Pt Merdeka Copper Gold Tbk · IDX:MDKA
Pt Merdeka Copper Gold Tbk — Investor Presentation (April 2022)
39 slides from Pt Merdeka Copper Gold Tbk's investor presentation, April 2022
Slide 1: PT Merdeka Copper Gold Tbk
PT Merdeka Copper Gold Tbk April 2022
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: Acquisition of Nickel Mining and Refining Assets
Acquisition of Nickel Mining and Refining Assets
Slide 4: Acquisition of a World Class Nickel Mine Project and Operating Nickel Smelters
Acquisition of a World Class Nickel Mine Project and Operating Nickel Smelters • Merdeka is pleased to announce the acquisition of a world class nickel mine project and operating nickel smelters, this includes stakes in the following: o Sulawesi Cahaya Mineral (“SCM”), the world’s largest undevelope
Slide 5: Transaction Structure
Transaction Structure Merdeka, through its subsidiary PT Batutua Tambang Abadi (“BTA”), has entered into a conditional share subscription agreement for a 55.67% equity interest to invest ~US$374 million in PT Hamparan Logistik Nusantara (“HLN”)1. HLN has completed the acquisition of 95.3% of PT J&P
Slide 6: Overview of the Acquisition Assets
Overview of the Acquisition Assets The SCM Mine will supply saprolite ore to CSI and BSI RKEF plants producing nickel pig iron. The SCM Mine will also supply limonite ore to HPAL plants at IMIP producing Mixed Hydroxide Precipitate (“MHP”) - used in battery production • The Acquisition Assets princi
Slide 7: Large Long Life Resource
Large Long Life Resource SCM is the world’s largest undeveloped nickel resource based on publicly available information World Nickel Resources 2.200 Sudbury 2.000 Pomalaa East 1.800 Tapunopaka Pomalaa Gag Island Bugotu Nakety/Moneo 1.600 Southern Samar Biankouma-Sipilou Weda Bay 1.400 Goro Hanking G
Slide 8: SCM Mine Ore Supply
SCM Mine Ore Supply SCM mine will provide saprolite and limonite ore to RKEF and HPAL smelters at the existing Indonesia Morowali Industrial Park (“IMIP”) and future Indonesia Konawe Industrial Park (“IKIP”) Saprolite Limonite Saprolite Limonite Ore Ore Ore Ore IMIP RKEF IMIP HPAL IKIP RKEF IKIP HPA
Slide 9: Established Nickel Pig Iron Smelters
Established Nickel Pig Iron Smelters CSI Smelter and BSI Smelter are jointly owned and operated with Tsingshan at IMIP. They are both fully operational and have a combined nameplate capacity of ~38,000 tonnes of nickel per year Summary • Both CSI smelter and BSI smelter were built by Tsingshan in 20
Slide 10: Overview of IKIP – Future Industrial Park
Overview of IKIP – Future Industrial Park The Indonesia Konawe Industrial Park (“IKIP”) is in the planning and feasibility phase - the industrial park will be focused on HPAL technology, benefiting from SCM’s large limonite resource IKIP IMIP IKIP will be built inside SCM’s IUP Large Site and is exp
Slide 11: Merdeka Overview
Merdeka Overview Z MERDEKA@# COPPER GOLD
Slide 12: MDKA: Portfolio Snapshot
MDKA: Portfolio Snapshot Pani Gold Project1 Resources : 4.7 Moz Au AIM Project Multi-commodity project (Cu, Au, Ag, Fe, S, Zn) SCM Nickel/Cobalt Mine2 • Resources : 13.8 Mt Ni, 1.0 Mt Co • JV partner in 2 RKEF plants located at IMIP. Total capacity of 38ktpa of Nickel Wetar1 Resources: 0.2 Mt Cu IKI
Slide 13: MDKA: Introduction
MDKA: Introduction MDKA today consists of six main assets, which are in order of importance, as follows: •1 Tujuh Bukit Copper/Gold Project (“TB Copper Project”) • 1.8bt at 0.46% Cu containing 8.2Mt copper resource and at 0.50 g/t Au containing 28.6 million oz gold resource1 •2 Nickel Mining and Ref
Slide 14: 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 15: Strong and Sound Financial Position
Strong and Sound Financial Position Revenue (US$m) EBITDA (US$m) Net Debt (US$m)1 Hedging 402 228 221 229 381 322 185 2022 51,477 ounces 294 158 166 Gold Jan – at 150 151 Dec US$1,879/oz 2022 3,500 tonnes Copper Jan – at Jul US$9,950/t 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 Debt
Slide 16: Producing Assets and Development Projects
Producing Assets and Development Projects
Slide 17: Tujuh Bukit Gold Mine
Tujuh Bukit Gold Mine Production Information Operational & Financial Performance Mining Method 2019 2020 2021 Conventional open pit Unit Actual Actual Actual Metals Gold and silver Open Pit Mining Ore Mined M Tonnes 7.4 6.7 6.5 Mineralisation Type High sulphidation epithermal Waste Mined M Tonnes 8.
