Pt Archi Indonesia Tbk · IDX:ARCI
Pt Archi Indonesia Tbk — H1 2021 Earnings Presentation
28 slides from Pt Archi Indonesia Tbk's earnings presentation, Aug 3, 2021
Slide 1: PT Archi Indonesia Tbk Investor Presentation Update – 1H21
PT Archi Indonesia Tbk Investor Presentation Update – 1H21 Published Date: 03 Aug 2021
Slide 2: Disclaimer
Disclaimer IMPORTANT: You must read the following before continuing. In accessing the presentation (this “presentation”), you agree to be bound by the following terms and conditions. The materials in this presentation have been prepared by PT Archi Indonesia Tbk (the “Company” or “Archi”) and are ge
Slide 3: Archi at a Glance
Archi at a Glance PT Archi Indonesia Tbk (“Archi”) is the 2nd largest(1) pure-play gold producer in Southeast Asia US$240mm of EBITDA 3.9Moz of Gold Ore Reserves for 2020, with a strong EBITDA and 5.5Moz of mineral resources as of 2020 Margin of 61.1% US$393mm of Significant Revenue Expansion Upside
Slide 4: Asset Overview
Asset Overview Asset / Project Toka Tindung Gold Mine Mineral Resources 5.5 Moz (as of end 2020) PT Meares Soputan Mining (“PT MSM”) & PT Ore Reserves 3.9 Moz (as of end 2020) Operating Companies Tambang Tondano Nusajaya (“PT TTN”); both are wholly-owned subsidiaries of PT Archi Indonesia Tbk Contra
Slide 5: Key Highlights – 1H 2021
Key Highlights – 1H 2021 (30th June 2021) Consolidated revenues was 9% higher at US$142.4mn, compared to US$130.1mn in the same period last year, supported by 1 higher average gold selling price of US$1,802 per oz compared to US$1,656 per oz. 2 EBITDA was 5% higher at US$75.5mn, net profit recorded
Slide 6: Mining, Processing & Production
Mining, Processing & Production Lower gold produced mainly due to lower average gold head grade, despite higher ore processed Total material mined during 1H 2021 increased significantly, due to higher waste removal from a higher grade gold Araren Pit transitioning from stage 3 to the new stage 5.
Slide 7: Exploration Updates
Exploration Updates During 1H 2021, the Company continued to intensify its exploration activities, both in the Eastern and Western Corridor, in order to accelerate the finding of new Mineral Resources and Ore Reserves. Toka Tindung Gold Mine's deposits are classified as low sulphidation epithermal
Slide 8: Downstream Business
Downstream Business Continuous good performance in the gold minting bar business to penetrate domestic retail market In 2019, Archi has started to penetrate downstream business by establishing a 51%-owned JV company, PT Elang Mulia Abadi Sempurna (“EMAS”), which its main business to produce and se
Slide 9: Consolidated Profit & Loss Statement – 1H 2021
Consolidated Profit & Loss Statement – 1H 2021 Selected Key Items In US$ million, For the year ended 30th June Higher revenue and profitability as results from higher unless stated otherwise 2021 2020 % chg average gold selling price Revenue 142.4 130.1 9 Archi’s consolidated revenues of 1H 2021 w
Slide 10: Consolidated Statement of Financial Position – 30th June 2021
Consolidated Statement of Financial Position – 30th June 2021 Selected Key Items In US$ million, As at As at Healthy balance sheets position with low debt to equity % chg unless stated otherwise 30th Jun 2021 31st Dec 2020 (“DER”) level Cash and cash equivalents(1) 16.1 40.2 (60) Approximately US$
Slide 11: Consolidated Statement of Cash Flow – 1H 2021
Consolidated Statement of Cash Flow – 1H 2021 Selected Key Items In US$ million, For the year ended 30th June Strong liquidity to support sustainable operations and unless stated otherwise 2021 2020 chg capital expenditures requirements Net cash flows provided from operating activities 64.4 14.7 49.
