Borneo Lumbung Energy & Metal

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PT Borneo Lumbung Energi & Metal Tbk (“BORN”)
Company Presentation
June 2012
Disclaimer
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2
Agenda
1
Overview of BORN
2
BORN’s results and plans
3
BORN’s Investment in BUMI Plc
3
1. Overview of BORN
4
Introduction to BORN
From a greenfield concession acquired in 2008, BORN developed AKT's CCOW
into Indonesia's largest and most important coking coal producer
Current Corporate Structure
 BORN is a holding company, with all of its coking
coal operations conducted through PT Asmin
Koalindo Tuhup (“AKT”)
PT Republik Energi & Metal
Public
 AKT holds a 3rd generation Coal Contract of Work
(“CCoW”) with favourable terms
 PT Borneo Mining Services (“BMS”) owns mining
70%
30%
equipment that it rents to AKT
 BORN listed on the Indonesian Stock Exchange
PT Borneo Lumbung Energi & Metal TBK
Market Cap of US$1,453MM(1)
on 26 November 2010
 Produced more than 3mt of hard coking coal in
2011
99.9%
 Completed acquisition of 23.8% stake in BUMI Plc
PT ASMIN
KOALINDO
TUHUP
on 20 January 2012 (3)
(CCoW)
Notes:
1 As of 16 May 2012 at current exchange rates
2 As of 12 February 2012 at an exchange rate of 1 USD to 0.63 GBP; total shares of 241.0mm including nonvoting shares of 60.4mm
3 23.8% stake is held indirectly through two joint ventures with the Bakrie Group
5
99.9%
PT BORNEO
MINING
SERVICES
23.8% (3)
BUMI Plc
Market Cap of
US$2,866MM (2)
Experienced and Professional Management Team
 Professional and diverse management team with extensive experience in world class firms
 Deep expertise in all areas of mine development, engineering and operations
Samin Tan
Founder
Alexander Ramlie
President Director
Peter Rod
AKT’s Head of Mining
Operations
Ken Allan
Marketing Director
Eva Novita
Finance Director
Dave Alister Tonkin
AKT’s Operations Director
6
Borneo’s Vision
Creating Long Term Value for Shareholders
 To be a world class mining company with a diversified portfolio of high quality coal and metals
assets with the following characteristics :
― High margin products
― Large resource base
― Low production cost
― Create value through developing greenfield assets
 Drive value through aggressive production ramp ups, continuous productivity improvements,
judicious use of available financing and capital, and strategic acquisitions
Create long term value for the benefit of all shareholders and stakeholders
7
History of BORN
Within 3 years of Greenfield Acquisition, BORN Achieved Profitability
Proven Track Record of Growing Reserves and Resources
mt
 Resources CAGR
400
 Reserves CAGR
(1):
(2):
16.5%
32.1%
378.7
319.8
268.9
300
244.9
222.7
200
127.6
192.0
146.1
100
127.6
0
Nov 2005
Feb 2006
Proven
 31 May 1999,
AKT signed
the 3rd
Generation
CCoW
1999
Jan 07
 2 Jan 2008,
 Sep 2009,
start of
development
and construction
Jan 08
Probable
AKT
commenced
commercial
production
Jan 09
147.1
155.2
43.3
76.9
22.9
20.4
Apr 2007
76.6
246.7
131.8
67.5
69.2
35.2
32.3
32.7
36.5
89.7
Feb 2009
Inferred
 31 Dec 2009,
 Production capacity
increased
production capacity
to 2.4 mtpa at the
Kohong block
increased to
3.6mtpa in 2010 at
the Kohong block
Jan 10
Jan 11
 Nov 2010, listed
BORN gained
full management
control of AKT
on IDX and
raised
US$580MM
Notes:
1 CAGR calculated from 2005-2011
2 CAGR calculated from 2007-2011
8
172.7
65.8
Sep 2011
Jun 2010
Measured & Indicated
 27 Oct 2007,
65.9
132.1
 Sep 2011, reserves
increased to 132 mt
representing 90.4%
growth from 70 mt
in June 2010
Jan 12
 Jan 2012,
completed
23.8%
investment
in BUMI Plc
Future:
Increase production
capacity to 10.0 and
15.0 mtpa by end of
2013 and 2018,
respectively
The Concession
Tremendous Production Upside and Long Reserve Life
 Holds two coking coal
deposits - Kohong and
Telakon blocks, within
21,630 hectares of
concession area
 JORC compliant
Reserves and
Resources of 131.8 mt
and 319.8 mt,
respectively,
― Equivalent to 28.6x
(28.6 years)
forecast production
in 2012 of 4.4
million tonnes
 CCoW production
JORC Mineable Reserves at September
2011
JORC Resources
(mt)
Proved
Probable
Total
(mt)
Measured
Indicated
Inferred
Total
Kohong
54.2
51.2
105.4
Kohong
64.2
69.0
114.0
247.2
Telakon
11.6
14.7
26.4
Telakon
11.8
27.7
33.1
72.6
Total
65.8
65.9
131.8
Total
76.0
96.7
147.1
319.8
permitted until 2039
 Production share
(“Royalty”) 13.5%
9
BORN - Logistical Solutions
Increase Self-sufficiency And Decrease Reliance On The Barito River
Haul Road (112 km)

