PT Borneo Lumbung Energi & Metal Tbk (“BORN”)
Company Presentation
PT Borneo Lumbung Energi & Metal Tbk (“BORN”)
Company Presentation
Disclaimer
This presentation is prepared by PT Borneo Lumbung Energi & Metal Tbk (the “Company”) solely for the purpose of investor presentations and unless otherwise expressly authorized by the Company, shall not be used by any third party. The recipient of this presentation shall only use the information contained herein solely in the context of obtaining information about the Company and/or updating such information and not for any other purposes, commercial or otherwise. This presentation does not constitute or form part of any offer for sale or invitation, or solicitation of an offer, to subscribe for or purchase any securities and neither this presentation nor anything contained herein shall form the basis of or be relied on in connection with any contract or commitment whatsoever. The information set out herein is not and does not purport to be an appraisal or valuation of any of the securities, assets or businesses mentioned herein. You acknowledge that any assessment of the Company that may be made by you will be independent of this document and that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company.
This presentation contains “forward-looking” statements that relate to future events which are, by their nature, subject to significant risks and uncertainties. All statements, other than statements of historical facts contained in this presentation, on the Company’s future financial position, strategy, plans, goals, and targets, future developments are forward-looking statements. The future events referred to in these forward-looking statements involve known and unknown risks,
uncertainties and other factors, many of which are beyond our control, which may cause the actual results to be materially different from those expressed or implied by the forward-looking statements. These forward-looking statements are based on numerous assumptions regarding our present and future business strategies and the environment in which we operate and are not a guarantee of future performance. Any reference to past performance should not be taken as an indication of future performance. The Company makes no representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved, and such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or standard scenario, nor any liability therefore (including direct, indirect or consequential loss or damage).
You agree to keep the contents of this presentation strictly confidential. This presentation material is highly confidential, is being presented solely for your
information and may not be copied, reproduced or redistributed to any other person in any manner. In particular, this presentation may not be taken or transmitted into the United States, Canada, Indonesia or Japan or distributed, directly or indirectly, in the United States, Canada, Indonesia or Japan. The Company does not intend to register any of its securities for offer or sale in the United States, or to conduct a public offering of securities in the United States.
Certain data in this presentation was obtained from various external data sources, and the Company has not verified such data with independent sources.
Accordingly, the Company makes no representations as to the accuracy or completeness of that data, and such data involves risks and uncertainties and is subject to change based on various factors.
The information contained in this document is as of 31 May 2012. Neither the delivery of this document nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since that date.
1
BORN’s results and plans
2
Overview of BORN
Agenda
Introduction to BORN
BORN is a holding company, with all of its coking
coal operations conducted through PT Asmin
Koalindo Tuhup (“AKT”)
AKT holds a 3rd generation Coal Contract of Work
(“CCoW”) with favourable terms
PT Borneo Mining Services (“BMS”) owns mining
equipment that it rents to AKT
BORN listed on the Indonesian Stock Exchange
on 26 November 2010
Produced more than 3mt of hard coking coal in
2011
Completed acquisition of 23.8% stake in BUMI Plc
on 20 January 2012
(3)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
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
Current Corporate Structure
PT Republik Energi & Metal
PT Borneo Lumbung Energi & Metal TBK
Market Cap of US$1,453MM
(1)PT ASMIN 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
Dave Alister Tonkin AKT’s Operations Director Samin Tan
Founder
Eva Novita Finance Director Alexander Ramlie President Director
