Pt Merdeka Copper Gold Tbk · IDX:MDKA
Pt Merdeka Copper Gold Tbk — Investor Presentation (January 2021)
34 slides from Pt Merdeka Copper Gold Tbk's investor presentation, January 2021
Slide 1: PT Merdeka Copper Gold Tbk Investor Presentation
PT Merdeka Copper Gold Tbk Investor Presentation January 2021
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 are in order of importance, as follows: 1. Tujuh Bukit Copper/Gold Project (“TB Copper Project”) 2. Wetar / Morowali Acid Iron Metal (“AIM Project”) – new expansion project 5 Main Assets 3. Pani Joint Venture (“Pani JV Gold Project
Slide 6: Merdeka: Indonesia - Right Geological Address
Merdeka: 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 Grasberg (Freep
Slide 7: Merdeka: Strong and Reliable Indonesian Shareholders
Merdeka: Strong and Reliable Indonesian Shareholders Existing Shareholding Structure Valuation: US$10.0b EV: US$4.3b1 EV: US$3.6b1 The shareholders collectively have rich experience in leading and growing businesses in Indonesia, ranging from 1 Track Record in dynamic tech platforms (Gojek) to well
Slide 8: Merdeka: Sound Financial Position
Merdeka: Sound Financial Position Revenue (US$m) EBITDA (US$m) Hedging 402 228 Gold 2021 3,000 oz at US$1,775 / oz 294 297 158 150 Copper 2021 Nil 2018 2019 YTD Q3 2020 2018 2019 YTD Q3 2020 Debt Comments US$200m syndicated facility of 8 international banks • Strong cash flow generation with conso
Slide 9: Merdeka: Share Price and Liquidity
Merdeka: Share Price and Liquidity Current Capitalization 12 Month Share Price Performance Share Price (IDR)1 2,540 Shares Outstanding (m) 21,898 Market Cap (IDR) IDR55.62t Market Cap1 ~US$3.89b Net Debt2 US$140m Enterprise Value ~US$4.03b Trading Volume 12 Month MDKA Performance vs Gold Index Avera
Slide 10: Merdeka: Management with Significant Industry Experience
Merdeka: 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 stud
Slide 11: Merdeka: Milestone
Merdeka: Milestone Actual Estimate 2017 2018 2019 2020 Operations 223,000 oz 154,000 – 167,000 oz 160,000 oz Wetar 141,000 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 Decline Cumulative Decl
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 Mining Method Conventional Open Pit YTD 2018 2019 Unit Q3 2020 Actual Actual Metals Gold and Silver Actual Open Pit Mining Mineralisation Type High Sulphidation Epithermal Ore Mined M Tonnes 5.3 7.4 6.7 Waste Mined M Tonnes 9.4
Slide 14: TB Gold Mine: Heap Leach Slump
TB Gold Mine: Heap Leach Slump On 12 September 2020, a portion of the ore that was stacked on the front face of the heap leach pad subsided (the “incident”). There were no injuries to personnel or environmental impacts. Cause of Slump Remediation Plan Production Impact • Lower lifts of the • Recover
Slide 15: 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 • Blue lines extending from the decline denote drilling results recei
Slide 16: TB Copper Project Latest Drill Results (December 2020)
TB Copper Project Latest Drill Results (December 2020) UHGZ Drilling Results Comments End of Hole • The most recent four holes of From To Interval the current infill drilling Hole ID Depth Cu % Au g/t (metres) (metres) (metres) program have all returned (metres) intercepts in line with, or 800.2 428
Slide 17: TB Copper Project Leading Mineral Resource
TB Copper 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 Underground 0
Slide 18: 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 19: Wetar Copper Mine
Wetar Copper Mine Production Information Operational & Financial Performance Mining Method Conventional Open Pit YTD 2018 2019 Unit Q3 2020 Metals Copper Actual Actual Actual Mineralisation Type Volcanogenic Massive Sulphide (“VMS”) Open Pit Mining Ore Mined M Tonnes 1.6 2.3 0.2 Process Method Sulph
Slide 20: Wetar Copper Mine: Strategic Review
Wetar Copper Mine: Strategic Review Development of the Partolang open pit is continuing with mining operations commencing in October 2020, leading to improved copper production in 2021 Wetar Copper Production (tonnes) 17,071 16,777 2018 2019 2020 2021 2022 2023 Kali Kuning (2016-19) Lerokis Lerokis
Slide 21: 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 22: AIM Project
AIM Project AIM Project is a multi-commodity development project expected to produce more than US$200m of revenue per annum over 20 years Pyrite Processing Products Feedstock Plant Expected Annual 1mtpa plant capacity, can be expanded Products Revenue For Each Plant (US$m) Sulphuric Acid 70 & Steam
Slide 23: Pani JV Gold Project
Pani JV Gold Project Overhead & Cross Sectional Illustration of Planned Step-Out Comments Drilling Between PANI COW & PANI IUP • JV with J Resources to develop a combined project. Pending regulatory and J Resources’ lenders’ approvals – Merdeka’s economic share is 40% and Merdeka controls the JV • E
Slide 24: Appendix
Appendix Z MERDEKA¢# COPPER GOLD
Slide 25: Key Financial Figures 2016 – YTD Q3 2020
Key Financial Figures 2016 – YTD Q3 2020 In US$m 2016 2017 2018 2019 YTD Q3 2020 Revenue 0 129 294 402 297 P&L EBITDA (6) 99 158 228 150 Net Profit (3) 43 58 69 51 Cash 43 35 14 50 84 Other current assets 5 59 141 155 149 Fixed assets 240 268 593 647 632 Other non-current assets 17 9 50 100 87 Total
Slide 26: Key Shareholders
Key Shareholders With a Track Record and Proven Financing Capabilities Provident, Saratoga and Thohir Group have a history of co-investment over many years with a distinguished track record in building value as well as attracting blue chip international institutional investors and high- quality bank
Slide 27: Merdeka is in the Top 10 of the Jakarta Composite Index By Trading Volume
Merdeka is in the Top 10 of the Jakarta Composite Index (JCI) By Trading Volume With IDR 37 trillion of total turnover, Merdeka is within the top 10 of JCI movers YTD to December 2020 Top 10 JCI movers in terms of turnover1 (IDRt) Rank Market Cap2 37 59 23 21 8 17 3 3 4 3 (US$b) Note: 1. Turnover is
Slide 28: 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 Feed
Slide 29: AIM Project: Locations
AIM Project: Locations Wetar (Maluku Province) IMIP (Morowali, Central Sulawesi Province) Mine, Concentrator & Ship Loading Dual-location AIM Processing Plant project at Wetar Island and IMIP at Sulawesi Island in Indonesia. Project include ±700kms of sea transport Sailing time is around 1.5 days di
Slide 30: 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 31: 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 31
Slide 32: 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 33: 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 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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