Alternative transportation route
through Mahakam River a possible
medium/long term solution

Haul road from mine to Melak port

8,000 tonne barges can be operated
all year round

ISP at Damparan, to AKT design,
1MT stockpile, 3,000tph unload,
4,000tph loading capacity

On-river transshipment capability
from 4,000 to 8,000 tonne barges
Mahakam River (355 km)
Existing logistics - Haul Road (36 km)
Existing logistics - Barito River (290 km)
Existing logistics - Barito River (272 km)
Taboneo
anchorage
10
2. BORN’s results and plans
11
Financial Highlights
In US$ Million
2009 A
2010
2011
Q1 2012
Current asset
32
368
990
854
Non current asset
451
580
706
1,780
Total asset
483
948
1.695
2,634
Loans from 3rd parties
329
32
410
1,396
Total liabilities
477
216
760
1,693
Total equity
6
732
936
942
Sales
22
303
693
123
EBITDA
9
145
360
52
Operating Income
6
103
289
31
-11
38
213
12
Net Debt to Equity*
54.8X
0.04X
0.06X
1.1X
EBITDA to Net Debt*
0.02X
4.62X
5.81X
4.13X
EBITDA margin
41%
48%
52%
42%
Operating margin
27%
34%
42%
25%
-
12.5%
30.7%
10%
Net income
Net income margin
12
Note:
* Net Debt after
deducting
preshipment facility of
USD 345 Million
Strong Operational and Financial Performance
BORN Achieved One of the Highest Production, Revenue and Earnings Growth in Industry
Production (FYE Dec)
Revenue (FYE Dec)
000 tonnes
Rp Bn
US$ Million
EBITDA (FYE Dec) (2)
% margin
8.6
306.1
693.1
Net Income (FYE Dec)
Rp Bn
US$ Million
22.3
146.8
Rp Bn
359.6
US$ Million
Notes:
1 EBITDA is operating profit plus depreciation and amortisationc
13
% margin
(11.1)
38.8
213.3
Strong Operational and Financial Performance (Cont’d)
Peer Leading EBITDA Margin
BORN has the highest margin in Indonesia due to its superior coal product
 BORN aims to be the industry leader in profit margin
%
50
40
30
Strong
Operational
and Financial Performance (Cont’d)
47
20
38
36
34
33
31
31
31
28
28
10
an
ay
B
an
pu
B
G
IT
M
ak
B
U
M
B
IR
S
ou
es
ar
i
s
rc
e
m
ar
u
H
er
au
B
da
ro
A
uk
it
A
B
ss
O
R
N
am
0
Source: Bloomberg Estimates for FY11
Note:
1 BORN’s EBITDA Margins are net of royalty payments; it’s tax rate is amongst the lowest (~25%) and hence even on Net Margin basis it is superior to other Indonesian coal producers
14
2011 Snapshot #
Production
3.28mt
Sales
3.007mt
ASP
Margin
EBITDA
Update for 2011 :
Ramp up to 5mt, done
Additional mining ops staff
Additional pits opened
ISP now operational
CHPP stockpile expanded
Port stockpile expanded
New camp mostly done
New magazine, done
New workshops mostly done
Airstrip finished
Haul road sealing ongoing
New markets (Europe)
Pinjam Pakai
US$ 230/t
47%
US$360m
15
Operations Overview
Key Operating Statistics And Future Ramp-Up
Aggressively ramp up production
Production as of FYE Dec
Key Operating Statistics
($ MM)
2009
2010
2011
880
1,950
3,258
15.1:1
16.5:1
16.5:1
Sales (000 tonnes)
210
1,650
3,007
Average Sales Price (US$/mt)
168
185
230
Cash Cost (US$/mt, Excl. Royalties and
Marketing)
88
70
77
Total Cash Cost (US$/mt,
Incl. Royalties and Marketing)
121
103
117
Production (000 tonnes)
Strip Ratio (bcm/mt)(1)
(2)
Long term production capacity target: 15.0 mtpa
 Phase 2: From 5.0 mtpa to 10.0 mtpa -> 2H2012 – 2015
 Phase 3: From 10.0 mtpa to 15.0 mtpa -> 2014 – 2016
 Will be achieved through a combination of expanding current production at Kohong block, bringing Telakon into
production and further exploration to expand reserves and resources at both blocks
 Cash cost reduction program to be achieved through installation of IPCC system
Notes:
1 First coal – September 2008; first commercial production – September 2009
16
Q1 2012 Outstanding Debt Overview
PT Borneo Lumbung Energi
(“BLE”)
Total debt outstanding: US$1 Billion
Standard Chartered Bank Acquisition
Loan for Bumi Plc Investment