Ken Allan Marketing Director
Peter Rod AKT’s Head of Mining
Borneo’s Vision
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
Creating Long Term Value for Shareholders
History of BORN
Within 3 years of Greenfield Acquisition, BORN Achieved Profitability
31 May 1999, AKT signed the 3rd
production capacity to 2.4 mtpa at the Kohong block
Future:
Increase production capacity to 10.0 and 15.0 mtpa by end of 2013 and 2018, respectively
27 Oct 2007,
BORN gained full management control of AKT
1999 Jan 07 Jan 08
Production capacity increased to 3.6mtpa in 2010 at the Kohong block
Jan 2012,
completed 23.8% investment in BUMI Plc
Sep 2011, reserves increased to 132 mt representing 90.4% growth from 70 mt in June 2010
Nov 2010, listed
on IDX and raised US$580MM
Notes:
1 CAGR calculated from 2005-2011
2 CAGR calculated from 2007-2011
Proven Track Record of Growing Reserves and Resources
Proven Track Record of Growing Reserves and Resources
Resources CAGR (1): 16.5%Reserves CAGR (2): 32.1%
mt
The Concession
Tremendous Production Upside and Long Reserve Life
Holds two coking coal
deposits - Kohong and
Telakon blocks, within
21,630 hectares of
concession area
JORC compliant
Reserves and
Resources of 131.8 mt
and 319.8 mt,
respectively,
―
Equivalent to 28.6x
(28.6 years)
forecast production
in 2012 of 4.4
million tonnes
CCoW production
permitted until 2039
Production share
(“Royalty”) 13.5%
JORC Mineable Reserves at September
2011
(mt) Proved Probable Total
Kohong 54.2 51.2 105.4
Telakon 11.6 14.7 26.4
Total 65.8 65.9 131.8
JORC Resources
(mt) Measured Indicated Inferred Total
Kohong 64.2 69.0 114.0 247.2
Telakon 11.8 27.7 33.1 72.6
BORN - Logistical Solutions
Increase Self-sufficiency And Decrease Reliance On The Barito River
Alternative transportation route
through Mahakam River a possible medium/long term solution
Haul road from mine to Melak port 8,000 tonne barges can be operated
all year round
ISP at Damparan, to AKT design,
1MT stockpile, 3,000tph unload, 4,000tph loading capacity
On-river transshipment capability
from 4,000 to 8,000 tonne barges
Mahakam River (355 km)
Existing logistics - Haul Road (36 km)
Existing logistics - Barito River (290 km)
Existing logistics - Barito River (272 km)
Haul Road (112 km)
Financial Highlights
In US$ 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 3
rdparties
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
Net income
-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%
Net income margin
-
12.5%
30.7%
10%
Note:
* Net Debt after
deducting
Revenue (FYE Dec)
Revenue (FYE Dec)
BORN Achieved One of the Highest Production, Revenue and Earnings Growth in Industry
Notes:
1 EBITDA is operating profit plus depreciation and amortisationc
Rp Bn
Production (FYE Dec)
Production (FYE Dec)
Rp Bn
EBITDA (FYE Dec)
(2)EBITDA (FYE Dec)
(2)Net Income (FYE Dec)
Net Income (FYE Dec)
000 tonnes
Rp Bn
% margin
% margin
12
1%
139
%
42
3%
67
%
Strong Operational and Financial Performance
US$ Million
US$ Million 22.322.3 306.1306.1 693.1693.1
US$ Million
%
Strong Operational and Financial Performance (Cont’d)
Peer Leading EBITDA Margin
Source: Bloomberg Estimates for FY11
Note:
1BORN’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
Strong Operational and Financial Performance (Cont’d)
BORN has the highest margin in Indonesia due to its superior coal product
2011 Snapshot
#Production
3.28mt
Sales
3.007mt
ASP
US$ 230/t
Margin
47%
EBITDA
US$360m
Update for 2011 :
Ramp up to 5mt, done
Additional mining ops staff
Additional pits opened
ISP now operational
CHPP stockpile expanded
Port stockpile expanded
New camp mostly done
New magazine, done
New workshops mostly done
Airstrip finished
Operations Overview
Key Operating Statistics And Future Ramp-Up
Notes:
1 First coal – September 2008; first commercial production – September 2009
Aggressively ramp up production
Phase 2: From 5.0 mtpa to 10.0 mtpa -> 2H2012 – 2015
Phase 3: From 10.0 mtpa to 15.0 mtpa -> 2014 – 2016
Will be achieved through a combination of expanding current production at Kohong block, bringing Telakon into
production and further exploration to expand reserves and resources at both blocks
Cash cost reduction program to be achieved through installation of IPCC system
Long term production capacity target: 15.0 mtpa
Long term production capacity target: 15.0 mtpa
($ MM)
Production as of FYE Dec
Production as of FYE Dec
(2)
Key Operating Statistics
2009 2010 2011
Production (000 tonnes) 880 1,950 3,258 Strip Ratio (bcm/mt)(1) 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,
Q1 2012 Outstanding Debt Overview
70 143 157 160
