Pt Merdeka Copper Gold Tbk · IDX:MDKA
Pt Merdeka Copper Gold Tbk — Q2 2021 Earnings Presentation
36 slides from Pt Merdeka Copper Gold Tbk's earnings presentation, August 2021
Slide 1: PT Merdeka Copper Gold Tbk Q2 2021 Update
PT Merdeka Copper Gold Tbk Q2 2021 Update August 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 in Q1 2022 •2 Wetar / Morow
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)1 Net Debt (US$m)2 Hedging 402 228 229 18,000 H2- 185 ounces at 322 2021 294 166 US$1,900/oz 158 150 Gold 36,000 2022 ounces at 135 US$1,900/oz 41 25 2,400 tonnes H2- Copper at 2021 US$10,129/t 2018 2019 2020 H1-21 2018 2019 2020 Q1-21
Slide 6: Improvement in Production
Improvement in Production TB Gold Mine Actual Monthly Production (thousand ounces) 17 17 • The gold production during the first four months of the year resulted from the temporary irrigation of the undamaged portion of pad B, which started 12 on 31 December 2020 • Fresh ore stacking on the new liner
Slide 7: Tujuh Bukit Gold Mine
Tujuh Bukit Gold Mine Production Information Operational & Financial Performance Mining Method 2019 2020 H1 2021 Conventional open pit Unit Actual Actual Actual Metals Gold and silver Open Pit Mining Ore Mined M Tonnes 7.4 6.7 2.3 Mineralisation Type High sulphidation epithermal Waste Mined M Tonnes
Slide 8: 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) 1,900 Mt @ 0.45% Cu & 0.45 g/t Au 1 Underground Decline ~ Contains ap
Slide 9: Wetar Copper Mine
Wetar Copper Mine Production Information Operational & Financial Performance Mining Method Conventional open pit 2019 2020 H1 2021 Unit Actual Actual Actual Metals Copper Open Pit Mining Mineralisation Type Volcanogenic massive sulphide (“VMS”) Ore Mined M Tonnes 2.3 0.5 1.0 Waste Mined M Tonnes 3.8
Slide 10: Wetar: Significant Potential to Extend Mine Life
Wetar: Significant Potential to Extend 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 re
Slide 11: 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. An expansion of acid production from 1 mtpa to 1.2 mtpa per annum is under investigation. Wetar IMIP (Maluku Province) (Morowali, Centra
Slide 12: AIM Project Economics
AIM Project Economics AIM Project Economics (First Plant) Comments • Current resources and heap leach Project Statistics Unit Value inventory support a project life of 22 years. This is expected to be extended Project Life Years 22 over time Average Annual Project Revenue US$m 170 • With capex of US
Slide 13: AIM Project: Illustrative Timeline
AIM Project: Illustrative Timeline 13
Slide 14: 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 15: Growth and Capital Management
Growth and Capital Management Actual Performance Production Cashflow Strategy EBITDA (US$ m) Net Debt (US$ m) • Existing assets • Debt expected to Existing Operations 228 229 generate strong amortized quickly to 185 cashflow over next 5 (4 + years) 158 166 maintain balance sheet 150 years strength.
Slide 16: Appendix
Appendix Z MERDEKA‘# COPPER GOLD
Slide 17: 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 18: Strong and Reliable Indonesian Shareholders
Strong and Reliable Indonesian Shareholders Existing Shareholding Structure Valuation: US$10.0b EV: US$6.4b1 EV: US$2.9b1 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 19: 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 20: 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% (will mature 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 amou
Slide 21: Share Price and Liquidity
Share Price and Liquidity Current Capitalization 12 Month Share Price Performance Share Price (IDR)1 2,960 Shares Outstanding (m) 22,905 Market Cap (IDR) IDR67.80t Market Cap1 ~US$4.68b MDKA included in MSCI Index Net Debt2 US$41m Enterprise Value ~US$4.72b Trading Volume Average Daily Trading Volum
Slide 22: TB Copper Project Latest Drill Results
TB Copper Project Latest Drill Results UHGZ New Drill Holes and Results Comments Selected June and August 2021 Drill Results • The 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 exceeding e
Slide 23: Four of World's Best Copper and Gold Drill Results
TB Copper Project Four of World’s Best Copper and Gold Drill Results over the Last Two Years From To Interval Cu Au No Project Name Company Name Hole ID (m) (m) (m) (%) (g/t) 1 Tujuh Bukit PT Merdeka Copper Gold Tbk UHGZ-21-046 0 636 636 0.8 1.0 2 Tujuh Bukit PT Merdeka Copper Gold Tbk UHGZ-21-045 1
Slide 24: 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 25: TB Near Mine Exploration Open Pit Targets
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 26: 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 27: 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 28: 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 29: 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 30: 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 31: 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 32: 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 33: 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 34: 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 35: Key Financial Figures
Key Financial Figures 2016 – Q1 2021 In US$m 2016 2017 2018 2019 2020 Q1 2021 Revenue 0 129 294 402 322 47 P&L EBITDA (6) 99 158 228 150 25 Net Profit/(Loss) (3) 43 58 69 29 (6) Cash 43 35 14 50 51 277 Other current assets 5 59 141 155 148 154 Fixed assets 240 268 593 647 640 631 Other non-current a
Slide 36: Competent Person's Statement
Competent Person’s Statement The Annual Mineral Resources and Ore Reserves Statement and Explanatory Notes have been compiled by Mr Z Casley. Mr Casley is the Executive General Manager Geoscience, a full-time employee of Merdeka Copper Gold Tbk. He is a Fellow of The Australasian Institute of Mining
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