99.99%
99.99%
PT Asmin Koalindo Tuhup
(“Tuhup”)
US$ Million
PT Borneo Mining Services
(“BMS”)
Loan
Pre-shipment
Outstanding 3rd party loan
US$27.5 million
Outstanding 3rd party loan
US$ 382.2 million
Leasing
Total

US$ 20.5 million JBIC from CIMB Niaga
 US$ 4 million leasing from ANZ
 US$ 1 million leasing from other various
lease companies

US$ 345 million FGB Pre-shipment Loan
 US$ 27.5 million leasing from ANZ
 US$ 0.7 million leasing from Indomobil
Finance
Net Debt Maturities (2012E – 2016E)
(US$ in millions)
529
70
2012
143
157
160
2013
2014
2015
17
2016
Total
Exposure
Net
Debt
1.020
1.020
345
-
31
32
1.396
1.052
Next steps
Next ramp up –
Second barge loader started
ISP stockpile expansion
Floating crane commitment
DP’s on ramp up fleet paid
Tugs/Barges ordered (7
new)
Open new pits
Add operational staff
Switch to Noble ?
New markets (Korea, India,
domestic)
Pinjam Pakai, licences
Infrastructure expansion
Caterpillar 6090 x 11 units
Liebherr 996 x 14 units
Buchyrus RH200 x 2 units
Komatsu 830E x 30 units
Komatsu HD1500 x 10 units
Tugs/Barges x 25 units
Cranes x 10 units
Infrastructure (port, dumps, pits,
people, roads, training center..)
18
BORN Capex Program Up to 10 mtpa
(US$ in millions)
(US$ in millions)
Breakdown of 2012F-2013F Capex
350
37.0
83.0
550.0
250.0
11.0
4.0
50.0
283.0
197.5
330.0
25.0
220.0
97.0
172.3
147.0
10.0
56.2
87.6
Facilities & Mining Equipment
38.5
17.7
2009
9.4
2010
Infrastructure expansion
25.2
30.0
20
2011
2012F
2013F
Additional mining equipment
Infrastructure
Excavators
Mine Camp & Workshop
Dump & Hauling Trucks
CHPP, ISP and Port Stockpile
Dozers,Graders &
Supporting Equipment
Port
Crusher, Conveyor, Fuel Tanks,
Explsoives Magazine
Washing Plant & Power Station
Estimated equipment purchase and infrastructure construction value at 31 March 2012
19
Q1 2012 Operating Results
1Q12
1Q11
FY12
FY11
Production (000 tonnes)
650
950
4,400
3,306
Strip Ratio*
20
16
18
17
(000 tonnes)
640
900
4,400
3,008
Average Sales Price US$/t
190
225
219
230
Production Cash Cost US$
(Exc. Royalties and Mktg)
89
75
78
77
Total Cash Cost US$
(Inc. Royalties and Mktg)
116
113
116
117
Sales
* Life of Mine SR = 20:1
20
1Q12
2Q12
3Q12
4Q12
FY12
Production (000 tonnes)
650
850
1,440
1,410
4,400
Strip Ratio*
20
18
16
17
17
Sales (000 tonnes)
640
910
1,450
1,350
4,400
Average Sales Price US$/t
