Pt Merdeka Copper Gold Tbk · IDX:MDKA
Pt Merdeka Copper Gold Tbk — Investor Presentation (March 2019)
27 slides from Pt Merdeka Copper Gold Tbk's investor presentation, March 2019
Slide 1: Indonesia’s World Class Metals Company
Indonesia’s World Class Metals Company March 2019 PT Merdeka Copper Gold Tbk. 1
Slide 2: Disclaimer
Disclaimer Forward Looking Statements This presentation has been prepared by Merdeka Copper Gold Tbk (“Merdeka”) 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 represe
Slide 3: Asset Overview
Asset Overview Production and quality growth profile Growth Copper and Gold Production Porphyry Copper Project Identified and executable growth Tujuh Bukit and Wetar Mass Underground Copper / Gold options • Tujuh Tujuh Bukit Bukit • World World Class Class Resource Resource • Pani Pani Acquisition A
Slide 4: Key Success Factors
Key Success Factors 1. Strong and Reliable Indonesian Shareholders 2. Sound Financial 6. Very prospective Position Geology Merdeka Copper Gold 5. Commitment to 3. Experienced sustainability Management Team 4. Quality Assets PT Merdeka Copper Gold Tbk. 4
Slide 5: 1. Strong and Reliable Indonesian Shareholders
1. Strong and Reliable Indonesian Shareholders Who actively support the business Provident Group, Saratoga Group and Garibaldi (Boy) Thohir own more than 50% of Merdeka. Apart from Merdeka, the major assets of the three groups include: Provident Saratoga Boy Thohir 23.6% 23.9% 8.8 % Gojek Tower Bers
Slide 6: 2. Sound Financial Position
2. Sound Financial Position Built on operational performance Corporate Structure Hedging Primary Listing Indonesia Stock Exchange (MDKA.IJ) Gold Hedge 2019 89,792 ounces at US$ 1,301 Shares 4,164,518,330 Gold Hedge 2020 48,506 ounces at US 1329 Share Price Rp 3,500 Copper hedge 2019 1,747 tonnes at
Slide 7: 3. Management Team
3. Management Team Strength across all key disciplines Team Member Experience Gavin Caudle Founding shareholder of Provident Capital 15 years ago. Former Partner of Arthur Andersen and head Executive Director of M&A / Private Equity at Citigroup/Salmon Brothers. 25 years experience in Indonesia. Ric
Slide 8: 4.1 Tujuh Bukit Oxide Project
4.1 Tujuh Bukit Oxide Project Conventional open pit, heap leach production Open pit mining Ore Preparation plant • Low strip ratio. • Ore crushed to max 75mm size. • Conventional drill / blast and load & • Agglomerated with cement. haul. • Capacity increased from 4 to 8 mt pa in 2018, • Transitionin
Slide 9: 4.1 Tujuh Bukit Oxide Project
4.1 Tujuh Bukit Oxide Project Conventional open pit, heap leach production Heap Leach ADR Plant • Agglomerated ore trucked to leach pad. • Solution containing gold and silver pumped • Truck stacked and irrigated with diluted cyanide from heap leach to ADR plant. solution for 150 days. • Gold and sil
Slide 10: 4.1 Operational Performance continues at Tujuh Bukit
4.1 Operational Performance continues at Tujuh Bukit Guidance being consistently achieved Unit 2017 Actual 2018 Actual Expansion Project Open Pit Mining Ore Mined M Tonnes 3.3 5.3 • Increased resource to reserve conversion Waste Mined M Tonnes 4.1 9.4 (additional 350 koz of gold Mine Grade Au g/t 2.
