Pt Merdeka Copper Gold Tbk · IDX:MDKA
Pt Merdeka Copper Gold Tbk — Q3 2021 Earnings Presentation
37 slides from Pt Merdeka Copper Gold Tbk's earnings presentation, December 2021
Slide 1: PT Merdeka Copper Gold Tbk Q3 2021 Update
PT Merdeka Copper Gold Tbk Q3 2021 Update December 2021
Slide 2: 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 3: MDKA: Introduction
MDKA: 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”) • 1.9bt containing 8.8mt copper and 28 million oz gold inferred resource1 • PFS underway. Planned for release end of Q1 2022 •2 Wetar / M
Slide 4: ESG & Sustainability
ESG & Sustainability ESG & Sustainability Commitment MDKA has established an ESG & Sustainability Committee to oversee ESG programs and implementation progress. This committee assembles on a quarterly basis, is chaired by the CEO. All Executive team members participate and lead the drive for impro
Slide 5: Strong and Sound Financial Position
Strong and Sound Financial Position Revenue (US$m) EBITDA (US$m) Net Debt (US$m)1 Hedging 228 229 402 9,000 ounces at Q4-2021 185 US$1,900/oz 322 166 294 158 154 Gold 261 150 36,000 ounces at 2022 US$1,900/oz 1,200 tonnes at 47 Q4-2021 US$10,129/t Copper 2,000 tonnes at 2022 2018 2019 2020 9M-21 201
Slide 6: Tujuh Bukit Gold Mine
Tujuh Bukit Gold Mine Production Information Operational & Financial Performance Mining Method 2019 2020 9M 2021 Conventional open pit Unit Actual Actual Actual Metals Gold and silver Open Pit Mining Ore Mined M Tonnes 7.4 6.7 4.4 Mineralisation Type High sulphidation epithermal Waste Mined M Tonnes
Slide 7: TB Copper Project Leading Underground Copper/Gold Deposit
TB Copper Project Leading Underground Copper/Gold Deposit Perspective View: Upper High Grade Zone (“UHGZ”) 1 Underground Decline 1,890-meter long exploration decline Successfully completed in June 2020 2 2012 Inferred Resource (1) 1 1,900 Mt @ 0.45% Cu & 0.45 g/t Au Underground Decline ~ Contains ap
Slide 8: TB Copper Project Leading Underground Copper/Gold Deposit
TB Copper Project Leading Underground Copper/Gold Deposit Perspective View 1: August & October 2021 Drillholes Comments • Mineralisation tested has either met or exceeded expectations. This is UHGZ-21-049 expected to provide a solid foundation for ongoing study work • Latest MDKA drilling results: U
Slide 9: TB Copper Project Eight of World's Top Best Copper and Gold Drill Results
TB Copper Project Eight of World’s Top 20 Best Copper and Gold Drill Results over the Last Two Years From To Interval No Project Name Company Name Hole ID Cu (%) Au (g/t) (m) (m) (m) 1 Onto PT Sumbawa Timur Mining VHD037 536 1,485 949 1.3 0.7 2 Onto PT Sumbawa Timur Mining VHD073 730 1,471 741 1.3 0
Slide 10: Wetar Copper Mine
Wetar Copper Mine Production Information Operational & Financial Performance Mining Method Conventional open pit 2019 2020 9M 2021 Unit Actual Actual Actual Metals Copper Open Pit Mining Mineralisation Type Volcanogenic massive sulphide (“VMS”) Ore Mined M Tonnes 2.3 0.5 1.7 Waste Mined M Tonnes 3.8
Slide 11: Wetar: Extending Mine Life
Wetar: Extending Mine Life A geophysical survey of Wetar was completed during 2019 1 Partolang Lerokis Pit with approximately 20 targets identified within the mining lease. These types of deposits generally appear in clusters, which has resulted in the continued discovery of resources over time •1 P
Slide 12: Wetar Copper Mine Latest Drill Results
Wetar Copper Mine Latest Drill Results Partolang New Drill Holes and Results Comments Selected October 2021 Drill Results • The majority of drilling results from Partolang thus far have confirmed From To Interval previous interpretations of the Hole ID Cu % Au g/t Ag g/t Partolang mineralisation, wi
Slide 13: AIM Project Processing Overview
AIM Project Processing Overview AIM is a huge growth opportunity for Merdeka given the nickel developments taking place in Indonesia, which will demand significant volumes of sulphuric acid. Potential for exploration at Wetar to support 2-3 Mt of acid production Wetar IMIP (Maluku Province) (Morowal
Slide 14: AIM Project Economics
AIM Project Economics AIM Project Economics (First Plant of 1.2 Mtpa Capacity) Comments • Current resources and heap leach Project Statistics Unit Value inventory support a project life of 18 years. This is expected to be extended Project Life Years 18 over time Average Annual Project Revenue US$m 2
Slide 15: AIM Project: Illustrative Timeline
AIM Project: Illustrative Timeline 15
Slide 16: Pani JV Gold Project
Pani JV Gold Project Comments West-East Cross Section over the United Pani Gold Project • Expect greater resource to reserve conversion and better economics from combined project • Orebody outcrops – potential for low strip ratio, low cost mining • Initial metallurgical testing shows high recoveries
Slide 17: Growth and Capital Management
Growth and Capital Management Actual Performance Production Cashflow Strategy EBITDA (US$ m) Net Debt (US$ m) • Existing assets • Existing Operations Debt expected to 228 229 generate strong amortized quickly to 185 cashflow over next 5 (4 + years) 158 166 maintain balance sheet 150 154 years streng
Slide 18: Appendix
Appendix Z MERDEKA¢# COPPER GOLD
Slide 19: 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 Grasberg (Freeport) Gos
Slide 20: Strong and Reliable Indonesian Shareholders
Strong and Reliable Indonesian Shareholders Existing Shareholding Structure EV: US$6.4b1 EV: US$4.2b1 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 established corporates (i.e.