190
200
220
230
219
Production Cash Cost US$
(Exc. Royalties and Mktg)
89
85
78
75
79
Total Cash Cost US$
(Inc. Royalties and Mktg)
116
116
114
114
115
21
The Future
2012
2013
2014
2015
2016
5mt
10mt
10mt
12mt
15mt
Production 4.6mt
7mt
8mt
10mt
12.5mt
Sales
4.6mt
7mt
8mt
10mt
12.5mt
ASP
$219/t
$210/t
$200/t
$190/t
$180/t
Costs
$115/t
$115/t
$110/t
$100/t
$80/t
The Plan :
Capacity
22
Challenges:
World markets/prices
New customers
Indonesian regulations
- HBA
- DMO
- Value Added
- Law No 4 compliance
- PP24 (divestment)
Managing ramp up
Staffing quality/levels
Coal quality
Competition
Environmental
BORN’s Competitive Positioning
1
Favorable Coking Coal Industry Outlook
2
Advantageous Terms of 3rd Generation CCoW
3
Premium Hard Coking Coal Product
4
Close Proximity to Largest and Fastest Growing Markets
5
Strong Operational and Financial Performance
6
Experienced Management Team
23
Close Proximity to Largest and Fastest Growing Markets
Significant cost and delivery time advantages to large end users in East Asia and
India
Estimated Shipping Time to Destination & Cost per Tonne
South
Korea
Japan
Producers
Estimated time to
destination (Days)
Estimated cost
per tonne (US$/t)
Japan
7-9
6-9
China
8-10
7-9
Japan
10-13
10-14
China
12-15
11-15
Japan
14-16
12-32
China
15-18
14-28
Japan
27-33
17-25
China
29-35
20-27
Destination
China
Taiwan
India
Indonesia
Australian coking
coal companies
Source: Wood Mackenzie, Trade Data
24
Premium Hard Coking Coal Product
Consistently Achieved ASP Similar To Australian Hard Coking Coal
Tuhup Coal is considered a premium hard coking coal product with very high
vitrinite content, which is rare
More Favorable
Less Favorable
% adb
12
Ash
6.6
7.0
7.3
8.5
8.9
9.5
10.0
10.0
10.5
Wesfarmers
Rio Tinto
BMA
Teck
Coal of Africa
Mechal
Riversdale
0.7
0.8
1.0
1.7
Riversdale
Coal of Africa
Consol Energy
26.8
29.9
37.0
Teck
Coal of Africa
Consol Energy
6
0
Consol Energy
% adb
Sulphur
2
1
0
0.4
0.4
0.4
0.5
0.5
Mechal
Rio Tinto
Teck
Wesfarmers
BMA
18.5
20.7
21.5
23.1
24.3
Mechal
Rio Tinto
Wesfarmers
Riversdale
BMA
9.0
9.0
9.0
9.0
8.0
8.0
7.5
7.0
6.5
Riversdale
Mechal
BMA
Wesfarmers
Consol Energy
Rio Tinto
Teck
750
450 (+)
350
251
100
Rio Tinto
Riversdale
Wesfarmers
% adb
Volatile Matter
Caking Properties
(Crucible Swelling
Number or “CSN”)
50
25
0
12
6
0
Coal of Africa
ddpm
15,000