Slide 11: 4.2 Wetar Copper Project
4.2 Wetar Copper Project Open pit, heap leach operation Open Pit Mining Heap Leaching • Low strip ratio. • Ore crushed to 18 mm and stacked to heap leach • Legacy geotechnical issues at Kali Kuning pit. pads using grasshoppers and trucks. • High grade deposits between 2-3% Cu, • Irrigated and aerate
Slide 12: 4.2 Wetar Copper Project
4.2 Wetar Copper Project Open pit, heap leach operation Process Plant Sales • Solution containing copper is extracted with • Copper is shipped to Surabaya in Eastern Solvent Extraction (“SX/EW”). Java, then sold. • The efficiency of extraction has been affected by • Majority of copper is exported. h
Slide 13: 4.2 Wetar Operations
4.2 Wetar Operations Turn around underway Unit 2017 Actual 2018 Actual Key Turn Around Initiatives Open Pit Mining Ore Mined M Tonnes 1,884 1,588 • Capacity to mine and stack Waste Mined M Tonnes 1,366 1.409 more ore with owner fleet and Mined Grade Cu % 2.09 2.98 new crusher. • Maximise area under
Slide 14: 4.2 Wetar Exploration
4.2 Wetar Exploration Targeting mine life extension Resource definition drilling completed at Partalong (aka Meron). Strong results including: PTD002 30.1m @ 2.81% Cu from 20m Partalong – Resource PTD003 36.1m @ 3.28% Cu from 14.5m Definition Ongoing PTD004 14.8m @ 3.66% Cu from 9.8m PTD005 34.3
Slide 15: 5. Sustainability
5. Sustainability Track record showing commitment to the long term • Tujuh Bukit 12 m hours no LTI. • Wetar 3 million hours no LTI. • Conservative engineering to minimize environmental impacts. • Community development programs run by local teams to international standards. • Sustainability Report fo
Slide 16: 6. The right geological address for copper and gold
6. The right geological address for copper and gold Big profits have / are being made Toka Tindung Gosowong Resource 4.0 m Au In production since 1998 – 4.8 m oz Grasberg (Freeport) Annual Production 132 k Au Au Resource 34.2 mt Cu, 91.4 m Au In production since 2012 – 1.2 m Au Annual Production 550
Slide 17: 6.1 Tujuh Bukit Porphyry Project
6.1 Tujuh Bukit Porphyry Project PFS underway for potential mass underground mine development Oxide open pit mine 2017 to 2025 Upper High Grade Zone (UHGZ) Subset of Total Porphyry Underground Exploration Target 250-350 Mt @ 0.7-0.9 % Cu & 0.7- 0.9 g/t Au From 2025 for +20 years Total Porphyry Infer
Slide 18: 6.1 World Class Mineral Resource
6.1 World Class Mineral Resource Initial >20 years target Upper High Grade Zone PT Merdeka Copper Gold Tbk. 18 Source: Company Annual Reports and Industry Data
Slide 19: 6.1 Concept Study Outcomes - UHGZ
6.1 Concept Study Outcomes - UHGZ Justify PFS and show strong investment case Study Outcomes • Initial project life >20 years exploiting around 14% of the total porphyry inferred Resource. • 260 Mt treated containing 6 M oz of gold and 2 Mt of copper. • 12 Mt per annum ore throughput. • Modest initi
Slide 20: 6.1 Recent surface drilling
6.1 Recent surface drilling Confirms porphyry quality Figure 1 shows a plan of the Upper High Grade Zone Figure 2 shows a cross section looking due north at (-300 meter RL) with completed drill holes and assay the completed directional drilling program targeting results. the East Block of the Upper
Slide 21: 6.2 Pani Acquisition
6.2 Pani Acquisition Significant addition to growth pipeline • Outcrops, thick, low strip • Resource is open, hallmarks of a large system • Mining IUP, with additional license area applied for processing and refining operations • Initial metallurgical testing shows high recoveries Ore Grade Au Categ
Slide 22: Merdeka – Indonesia’s new World Class Mining Company
Merdeka – Indonesia’s new World Class Mining Company Delivering its strategy Actual Forecast 141,468 Au 167,000 Oz Au 160,000 to 200,000 oz Au pa 17,000 t Cu 21,000 to 25,000 t Cu pa 2015 2016 2017 2018 2019 2020 • Wetar Acquisition • Pani Acquisition Drill Results from Wetar • US$ 50 m acquisition
Slide 23: Appendix
Appendix PT Merdeka Copper Gold Tbk. 23
Slide 24: Strong and Reliable Indonesian Shareholders
Strong and Reliable Indonesian Shareholders • With the assistance of the major shareholders, Merdeka obtained all permits and self constructed Tujuh Bukit. • Since gaining control of Finders, significant advances have been made in stakeholder management and permitting (eg. Partalong drilling) • The
Slide 25: Oxide Project Expansion
Oxide Project Expansion Delivers more cash flow over same mine life • Expansion Project increased resource to reserve conversion and maintains higher production levels over the same 9 year mine life from December 2016 with ore mining ending Q1 2025. • Capital expenditure of $US 41 million has been s
Slide 26: Porphyry Copper Project
Porphyry Copper Project Upper High Grade Zone is clear focus for PFS • Upper High Grade Zone “UHGZ” comprising 4 “blocks” of ~75 Mt each; • East, North, West, South blocks; and • Prioritize highest value East block. • Exploration decline development commenced (~ 2,000 meters) and designed to provide
Slide 27: Community
Community Agriculture Improvement Farmer school Duck Rearing Road School Infrastructure Infrastructure PT Merdeka Copper Gold Tbk. 27
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