Pt Amman Mineral Internasional Tbk · IDX:AMMN
Pt Amman Mineral Internasional Tbk — H1 2023 Earnings Presentation
27 slides from Pt Amman Mineral Internasional Tbk's earnings presentation, Sep 29, 2023
Slide 1: PT Amman Mineral Internasional Tbk First Half 2023 Results
PT AMMAN MINERALY INTERNASIONAL TBK (AMMN) First Half 2023 Results 29 September 2023
Slide 2: Speakers
SPEAKERS Alexander Ramlie Dr. Naveen Chandra Lal Irwin Wan Arief Sidarto President Director Director of Business Director of Operations Director of Finance and Commercial
Slide 3: Disclaimer
DISCLAIMER You must read the following before continuing. The following applies to the information following this page, and you (each referred to hereafter as a “Recipient”) are advised to read this carefully before reading, accessing or making any other use of these materials. Any failure to comply
Slide 4: Agenda
AGENDA H1/2023 Overview H1/2023 Smelter Update H1/2023 Operational Highlights H1/2023 Financial Highlights Guidance & Outlook Q&A Appendix 4
Slide 5: A Fully-Integrated Copper and Gold Producer
WHO WE ARE: A FULLY-INTEGRATED COPPER AND GOLD PRODUCER EXPLORATION AND PROCESSING AND MINING SMELTING DEVELOPMENT POWER EXPANSION • Batu Hijau’s open pit life extends by • Phase 7 ore mining through 2024, • Expanding processing plant to more • Construction of a 100%-owned 6 years with processing pl
Slide 6: A Globally Significant Copper-Gold Producer with Large, World-Class Reserves
KEY COMPANY HIGHLIGHTS: A GLOBALLY SIGNIFICANT COPPER-GOLD PRODUCER WITH LARGE, WORLD-CLASS RESERVES Batu Hijau and Elang reserves and resources as of December 2022 Batu Hijau Mine Elang Ore Grades Contained Quantity Copper Gold Copper Gold (Mt) Historical Remaining Expected (%) (g/t) (Mlbs) (Moz) P
Slide 7: Proven Track Record with a Robust Strategy of Continuous Operational Efficiency
KEY COMPANY HIGHLIGHTS: PROVEN TRACK RECORD WITH A ROBUST STRATEGY OF CONTINUOUS OPERATIONAL EFFICIENCY AND VALUE CREATION One of the lowest C1 cash cost operations, Own and control mining and processing driven by the natural endowment of our infrastructure, which results in efficiency and mining de
Slide 8: H1/2023 Operational Highlights: Resilience Despite Exogenous Challenges
H1/2023 OPERATIONAL HIGHLIGHTS: AMMN DEMONSTRATED RESILIENCE DESPITE MULTIPLE EXOGENOUS CHALLENGES AND WILL SURPASS PRE-IPO PRODUCTION TARGET FOR FY 2023 Maintained financial and operational resilience Begun Phase 7 fresh-ore mining earlier • Healthy cash position despite delayed revenues for • Pit
Slide 9: Agenda
AGENDA H1/2023 Smelter Update H1/2023 Smelter Update H1/2023 Operational Highlights H1/2023 Financial Highlights Guidance & Outlook Q&A Appendix 9
Slide 10: On Track to Achieve Mechanical Completion in May 2024
H1/2023 SMELTER HIGHLIGHTS: ON TRACK TO ACHIEVE MECHANICAL COMPLETION IN MAY 2024 KEY FEATURES OF THE SMELTER KEY FEATURES OF THE PMR Smelter output: PMR feed: PMR output: 220,000 tpa 970 tpa 18 tpa 55 tpa 70 tpa Smelter feed: of LME Grade A of anode slime from of gold bullions with of silver bullio
Slide 11: On Track to Achieve Mechanical Completion in May 2024
H1/2023 SMELTER HIGHLIGHTS: ON TRACK TO ACHIEVE Target for mechanical completion in May 20242 Around 4-5 months commissioning period to produce the first refined metals MECHANICAL COMPLETION IN MAY 2024 Key factors to achieve timely completion: 1. Highly experienced Engineering, Procurement, Constru
Slide 12: On Track to Achieve Mechanical Completion in May 2024
H1/2023 SMELTER HIGHLIGHTS: ON TRACK TO ACHIEVE MECHANICAL COMPLETION IN MAY 2024 FLASH CONVERTING FURNACE AND FLASH SMELTING FURNACE OFFSHORE FABRICATION STEAM DRYER - ANODE PREPARATION MACHINE HEAT EXCHANGERS (ACID Kumera Corporation, Finland - METSO, Finland PLANT) - MECS, USA ACID TANK CATHODE S
Slide 13: Obtained Copper Concentrate Export Permit Until May 2024
H1/2023 SMELTER HIGHLIGHTS: OBTAINED COPPER CONCENTRATE EXPORT PERMIT UNTIL MAY 2024 • June 2023: President Joko Widodo visited AMMN's smelter Smelter construction site. The President expressed his satisfaction on Project and overall progress of the project Regulatory • July 2023: The Government of
Slide 14: Agenda