Fluidity
15,000
11,600
1,100
1,000
26.5
18
0
Consol Energy
Coal of Africa
BMA
Teck
Source: AME
25
Mechal
Tuhup Coal Reputable Customers and Diversified Destinations
China
General Nice
China
General Nice, Zhonglian, Zhejiang
Materials Industry Fuel Group
China
Baosteel, Wanxiang, Shente, CNBM,
General Nice
Turkey
Erdemir
Turkey &
Romania
DBK, Erdemir
India
Tata Steel, Apex Energy Res.
India
Tata Steel, Taurian
Japan
Nisshin Steel, Nippon Steel
Japan
Nisshin Steel, JFE
Taiwan
China Steel
Taiwan
China Steel, Dragon Steel
Korea
Hyundai Steel
Vietnam
Trungdung Trading
Vietnam
Tin Thinh Phat Company Ltd
 Glencore marketing agent up to July 2012
 Noble bought the Company’s production starting November 2011
26
Favourable Coking Coal Industry Outlook
Asia Continues To Drive Imports And Australia Remains Key Exporter
Globally Traded Coking Coal Imports
Globally Traded Coking Coal Exports
mt
mt
Japan
China
Europe
India
Other SE Asia
Other
South Korea
Americas
Source: Wood Mackenzie
Australia
USA
Canada
Russia
China
Indonesia
Mozambique
Other
Source: Wood Mackenzie
27
Favourable Coking Coal Industry Outlook (Cont’d)(1)
Fast Growing Demand in China and India
Coking Coal Imports (Asia)
Coking Coal Imports (China)
mt
mt
Coking Coal Imports (SE Asia)
Coking Coal Imports (India)
mt
mt
Note:
1 % shown represents countries / regions’ imports as % of global imports
28
Only Listed Hard Coking Coal Producer in Indonesia
Listed Indonesian Coal Producers (1)
Coal Type
MCap
(US$MM) (2)
ACEH
EAST
KALIMANTAN
3
1 BORN
Hard Coking
1,700
2 BUMI
Thermal
5,743
3 ATLAS
Thermal
488
4 ADARO
Thermal
7,074
5 BAYAN
Thermal
6,702
6 BERAU
Thermal
1,657
6
NORTH
SUMATRA
10
WEST
KALIMANTAN
RIAU
Thermal
2,310
8 INDIKA
Thermal
1,353
4,985
10 PTBA
Thermal
5,199
11 SAKARI
Thermal
2,193
11
9 5
3 5
CENTRAL
KALIMANTAN
10
9
9
8
4
4
BENGKULU
Thermal
5
2
9
2
9 ITMG
7
1
WEST
SUMATRA
JAMBI
7 HARUM
5
5
10
3
10
SOUTH
SUMATRA
3
SOUTH
KALIMANTAN
2
5
11
9
LAMPUNG
Hard Coking Coal (Listed Entity)
Thermal Coal (Listed Entity)
Source: Bloomberg, Company Fillings, Broker Reports
Notes:
1 Market capitalization greater than US$400MM
2 As at 8 Feb 2012
29
3. BORN’s investment into Bumi Plc
30
Transaction Overview
BORN completed its 23.8% investment in BUMI Plc, one of the largest diversified
coal and metals companies in the world, on 20 January 2012
Transaction