Slide 18: TB Copper Project Leading Underground Copper/Gold Deposit
TB Copper Project Leading Underground Copper/Gold Deposit Perspective View: CPY and BCC Domains 1 Underground Decline 1,890 metre long exploration decline Successfully completed in June 2020 2 2021 Resource (1) 1,784 Mt @ 0.46% Cu & 0.50 g/t Au 1 Underground Decline (Containing approx. 8.2Mt Cu & 28
Slide 19: TB Copper Project Leading Underground Copper/Gold Deposit
TB Copper Project Leading Underground Copper/Gold Deposit Perspective View: February 2022 Drillholes Comments • Mineralisation drilled to date has either met or exceeded expectations. This is expected to provide a solid foundation for ongoing study work • MDKA has invested US$99m up to 31 December 2
Slide 20: TB Copper Project Top Copper and Gold Drill Results
TB Copper Project Twelve 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 Red Chris Newcrest Mining Limited RC611 542 1,170 628 0.91 1.70 2 Filo del Sol Filo Mining Corp. FSDH041 188 1,046
Slide 21: 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 22: Wetar Copper Mine
Wetar Copper Mine Production Information Operational & Financial Performance Mining Method Conventional open pit 2019 2020 2021 Unit Actual Actual Actual Metals Copper Open Pit Mining Mineralisation Type Volcanogenic massive sulphide (“VMS”) Ore Mined M Tonnes 2.3 0.5 2.4 Waste Mined M Tonnes 3.8 2.
Slide 23: Wetar: Extending Mine Life
Wetar: Extending Mine Life A geophysical survey of Wetar was completed during 2019 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 Wet
Slide 24: Wetar Copper Mine Latest Drill Results
Wetar Copper Mine Latest Drill Results New Drill Holes and Results Comments Selected October 2021 Drill Results (Partolang) Partolang From To Interval • The majority of drilling results from Hole ID Cu % Au g/t Ag g/t Partolang thus far have confirmed (metres) (metres) (metres) previous interpretati
Slide 25: 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) (Morowa
Slide 26: AIM Project: in Pictures
AIM Project: in Pictures AIM Acid Tanks Chloride Plant: Piling works Highlights on site works performed in Q4 2021 • Acid plant perimeter retaining walls reached 60% completion • Piling underway at both the Acid and Chloride Plants • QMB Acid Tank installation is progressing with jack-up methods und
Slide 27: AIM Project: Illustrative Timeline
AIM Project: Illustrative Timeline 27
Slide 28: Pani Gold Project
Pani Gold Project Comments West-East Cross Section over the United Pani Gold Project • Merdeka’s effective economic ownership in Pani Gold Project is 70% through controlling interests in both PBJ / Pani IUP (~83.35%) and GSM / Pani CoW (~50.1%). • The Pani IUP and Pani CoW mining properties are adja
Slide 29: Competent Person's Statements
Competent Person’s Statements
Slide 30: SCM Competent Person's Statement
SCM Competent Person’s Statement The information in this report that relates to Mineral Resources is based on information compiled by Mr. Mick Elias and Mr. Dmitry Pertel. Mr. Elias is a part-time employee of CSA Global Pty Ltd and Mr. Pertel is a full-time employee of AMC. Mr. Elias is a Fellow of
Slide 31: Merdeka Competent Person's Statement
Merdeka 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 ce
Slide 32: Appendices
Appendices Z MERDEKA®® COPPER GOLD
Slide 33: Strong and Reliable Indonesian Shareholders
Strong and Reliable Indonesian Shareholders Existing Shareholding Structure EV: US$6.3b1 EV: US$6.0b1 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 established corporates (i.e.
Slide 34: 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 Albert Saputro Simon Milroy Gavin Caudle David Fowler Titien Supeno Andrew Starkey Vice President Title Preside
Slide 35: 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 Eric Rahardja Boyke Abidin Gerick Mouton Peter Scanlon Zach Casley Doug Jones Commercial and Project Title Exte
Slide 36: Share Price and Liquidity
Share Price and Liquidity Current Capitalization 12 Month Share Price Performance Share Price (IDR)1 5,525 6,000 0 Shares Outstanding (m) 22,905 Market Cap (IDR) IDR126.55t 5,000 0 Market Cap1 ~US$8.81b 4,000 0 Net Debt2 US$269m Share Price (IDR) Enterprise Value ~US$9.08b 3,000 0 Trading Volume Ave
Slide 37: 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$50m at USD 5.10% 2. 2nd Tranche of 2020 IDR Bond amounting
Slide 38: Key Financial Figures
Key Financial Figures 2016 – 2021 In US$m 2016 2017 2018 2019 2020 2021 Revenue 0 129 294 402 322 381 P&L EBITDA (6) 99 158 228 150 221 Net Profit/(Loss) (3) 43 58 69 29 33 Cash 43 35 14 50 51 185 Other current assets 5 59 141 155 148 226 Fixed assets 240 268 593 647 640 649 Other non-current assets
Slide 39: 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
PT Merdeka Copper Gold — Investor Presentation (April 2022) on 6ix