Pt Merdeka Copper Gold Tbk · IDX:MDKA
Pt Merdeka Copper Gold Tbk — Investor Presentation (February 2021)
32 slides from Pt Merdeka Copper Gold Tbk's investor presentation, February 2021
Slide 1: PT Merdeka Copper Gold Tbk Investor Presentation
PT Merdeka Copper Gold Tbk Investor Presentation February 2021
Slide 2: 1. Executive Summary
1. Executive Summary Z M ERDEKA‘# COPPER GOLD
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 Cu and 28 million oz inferred resource1 • PFS underway •2 Wetar / Morowali Acid Iron Metal (“AIM Project”) • New
Slide 4: 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 5: 2. Company Summary
2. Company Summary b MERDEKA®® COPPER GOLD
Slide 6: Key Investment Highlights
Key Investment Highlights Established and proven gold and copper development and production capability. 1 Indonesia’s only gold and copper company actively developing projects in the past 5 years • TB Gold mine produced 223,042 ounces and 157,175 ounces of gold in 2019 and 2020 respectively at an al
Slide 7: Strong and Reliable Indonesian Shareholders
Strong and Reliable Indonesian Shareholders Existing Shareholding Structure Valuation: US$10.0b EV: US$5.2b1 EV: US$3.0b1 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 establish
Slide 8: Share Price and Liquidity
Share Price and Liquidity Current Capitalization 12 Month Share Price Performance Share Price (IDR)1 2,550 3,000 1,20 0,000 ,000 Shares Outstanding (m) 21,898 Market Cap (IDR) IDR55.84t 2,500 1,00 0,000 ,000 Market Cap1 ~US$3.98b 2,000 800 ,000,0 00 Net Debt2 US$140m Share Price (IDR) Enterprise Val
Slide 9: Management with Significant Industry Experience
Management with Significant Industry Experience The management team comprises a group of individuals with rich experience within the industry and within their individual business functions Experience More than 30 years of experience in mining sector including exploration, feasibility studies, perm
Slide 10: Sound Financial Position
Sound Financial Position Revenue (US$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 1st tranche1 of IDR Bond equivalent to • Strong cash flow generation with consolidated US$96m bond clo
Slide 11: 3. Operational Results
3. Operational Results Z MERDEKA®® COPPER GOLD
Slide 12: TB Gold Mine
TB Gold Mine Production Information Operational & Financial Performance Mining Method Conventional Open Pit 2018 2019 2020 Unit Actual Actual Actual Metals Gold and Silver Open Pit Mining Ore Mined M Tonnes 5.3 7.4 6.7 Mineralisation Type High Sulphidation Epithermal Waste Mined M Tonnes 9.4 8.4 5.7
Slide 13: TB Gold Mine: Heap Leach Slump
TB Gold Mine: Heap Leach Slump No anticipated material change in gold reserves and expected to revert to mine plan production by end of H1 2021 • On 12 September 2020, a portion of the ore that was stacked on the front face of the heap leach pad Overview & subsided (the “incident”). There were no in
Slide 14: Wetar Copper Mine
Wetar Copper Mine Production Information Operational & Financial Performance Mining Method Conventional Open Pit 2018 2019 2020 Unit Actual Actual Actual Metals Copper Open Pit Mining Mineralisation Type Volcanogenic Massive Sulphide (“VMS”) Ore Mined M Tonnes 1.6 2.3 0.5 Waste Mined M Tonnes 1.4 3.
Slide 15: Wetar Copper Mine: Strategic Review
Wetar Copper Mine: Strategic Review Development of the Partolang open pit is continuing, with mining operations fully ramped up in December 2020. This is expected to lead to increased copper production in 2021 Wetar Copper Production Actual and Planned (tonnes) 17,071 16,777 1 5,377 2018 2019 2020 2
Slide 16: Wetar: Significant Potential to Extend Mine Life
Wetar: Significant Potential to Extend Mine Life A geophysical survey of Wetar was completed during 2019 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 Par
Slide 17: 4. Growth Projects
4. Growth Projects Z M ERDEKA# COPPER GOLD
Slide 18: 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 (0.2% Cu) 1,900 Mt @ 0.45 %Cu & 0.45 g/t Au 1 Underground Decline ~ Conta
Slide 19: TB Copper Project Latest Drill Results
TB Copper Project Latest Drill Results UHGZ New Drill Holes and Results Comments Selected February Drill Results • The five most recent holes of the current infill drilling program have all End of Hole From To Interval returned intercepts in line with, or Hole ID Depth Cu % Au g/t (metres) (metres)
Slide 20: 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 21: 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 22: AIM Project Processing Overview
AIM Project Processing Overview Initial plant to produce 1 mtpa 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 (80% Merdeka) Merdeka Ship 700km to Pyrite Calcine P
Slide 23: AIM Project: Preliminary Economics
AIM Project: Preliminary Economics AIM Project Economics (First Plant) Comments • Current resources and heap leach Project Statistics Unit Value inventory support a project life of 20 years. This is expected to be extended Project Life Years 20 over time Total Revenue (20 years) US$m 3,815 • Assumin
Slide 24: AIM Project: Illustrative Timeline
AIM Project: Illustrative Timeline 2021 2022 Jan Feb Mar Apr May Jun Jul Aug Q1 Q2 Q3 Q4 Key Tasks 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 5 6 7 8 9 10 11 12 1 Financial Model 1 2 JVA / JV Entity Establishment 2 3 Feasibility Study 3 4 Project Financing 4 5 Purchase L
Slide 25: 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 26: Merdeka: Strong Cash Generation and the Ability to Finance and Develop Projects
Merdeka: Strong Cash Generation and the Ability to Finance and Develop Projects Actual Estimate 2017 2018 2019 2020 2021 2022 Operations 223,000 oz 167,000 oz 157,000 oz 141,000 oz 17,000 t 17,000 t 5,000 t Gold Copper Gold Copper Gold Copper Gold Copper Gold Copper Started Drilling TB Copper Comple
Slide 27: Appendix
Appendix Z MERDEKA¢# COPPER GOLD
Slide 28: 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 29: 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 30: Merdeka is in the Top 10 of the Jakarta Composite Index By Turnover
Merdeka is in the Top 10 of the Jakarta Composite Index (JCI) By Turnover With IDR 43 trillion of total turnover, Merdeka is within the top 10 of JCI movers since 2020 Top 10 JCI movers in terms of turnover1 (IDRt) 200 199 140 110 108 81 77 57 49 43 Rank 1 2 3 4 5 6 7 8 9 10 Market Cap2 37 59 22 22
Slide 31: 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 32: 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,
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