Investment of a 23.8% strategic interest in BUMI Plc

Post transaction, BORN, together with PT Bakrie & Brothers Tbk (“BNBR”) and Long Haul Holdings Limited
(“LH”), owns a 47.6% economic interest and a 29.99% voting interest in BUMI Plc (1)

BUMI Plc (listed on the LSE with a current market capitalisation of US$2.9 bn) is a leading thermal coal
player owning (2) :
Target
Overview
Purchase
Consideration
Corporate Governance
―
29% stake in PT BUMI Resources Tbk (“BUMI Resources”), the largest thermal coal producer in
Indonesia,
―
85% stake in PT Berau Coal Energy Tbk (“Berau”), the 5th largest thermal coal producer in Indonesia,
―
Interests in a diversified metals portfolio through BUMI Resources’ 87% ownership of its listed
subsidiary PT BUMI Resources Minerals Tbk (“BRM”)

US$1.0 bn (valuing BUMI Plc at GBP10.91 per share at the date of the announcement) paid fully in cash (3)

Transaction is 100% funded through a US$1.0 bn amortizing senior debt facility provided by Standard
Chartered Bank

BORN has right to nominate professional management and directors to BUMI Plc’s board
Notes
1 Voting interest calculated based on voting capital of 181 m shares
2 As of 8 February 2012 at an exchange rate of 1 USD to 0.63 GBP, including nonvoting shares for a total of 241.0mm shares
3 Price per share in GBP based on exchange rate of 1 USD to 0.62 GBP on 31 October 2011
31
Transaction Structure And Governance Framework
Strong New Governance Rights At All Levels
 BORN will have active participation in the management of BUMI Plc and key underlying operating companies
 BORN is well positioned to meaningfully realize value for all shareholders by virtue of its own impressive track
record in Indonesia
Transaction Structure
BORN
Sellers
BORN
51.0%
49.0%
49.0%
(Comprised of
voting ordinary
shares)
Sellers
(Comprised of
suspended
voting ordinary
shares)
JV 1
22.5% (1)
BUMI
Plc
Note
1 Stakes based on BUMI Plc’s total share capital of 241 million shares
32
51.0%
JV 2
25.1% (1)
Others
52.4% (1)
Overview of BUMI Plc
Access to World Class Coal and Mineral Assets
 Combined coal reserves of
Current Corporate Structure (1)
3.3bn tonnes with combined
production of 78mt in 2010
BORN & BNBR
& LH
― 9M 2011 production of 62mt
10%
48%
― Production expected to reach
140mt in 2014
reserves expansion; only
70% of KPC’s concession
area explored
port facilities
― All operations within 20km of
coast
Founders (2)
10%
Others
32%
BUMI Plc
Market Cap of US$2,866MM (3)
― Significant potential for
 Open cut mining with dedicated
PT Bukit
Mutiara
85%
29%
Berau
Market Cap of US$1,612MM (4)
BUMI Resources
Market Cap of US$5,359MM (4)
5th largest coal producer in Indonesia with FY11
production of 20mt

Largest thermal coal producer in Indonesia

Total coal reserves: 2,860mt (5)

Total coal reserves: 467mt

Coal concession area: 188,007 ha

Coal concession area: 118,400 ha

License Expiry Dates: 2018 - 2039

License Expiry Date: 2025

87%
 Diversified portfolio of first class
metals
BUMI Resources Minerals
Market Cap of US$1,631MM (4)
Source: BUMI Plc, BUMI Resources and Berau Filings

Note
1 Based on total TSO of 241.0mm, including 60.4mm nonvoting shares
2 Nathaniel Rothschild holds 8.8% of total shares
3 As of 12 February 2012 at an exchange rate of 1 USD to 0.63 GBP, including nonvoting shares for a total of 241.0mm shares
4 As of 12 February 2012 at an exchange rate of 1 USD to 9,091 IDR
5 Includes KPC, Arutmin, Pendopo and FBS
33
Diversified portfolio of first class metals
assets in Indonesia and Africa
Transaction Rationale
World Class Internationally Diversified Mining Company
Opportunity to acquire a well known high quality asset that is immediately earnings
accretive
BORN
Transaction Objectives - BORN
Diversification of Product Portfolio

Access to world class thermal coal and metal assets, with well
established business models and strong cash flows
Hard Coking Coal
2011 Expected Sales: 3.46 mt(1)
Market Cap: US$1.7 bn(2)
Transaction Objectives - Combination
World Class Diversified Mining Company

World’s largest sea-borne thermal coal producer
BUMI Resources

Thermal Coal
2011 Expected Sales: 83 mt(1)
Market Cap: US$5.4 bn(2)
Well diversified product portfolio across hard coking coal, high
grade and low rank thermal coal

Valuable assets in the metals segment comprising of gold,
copper, zinc, iron ore, lead
BUMI Resource Minerals
Stake in a World Class Thermal Coal Asset

Investment into 1st and 5th largest thermal coal producers in
Indonesia

Combined reserves and production of both companies stand at
3.3 bn tonnes and 85m(3) tonnes respectively
Gold, Copper, Zinc, Iron Ore
Resources
Market Cap: US$1.6 bn(2)
Highly positive demand and price outlook for global thermal
coal

Indonesian proximity to key markets and position as the world’s
largest supplier of thermal coal

