 500 by Moody’s in January 2024. 241 309 335 259 0 1Q22 2Q
Slide 9: Dividends
Dividends ➢ Bayan has a proven history of utilizing cash to reduce leverage and then return excess cash to shareholders. ➢ Bayan has paid a total of US$ 3,600.0 million (include interim in January 2024) in dividends over the last three years (the highest of any Indonesian listed coal company). ➢ Its
Slide 10: 1Q 2024
1Q 2024 Overburden Removal Coal Production Weighted Average Strip Ratio Average Cash Costs Coal Sales Average Selling Price Committed & Contracted Sales EBITDA Debt and Cash Position Capital Expenditure 9 www.bayan.com.sg
Slide 11: Overburden Removal (OB)
Overburden Removal (OB) (million BCM) 70 62.0 ➢ 1Q24 OB of 62.0 million BCM was 59.2 60 54.4 higher than the Budget and 4Q23 50 46.6 primarily due to: 40 ▪ Additional 2 OB fleets 30 mobilized to Tabang 20 combined with lower rainfall 10 which increased efficiency. 0 1Q23 4Q23 1Q24B 1Q24 Note : B sta
Slide 12: Coal Production
Coal Production (million MT) 16 14.0 14.0 ➢ 1Q24 coal production of 14.0 14 12.5 million MT was higher than the 12 10.5 Budget primarily due to the lower 10 actual SR than Budgeted combined 8 with the higher overburden 6 production. 4 2 ➢ 1Q24 coal production was in line 0 1Q23 4Q23 1Q24B 1Q24 with
Slide 13: Weighted Average Stripping Ratio (SR)
Weighted Average Stripping Ratio (SR) 6 5.2 5 4.4 3.7 4.2 ➢ 1Q24 weighted average stripping 4 ratio was lower than the Budget 3 due to: 2 ▪ Tabang operating in the 1 previously pre-stripped areas in 4Q23 and in 1Q24 0 1Q23 4Q23 1Q24B 1Q24 which resulted in the lower Note : B stands for Budget Figure
Slide 14: Average Cash Costs (Budget vs Actual)
Average Cash Costs (Budget vs Actual) 49 45.3 42 ➢ 1Q24 Cash Costs were significantly 37.3 lower than Budget due to: 35 Lower employee costs due to the (US$ / MT) 28 ▪ Budget evenly spreading the full 21 annual bonus throughout the year 14 whilst we only paid the initial 7 bonus to staff. 0 ▪ Lower
Slide 15: Average Cash Costs (1Q24 vs 4Q23)
Average Cash Costs (1Q24 vs 4Q23) 48 ➢ 1Q24 Cash Costs of US$ 37.3/MT were 40 41.6 37.3 higher than 4Q23 of US$ 30.2/MT due to: ▪ The large reversal of previously (US$ / MT) 32 30.2 accrued DMO expense in 4Q23 which 24 materially reduced costs. 16 ▪ Higher overburden costs due to the 8 higher weight
Slide 16: Coal Sales (by volume)
Coal Sales (by volume) 14 (million MT) 11.6 12.6 11.6 12.2 ➢ 1Q24 coal sales volumes of 12.2 12 million MT were higher than the 10 Budget but slightly lower than 4Q23. 8 6 4 ➢ Group inventory levels increased to 2 8.4 million MT as at the end of March 0 2024. 1Q23 4Q23 1Q24B 1Q24 Note : B stands for
Slide 17: Coal Sales (by volume) (continued)
Coal Sales (by volume) (continued) Geographic Distribution (1Q24) – by Volume ➢ The Company is focusing on Per Region Per Country continuing to build its long term South Korea Others 3% contracts within Indonesia and with other South East Asian IPP’s. 5% India Domestic East Asia 6% 25% 22% Malaysia
Slide 18: Average Selling Price (ASP)
Average Selling Price (ASP) 100 90.4 90 ➢ 1Q24 ASP of US$ 62.8/MT was 80 marginally lower than the Budget of US$ 63.7/MT. (US$ / MT) 70 64.9 63.7 62.8 60 ➢ 1Q24 ASP was slightly lower than 50 4Q23 of US$ 64.9/MT. 40 30 20 10 0 1Q23 4Q23 1Q24B 1Q24 * ASP includes coal and non-coal sales Note : B stan
Slide 19: EBITDA
EBITDA US$ Million 700 600 583.2 ➢ 1Q24 EBITDA of US$ 322.1 million 500 was significantly higher than the 445.3 400 322.1 Budget of US$ 224.5 due to 300 224.5 significantly lower cash costs 200 combined with slightly higher sales 100 volumes. 0 1Q23 4Q23 1Q24B 1Q24 ➢ 1Q24 EBITDA was lower than 4Q24
Slide 20: Total Debt and Cash Position
Total Debt and Cash Position 1400 ➢ At 31 December 2023 we had utilized US$ 400 million of our 1,239.8 1200 working capital facilities. In March 2024, the Company did a partial (in million US$) 1000 repayment of US$ 260 million. 800 735.0 ➢ Working capital facilities of approximately US$ 360 million
Slide 21: Capital Expenditure
Capital Expenditure ➢ 1Q24 Capex was US$ 44.1 million, 90 which was lower than the Budget 78.3 primarily due to the timing delay in 80 certain projects such as relocation 70 67.8 BUMA camp, BCT expansion, river 60 57.6 diversion, overland conveyor at Muara Pahu and the FSP new camp. In Million USD 5
Slide 22: Appendix
Appendix PT Perkasa Inakakerta PIK PT Teguh Sinarabadi TSA PT Firman Ketaun Perkasa FKP PT Wahana Baratama Mining WBM PT Brian Anjat Sentosa BAS PT Bara Tabang BT Tabang PT Fajar Sakti Prima FSP PT Dermaga Energi DE North PT Tanur Jaya TJ Pakar PT Tiwa Abadi TA PT Silau Kencana SK PT Orkida Makmur O
Slide 23: Appendix
Appendix Kangaroo Resources Pty Ltd KRL PT Dermaga Perkasapratama DPP PT Indonesia Pratama IP PT Muji Lines Muji PT Bayan Energy BE PT Metalindo Prosestama MP PT Sumber Aset Utama SAU PT Karsa Optima Jaya KOJ PT Gunungbayan Pratamacoal GBP PT Kariangau Power KP 22 www.bayan.com.sg
Slide 24: Disclaimer
Disclaimer This presentation contains forward-looking statements based on assumptions and forecasts made by PT. Bayan Resources Tbk management. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are base
Slide 25: Thank You
Thank You 24 www.bayan.com.sg