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Executive Summary
Overall financial performance in FY 2016 increased compared to FY 2015
Actual ASP was higher than the Budget
1) Revenue, Gross Profit include coal and non-coal sales ; 2) 2016 Unaudited Figures
1) Average Selling Price includes coal and non-coal sales ; 2) Average Cash Costs include Royalty, Barging, SGA; 3) B stands for Budget Figures 4) 2016 Unaudited figures
Revenue (1) 828.3 465.0 555.2 19% Gross Profit (1) 97.0 122.8 212.6 73%
Gross Profit Margin 12% 26% 38%
(in million USD) 2015 FY 2016
(2) Var 2014
Sales Volume (milion MT) 8.9 16.3 13.0 20% Coal Production (million MT) 11.3 14.8 9.8 34% Average Selling Price (US$/MT) (1) 52.1 36.6 42.8 14% Average Cash Costs (US$/MT) (2) 43.2 28.2 29.8 -6%
Var 2015 FY 2016
Executive Summary - continued
4Q16 Coal Production achieved was 3.0 million MT which was lower than Budgeted of 3.7 million MT as the result of WBM’s coal reserves in the
western area have been depleted (CA11). However, the management
has reached an agreement with the neighboring concession holder in
regards of the timing of commencement of mining in the boundary area
(CA12). Management believes that the coal mining should begin towards
the end of the first quarter of 2017.
4Q16 SR was 3.0:1 which was higher than 3Q16 and the Budget as result of the use of opportunistic dozer push and the geotechnical issues on
site at TSA/FKP partially offset with further reduction of WBM as coal
reserves in the western area have been depleted (CA11).
FY Capex was US$ 25.9 million which was lower than Budgeted principally due to delay in commencement of Tabang/ Pakar which has
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Executive Summary - continued
4Q16 Cash costs were US$ 28.0/MT which was lower compared to 3Q16 of US$ 29.8/ MT
• Decrease in Others (Selling) due to ENEL Sales Penalty adjustment in 3Q2016 amounting to US$ 6 million which did not recur in 4Q2016
• Decrease in Salaries and Allowances due to the THR and Bonus distributed in 3Q2016 which did not recur in 4Q2016
Partially offset with:
• Increase in Professional Fees due to various year end accruals for Audit, KSC case (Drew & Napier) and monitoring accountant fees
(Borelli Walsh)
4Q 2016
Overburden Removal
Coal Production
Weighted Average Strip Ratio
Average Cash Costs
Coal Sales
Average Selling Price
Committed & Contractual Sales
Debt and Cash Position
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Overburden Removal (OB)
(million BCM)
Overburden Removal
4Q16 Overburden removal was 9.2 million BCM which was lower than the 4Q16 Budget
9.5 9.3 9.2 reserves in the western area have been depleted (CA11) coupled with geotechnical issue at TSA/FKP mining in the boundary area (CA12)
4Q15 4Q16
Teguh Sinar Abadi/ Firman
Ketaun Perkasa 4.8 4.7 Perkasa Inakakerta 1.1 1.3 Tabang Concessions 2.4 3.1 Wahana Baratama Mining 1.2 0.1
Total 9.5 9.2 (in million BCM) Overburden Removal
Coal Production
(million MT)
Coal Production Volume
4Q16 coal production was 3.0 million MT which was lower than the 4Q16 Budget
3.4 3.0
3.0
4Q15 4Q16B 3Q16 4Q16
3.7 4Q16 coal production was
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Actual Weighted Average Stripping Ratio (SR)
Weighted Average Strip Ratio
4Q16 actual weighted average strip ratio of 3.0 : 1 which was slightly decreased than 3Q16 and 4Q16 Budget than 4Q15 due to the higher SR at TSA/FKP as result of the use of opportunistic
dozer push and the
geotechnical issues on site
Average Cash Costs per MT(*)
Average Cash Costs
(1) Average Cash Costs include Royalty, Barging, SGA
(2) US$ is a convenience translation using the average quarterly exchange rate for the quarter numbers
(3) B stands for Budget Figure
(
Higher sales volume which decreased certain unit cost as follows:
Salaries, wages and
allowances under other costs and general and
administrative cost
Coal mining & hauling
4Q146 Cash Costs were principally in line with the Budget
39.6
29.8 28.0
4Q15 2016B 3Q16 4Q16
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million MT which was higher than 3Q16, 4Q15 and 4Q16B due to Volume) are Thermal Powertech, TNB Fuel, ADANI
Top customers YTD (by sales volume) are: ADANI, TNB Fuel, and CV Sumber Sarana Indah
4Q16 coal sales volume was 3.9million MT which was higher than 4Q16 Budget
Note : B stands for Budget Figure
Geographic Distribution (4Q16)
Average Selling Price (ASP)
Average Selling Price (*)
4Q16 ASP was US$ 45.7/ MT which was higher than 4Q16 ASP Budget
(1) ASP includes coal and non-coal sales
(2) US$ is a convenience translation using the average quarterly exchange rate for the quarter numbers
(3) B stands for Budget Figure
* higher benchmark prices as temporary production cuts in China and a continued rainy season in Indonesia which has made supply become tight.
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Committed and Contracted Sales
2017
Fixed Price Floating Price
13.2 million MT
55%
45%
Note : January 2017
As at 31 January 2017 committed and contracted sales were 13.2 million MT with an average CV of 4,600 GAR kcal
Net Debt and Cash
As of 31 December 2016, the total TLF Loan was US$ 484.2 million 444.1
Note : Total Net Debt and Cash + Debt Service Reserve Account (DSRA)
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Capital Expenditure
CAPEX (*)
3Q14 ASP was US$ 67.6/ MT which was within the range of the 2014 Budget
US$ is a convenience translation using the average annual exchange rate; B stands for Budget Figure
*
CAPEX YTD WAS US$ 25.9 million:
CIP in IP and BR for the
construction of the Tabang/Pakar haul road and related
infrastructure
Majority of capex is anticipated to be spent as equipment mobilization and construction in the Tabang project gains momentum
48.2
25.9
PT Perkasa Inakakerta PIK
PT Teguh Sinarabadi TSA
PT Firman Ketaun Perkasa FKP
PT Wahana Baratama Mining WBM
PT Fajar Sakti Prima FSP
PT Bara Tabang BT
PT Brian Anjat Sentosa BAS
PT Tanur Jaya TJ
PT Silau Kencana SK
PT Orkida Makmur OM
PT Tiwa Abadi TA
PT Sumber Api SA
PT Dermaga Energi DE
PT Bara Sejati BS
PT Apira Utama AU
PT Cahaya Alam CA
PT Mamahak Coal Mining MCM
PT Bara Karsa Lestari BKL
PT Mahakam Energi Lestari MEL
PT Mahakam Bara Energi MBE
PT Graha Panca Karsa GPK
Tabang
Pakar
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Appendix
Kangaroo Resources Limited KRL
PT Dermaga Perkasapratama DPP
PT Indonesia Pratama IP
PT Muji Lines Muji
PT Bayan Energy BE
PT Metalindo Prosestama MP
PT Sumber Aset Utama SAU
Disclaimer
This presentation contains forward-looking statements based on assumptions and forecasts made by PT. Bayan Resources Tbk management. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and speak only as of the date they are made. We undertake no obligation to update any of them in light of new information or future events.
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