Slide 12: AISC and Cost Reduction Initiatives
AISC and Cost Reduction Initiatives All-in Sustaining Costs(1) in 1H 2021 increased to US$1,122 / oz due to higher absolute mining costs In 1H 2021, total absolute mining costs was higher due to higher stripping ratio resulting from pre-stripping of new Araren stage 5 Pit. However, mining costs pe
Slide 13: Debt Repayment Schedule
Debt Repayment Schedule Existing Debt Outstanding Balance Tenor Maturity Interest Rate Covenants (as at 30th June 2021) (Years) Date Total debt/EBITDA < 3.0x Conventional Facility and MMQ (1) DSCR > 1.1x US$367mn LIBOR / JIBOR + 4.00%(1) 5.0 2025 (excl. amortized costs) Project life coverage r
Slide 14: Corporate Action(s)
Corporate Action(s) On the 28th June 2021, PT Archi Indonesia Tbk officially listed its shares on the main trading board of the Indonesian Stock Exchange (“IDX”) through an Initial Public Offering (“IPO”) scheme. Archi’s stocks are traded on IDX main board with ticker code “ARCI”. Sold 3,725,250
Slide 15: Appendix
N \\ Bronead Append Ix
Slide 16: Key Investment Highlights
Key Investment Highlights 1 The 2nd Largest Pure-play Gold Producer in Southeast Asia, with 10 years of Proven Operation Track Record 2 Strong and Proven Exploration Track Record Supports Significant Development Potential and Exploration Upside 3 Structurally Low Cost Base with Proven Track Record o
Slide 17: Mineral Resources & Ore Reserves
Mineral Resources & Ore Reserves Resources and Reserves(1): 3.9 Moz gold reserves and 5.5 Moz gold resources as of 31 December 2020 Tonnage Gold Grade Contained Gold Silver Grade Contained Silver Category (Mt) (g/t) (Koz) (g/t) (Koz) Proven 18.2 1.1 667 2.6 1,521 Reserves Probable 80.1 1.3 3,218 2.6
Slide 18: Growth Strategy – Exploration
Growth Strategy – Exploration Exploration Low Range High Range Targets Tonnage (Mt) Grade (g/t Au) Ounces (Koz) Tonnage (Mt) Grade (g/t Au) Ounces (Koz) Near mine 40 1.5 2,000 54 2.7 4,800 Talawaan 23 2.9 2,100 36 3.6 4,200 Greenfields 36 1.1 1,200 83 1.6 4,000 TOTAL 100 1.7 5,300 173 2.4 13,000 E
Slide 19: Growth Strategy – Processing Plant
Growth Strategy – Processing Plant Upgrade and expansion of the Processing Plant to enable higher processing throughput to become a centralized plant to process ores from both the Eastern Corridor and the Western Corridor. 2021 - 2022 2022 - 2025 Upgrade and expand the Processing Plant capacity to B
Slide 20: Business Overview
Business Overview Exploration Mining Processing Refining Processing Plant Mine Drill & Planning Blast Grade Load & Control Haul Gold Dore Archi’s in-house team undertakes a range of Mining at site is undertaken by Process utilizes a standard exploration activities under the mining contractors using
Slide 21: Strategy to Mitigate Covid-19 Pandemic
Strategy to Mitigate Covid-19 Pandemic Archi has adopted anti-pandemic measures and implemented health and safety guidelines for all its employees to mitigate the impact of COVID-19. Impact of COVID-19 on Archi’s Operations Measures to Mitigate Impact of COVID-19 The COVID-19 pandemic has affected
Slide 22: Key Milestones
Key Milestones Rajawali Group privatized Archipelago Resources PLC and delisted Archipelago Engaged an associate company, PT Geopersada Mulia Abadi (GMA), as the new Resources PLC from the Alternative Investment Market of the London Stock Exchange Plc mining contractor supported with a larger mi
Slide 23: Shareholding Structure
Shareholding Structure 99.99% Public 84.99% PT Wijaya Anugrah Cemerlang 15.00% Archipelago 100.00% 0.01% Resources PTE LTD 0.50% 0.50% 99.50% 99.50% 99.96% 99.99% 51.00% PT Meares PT Tambang PT Jasa PT Elang Mulia PT Karya Kreasi Soputan Mining Tondano Nusajaya Pertambangan Abadi Sempurna(3) Mulia(2
Slide 24: Key Management
Key Management Board of Commissioners Rizki Indra Kusuma Abed Nego Ali Abbas Badre Alam President Commissioner Commissioner Commissioner Appointed as Commissioner in 2020 Appointed as Commissioner in November 2016 Appointed as Commissioner in 2021 Currently Managing Director Legal of PT Raja
Slide 25: ESG Commitment
ESG Commitment Archi will make continuous efforts on sustainable operations and strive to maintain its position as an ESG leader, as recognized by various industry bodies and the Indonesian government. Soil and Mine Management Community Relationship Progressive reclamation of mine sites Maintain
Slide 26: ESG Practice Assessment
ESG Practice Assessment ESG Assessment Results at Toka Tindung Gold Mine On January 2021, Archi engaged voluntarily with PT Lorax Indonesia(1), an independent environmental consultant company, to assess ESG practive in Toka Tindung Gold Mine. The assessment results came out that Toka Tindung Gol
Slide 27: CSR Programs
CSR Programs Social & Cultural Biodiversity conservation Forest conservation Basic foods donation in response to Conservation of Mangrove and Coral Reefs in Worship facilities construction Covid-19 pandemic near-mine areas Health Education Health post centre Scholarship education 1,000-d
Slide 28: Thank You
Thank You For further information, please contact: corsec@archimining.com ; or visit : www.archiindonesia.com 28