Slide 21: 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 22: MDKA IDR Bonds
MDKA IDR Bonds 1. 1st Tranche of 2020 IDR Bond amounting to Rp1.4T closed in July 2020 swapped to ~US$96m: - 1 year : Rp674b at IDR 8.9%, swapped to ~US$46m at USD 3.83% (repaid in August 2021) - 3 years : Rp726b at IDR 10.5%, swapped to ~US$50m at USD 5.10% 2. 2nd Tranche of 2020 IDR Bond amounting
Slide 23: Share Price and Liquidity
Share Price and Liquidity Current Capitalization 12 Month Share Price Performance Share Price (IDR)1 3,660 4,000 0 Shares Outstanding (m) 22,905 3,500 Market Cap (IDR) IDR83.83t 0 Market Cap1 ~US$5.85b 3,000 0 Net Debt2 US$47m 2,500 Share Price (IDR) Enterprise Value ~US$5.90b 2,000 0 Trading Volume
Slide 24: TB Copper Project Latest Drill Results
TB Copper Project Latest Drill Results UHGZ New Drill Holes and Results Comments Selected August and October 2021 Drill Results • The most recent holes of the current infill drilling program have all From To Interval returned intercepts in line with, or Hole ID Cu % Au g/t exceeding expectations (me
Slide 25: TB Copper Project Leading Mineral Resource
TB Copper Project Leading Mineral Resource 1.0 Bubble Size = Resource (Moz AuEq) Hu'u Grasberg Wafi Golpu 0.9 0.8 Oyo Tolgoi Tujuh Bukit UHGZ 0.7 First 20+ years Resource Copper Grade (%Cu) Lookout Hill Tujuh Bukit Underground 0.6 Tampakan Northpakes After first 20+ years West Wall Productora Frieda
Slide 26: Tujuh Bukit Near Mine Exploration
Tujuh Bukit Near Mine Exploration Open Pit Targets Could De-Risk Copper Project Ramp Up Open Pit Mineralisation Targets Comments Short to medium term exploration program in the near mine region will targeting Candrian and Katak Prospects. Both prospects have the potential to provide additional ore
Slide 27: AIM Project: Location
AIM Project: Location • Feedstock is shipped from Wetar Island to processing facilities at IMIP in Sulawesi • Approximately ±700kms of sea transport, with a sailing time of ~5 days Aerial view of IMIP (Morowali, Central Sulawesi Province) Location of AIM Processing Plant Pyrite will be loaded onto v
Slide 28: 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 2013. 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 29: COVID-19 Business Continuity Plan & Measures
COVID-19 Business Continuity Plan & Measures • MDKA has developed and is operating under a COVID-19 business continuity plan. It continues to operate its mines at Tujuh Bukit and Wetar and is continuing with ongoing expansion and development projects with some restrictions from preventative and prec
Slide 30: Safety at Work
Safety at Work MDKA places strong emphasis to ensure the safety and wellbeing of MDKA's workforce, communities and all stakeholders. 2020 Highlights • Strong safety performance result with a 2020 EOY total recordable injury frequency rate (TRIFR) of 0.43 which is a mining industry world class level
Slide 31: Safeguarding the Environment
Safeguarding the Environment MDKA applies effective environmental management practices and mitigates environmental risks in order to achieve excellence in our environmental performance. 2021 Progress Against Plans • ISO: 14001 Environmental Management System gap analysis audit completed. Findings be
Slide 32: Corporate Social Responsibility
Corporate Social Responsibility MDKA takes its corporate social responsibility (“CSR”) seriously. We understand the importance of engaging with our stakeholders, especially the communities in which the MDKA Group operates. We firmly believe that building trust and understanding among and with our co
Slide 33: Human Capital
Human Capital MDKA continues to step-up its human capital management in line with the Company’s vision to become The Global Leader in the Indonesian Mining and Metals Industry. The move started with strengthening the team, acquiring fresh commitments from top management to fully support initiatives
Slide 34: Significant Awards
Significant Awards Oct 2018 Award to BSI 22 April 2019 KLHK RI- 11 July 2019 KLHK RI- 15 July 2019 Award “Achievement of 10 million Category “SOE/Public Category “SOE/Public “Implementation Management hours work without LTI” Companies inspirator Companies inspirator of life environment in 2019” refo
Slide 35: Social Value Scorecard
Social Value Scorecard Category Key Indicators 2019 2020 Target Fatalities 0 0 Zero work-related fatalities Lost Time Injury Frequency Rate (“LTIFR”) 0.00 0.22 Zero Lost Time Injuries; 0.00 LTIFR Safety & Health (per million hours worked) 2020 target: 10% reduction on TRIFR (2020 target set Total Re
Slide 36: Key Financial Figures 2016 – 9M 2021
Key Financial Figures 2016 – 9M 2021 In US$m 2016 2017 2018 2019 2020 9M 2021 Revenue 0 129 294 402 322 261 P&L EBITDA (6) 99 158 228 150 154 Net Profit/(Loss) (3) 43 58 69 29 19 Cash 43 35 14 50 51 203 Other current assets 5 59 141 155 148 217 Fixed assets 240 268 593 647 640 629 Other non-current
Slide 37: Competent Person's Statement
Competent Person’s Statement The information in this report which relates to Exploration Activities and Exploration Results is based on, and fairly represents, information compiled by Mr Zach Casley, BSc (Hons). Mr Casley is full-time employee of PT Merdeka Copper Gold Tbk. Mr Casley is a certified
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