AGENDA H1/2023 Overview H1/2023 Smelter Update H1/2023 Operational Highlights H1/2023 Financial Highlights Guidance & Outlook Q&A Appendix 14
Slide 15: Focused on Pit Cutback, While Processing Continued at Full Capacity
H1/2023 OPERATIONAL HIGHLIGHTS: FOCUSED ON PIT CUTBACK, WHILE PROCESSING CONTINUED AT FULL CAPACITY Ex-pit materials mined by type and mining cost per unit Mill throughput by feed Optimized operations despite Mining cost per ton mined ($/t mined) Waste mined (Mt) Fresh ore unprecedented rainfall Fre
Slide 16: Agenda
AGENDA H1/2023 Overview H1/2023 Smelter Update H1/2023 Operational Highlights H1/2023 Financial Highlights Guidance & Outlook Q&A Appendix 16
Slide 17: H1/2023 Production and Sales Affected by Weather and Export Restriction
H1/2023 FINANCIAL HIGHLIGHTS: H1/2023 PRODUCTION AND SALES WERE AFFECTED BY SEVERE WEATHER DISRUPTIONS AND EXPORT RESTRICTION, WHICH HAVE NOW BEEN RESOLVED Maintained financial resilience despite delayed revenue for four months • Our export permit expired in March and new permit granted in July 2023
Slide 18: Lower Financial Performance in H1/2023 Due to Export Restriction
Net Sales Metals Sold $m Copper sales, net Copper sold (Mlbs) Gold sales, net Gold sold (Koz) 2,831 4.52 1,762 3.56 1,737 4.23 1,852 4.48 2,004 118% H1/2023 FINANCIAL HIGHLIGHTS: 1,609 1,387 LOWER FINANCIAL 1,299 789 -58% 703 322 PERFORMANCE IN 581 98% 1,030 362% 451 -63% 1,222 -59% 341 228 152 598
Slide 19: Maintained Cost Discipline and Prudent Financial Management in H1/2023
H12023 FINANCIAL HIGHLIGHTS: MAINTAINED COST DISCIPLINE AND PRUDENT FINANCIAL MANAGEMENT IN H1/2023 304 Cash opex profile Capex profile 1,283 696 $m $m 218 26% 183 150 908 140 932 436 649 31% 216 Mining, processing and operating costs 606 676 30% 132 Export duty 312 Government royalty 456 Sustaining
Slide 20: Mining and Infrastructure Projects Progressing on Schedule
H1/2023 FINANCIAL HIGHLIGHTS: MINING AND INFRASTRUCTURE PROJECTS PROGRESSING ON SCHEDULE Year 2023 2024 2025 2030 2034 2046 Quarter Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Mining activities Batu Hijau Phase 7 Batu Hijau Phase 8/ Stockpiles Elang project Infrastructure projects In $m Capex required Spent
Slide 21: Bank Loans and IPO Proceeds Help Fund the Expansion
Capitalization per June 30, 2023 Maturity date Balance ($m) Interest rate Notes Cash and cash equivalents 650 Excluding IPO proceeds of approximately $700 m AMNT Working Capital Loan 23-Dec-27 88 SOFR + 3.75% $115 m in total availability Total short-term debt 88 $: SOFR + 3.75% Facility of $1,750 m
Slide 22: Agenda
AGENDA H1/2023 Overview H1/2023 Smelter Update H1/2023 Operational Highlights H1/2023 Financial Highlights Guidance & Outlook Q&A Appendix 22
Slide 23: We Expect to Return to Strong Financial Performance After a Challenging H1/2023
Guidance & Outlook: WE EXPECT TO RETURN TO STRONG FINANCIAL PERFORMANCE AFTER A CHALLENGING H1/2023 H1/2023 Production vs H2/2023 Guidance Pre-IPO Targets 375 FY 2023 Guidance Changes 357 (Released in April 2023) Concentrate production (metric tons) 610,000 537,000 13.6% 234 Copper production (Mlbs)
Slide 24: H2/2023 Outlook and Beyond
Company Outlook and Challenges Increase in export duty1 from 30% of sales deposit Smelter regulation 2.5% to 10% requirement up to 3 update: require months2 US$93 million guarantee deposit3 H2/2023 Outlook and Beyond Source: 1 Peraturan Menteri Keuangan Republik Indonesia Nomor 71 Tahun 2023 Tentang
Slide 25: H2/2023 Outlook and Beyond: Global Copper Market
H2/2023 Outlook and Beyond Global Copper Market1 In the medium term, the global A long-term structural deficit of copper Copper will maintain its key role within Beyond 2026, an anticipated shortfall economy will avoid a recession. market remains intact. the energy transition. The rapid uptake of em
Slide 26: Sustainable Mining to Create a Legacy of Best
Summary SUSTAINABLE MINING TO CREATE A LEGACY OF BEST • AMMN demonstrated its resilience despite multiple exogenous challenges. With this resilience, AMMN will surpass pre-IPO production target for FY2023. • On track to complete the Copper Smelter & PMR Facilities, Processing Plant expansion, and Co
Slide 27: Thank You
THANK YOU
PT Amman Mineral Internasional — H1 2023 Earnings Presentation on 6ix