Berau
Systematic ramp-up, cost synergies, and acceleration of
exploration, development and production of greenfield assets
Thermal Coal
2011 Expected Sales: 20mt
Market Cap: US$1.6 bn(2)
Access to the Growing Thermal Coal Market

Shareholder Value Creation
Global Indonesian Natural Resources Company
BORN
Hard Coking Coal
High CV Thermal Coal
Low CV Thermal Coal
Non Coal assets
Gold, Copper, Zinc, Iron Ore
Note
1 2011 expected sales annualized from 2011 interim results
2 As of 12 February 2012 at an exchange rate of 1 USD to 9,091 IDR
3 Expected 2011 production
34

Positions the combined group as the largest Indonesian mining
company in the world in terms of production
Transaction Rationale (Cont’d)
Diversified Across Coal and Metals
Berau
Telakon
Type: Development
Reserves: 26 mt
Resources: 73 mt
Type: Production
Reserves: 467 mt
Kaltim Prima Coal
Dairi Prima Minerals
Type: Development
Reserves / Resources: 11 mt / 25 mt
Grade: 11.5% Zn, 6.8% Pb
Type: Production
Reserves: 1,422 mt
Kohong
Type: Production
Reserves: 105 mt
Resources: 247 mt
Gorontalo Minerals
Type: Exploration
Mineral Inventory: 125 mt
Grade: 0.55 g/t Au, 0.75 Cu
BUMI Mauritania
Mineral Inventory: 100 mt
Grade: 60% Fe
INDONESIA
AFRICA
Pendopo
Konblo BUMI (Liberia)
Fajar Bumi Sakti
Type: Exploration
Reserves: 687 mt
Type: Exploration
Type: Exploration
Reserves: 282 mt
Newmont Nusa Tenggara
Type: Production
Reserve: 7.7 bn lbs copper, 7.7 mm oz
gold
Grade: 0.6% Cu, 0.5g/t Au (phase 6)
Coking Coal
Producing assets
Thermal Coal
Arutmin
Citra Palu Minerals
Type: Production
Reserves: 469 mt
Type: Exploration
Mineral Inventory: 2.5 mt gold, 106 mt moly
Grade: 7.5 g/t Au, 0.14% Moly
Diamond, Precious Metals
Held by BUMI Plc and its subsidiaries
35
Zinc, Lead
Iron Ore
Copper & Gold
Held by Borneo Lumbung Energy and its subsidiaries
Gold, Moly
Financial Impact On BORN
BUMI Plc’s investment is immediately earnings accretive for BORN
Pre Transaction (Sep 2011)
Post Transaction (Pro forma as at Sep 2011)
Post Transaction Multiples
Debt
US$MM
68
Debt
US$MM
1,068
Cash
US$MM
207
Cash
US$MM
207
Net debt
US$MM
(139)
Net debt
US$MM
861
Equity
US$MM
890
Equity
US$MM
890
Gross Debt / EBITDA (2011E)(1)
x
3.2x
Net debt / EBITDA (2011E)(1)
x
2.6x
Net debt / Equity
x
1.0x
Source: Bloomberg, Company Presentations
BORN Expected EPS Accretion for FY2012E and FY2013E (2)
(US$MM)
FY2012E
FY2013E
400
300
Net
Income (3)(4)(5)
400
286
253
300
200
200
100
100
0
276
0
Standalone
EPS
350
Proforma
Standalone
US$0.016
US$0.015
13.1%
US$0.014
Proforma
26.6%
US$0.020
Notes:
1 EBITDA (2011E) equal to c.US$ 332 m based on Bloomberg mean estimate
2 EPS forecasts for BORN standalone based on mean of brokers’ consensus as indicated on Bloomberg the day prior to announcement of the transaction (31 Oct 2011). EPS forecasts for BUMI Plc based
on mean of brokers’ consensus as indicated on Bloomberg on 10 Feb 2012
3 BORN’s effective economic interest of 23.8% in BUMI Plc
4 All-in cost of c.7% p.a. for acquisition debt taken by BORN to finance the acquisition
5 Assumes no additional equity issuance
36
Thank you
Q’s ?
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