529
2012 2013 2014 2015 2016
Net Debt Maturities (2012E – 2016E)
Total debt outstanding: US$1 Billion Standard Chartered Bank Acquisition Loan for Bumi Plc Investment
PT Borneo Lumbung Energi
(“BLE”)
PT Asmin Koalindo Tuhup
(“Tuhup”)
PT Borneo Mining Services
(“BMS”)
99.99% 99.99%
US$ 345 million FGB Pre-shipment Loan
US$ 27.5 million leasing from ANZ US$ 0.7 million leasing from Indomobil
Finance
US$ 20.5 million JBIC from CIMB Niaga
US$ 4 million leasing from ANZ
US$ 1 million leasing from other various
lease companies
Outstanding 3rd party loan
US$ 382.2 million
Outstanding 3rd party loan
US$27.5 million
(US$ in millions)
US$ Million
Total
Exposure
Debt
Net
Loan
1.020
1.020
Pre-shipment
345
-Leasing
31
32
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
BORN Capex Program Up to 10 mtpa
2009 2010 2011 2012F 2013F
(US$ in millions)
Infrastructure expansion Additional mining equipment
550.0
147.0
283.0
83.0
37.0
Facilities & Mining Equipment
Excavators
Dump & Hauling Trucks
Crusher, Conveyor, Fuel Tanks, Explsoives Magazine
Dozers,Graders & Supporting Equipment
Breakdown of 2012F-2013F Capex
50.0
Mine Camp & Workshop
CHPP, ISP and Port Stockpile
Washing Plant & Power Station Port
(US$ in millions)
Q1 2012 Operating Results
1Q12
1Q11
FY12
FY11
Production (000 tonnes)
650
950
4,400
3,306
Strip Ratio
*20
16
18
17
Sales (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
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$
The Future
2012
2013
2014
2015
2016
The Plan :
Capacity
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
$80/t
Challenges:
World markets/prices
New customers
Indonesian regulations
-
HBA
-
DMO
-
Value Added
-
Law No 4 compliance
-
PP24 (divestment)
Managing ramp up
Staffing quality/levels
Coal quality
Close Proximity to Largest and Fastest Growing Markets
4
Strong Operational and Financial Performance
5
Premium Hard Coking Coal Product
3
2
Advantageous Terms of 3rd Generation CCoW
1
Favorable Coking Coal Industry Outlook
6
Experienced Management Team
Close Proximity to Largest and Fastest Growing Markets
Significant cost and delivery time advantages to large end users in East Asia and
India
India
China
Japan South
Korea
Indonesia
Australian coking coal companies
Taiwan
Source: Wood Mackenzie, Trade Data
Estimated Shipping Time to Destination & Cost per Tonne
Producers Destination
Estimated time to destination (Days)
Estimated cost per tonne (US$/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
Premium Hard Coking Coal Product
Consistently Achieved ASP Similar To Australian Hard Coking Coal
0.4 0.4 0.4 0.5 0.5 0.7 0.8 1.0 1.7
0 1 2
Mechal Rio Tinto Teck Wesfarmers BMA Riversdale Coal of Africa Consol Energy
1,100
Consol Energy Coal of Africa BMA Teck Rio Tinto Riversdale Wesfarmers Mechal
More Favorable
Caking Properties (Crucible Swelling Number or “CSN”)
Fluidity
Consol Energy Wesfarmers Rio Tinto BMA Teck Coal of Africa Mechal Riversdale
18.5 20.7 21.5 23.1 24.3 26.5 26.8 29.9 37.0
0 25 50
Mechal Rio Tinto Wesfarmers Riversdale BMA Teck Coal of Africa Consol Energy
9.0 9.0 9.0 9.0 8.0 8.0 7.5 7.0 6.5
0 6 12
Coal of Africa Riversdale Mechal BMA Wesfarmers Consol Energy Rio Tinto Teck
Source: AME
Tuhup Coal Reputable Customers and Diversified Destinations
China General Nice China General Nice, Zhonglian, Zhejiang
Materials Industry Fuel Group
Turkey Erdemir
India Tata Steel, Apex Energy Res.
Japan Nisshin Steel, Nippon Steel
Taiwan China Steel
Korea Hyundai Steel
Vietnam Tin Thinh Phat Company Ltd
China Baosteel, Wanxiang, Shente, CNBM,
General Nice
Turkey &
Romania DBK, Erdemir
India Tata Steel, Taurian
Japan Nisshin Steel, JFE
Taiwan China Steel, Dragon Steel
Vietnam Trungdung Trading
Glencore marketing agent up to July 2012
Favourable Coking Coal Industry Outlook
Asia Continues To Drive Imports And Australia Remains Key Exporter
mt
mt
Globally Traded Coking Coal Imports
Globally Traded Coking Coal Imports
Globally Traded Coking Coal Exports
Globally Traded Coking Coal Exports
Source: Wood Mackenzie Source: Wood Mackenzie
Japan India South Korea
China Other SE Asia Americas
Europe Other
Asia: 6.6%
4.4%
Asia: 6.1 %
5.7%
Australia China
USA Indonesia
Canada Mozambique
Russia Other
Austral ia: 7.1%
4.2
%
Australia: 5 .4%
Favourable Coking Coal Industry Outlook (Cont’d)
(1)
Note:
1 % shown represents countries / regions’ imports as % of global imports
Fast Growing Demand in China and India
mt
Coking Coal Imports (Asia)
Coking Coal Imports (Asia)
CAGR: 7.2
%
mt
Coking Coal Imports (India)
Coking Coal Imports (India)
CAGR: 12
.7%
Coking Coal Imports (China)
Coking Coal Imports (China)
CAGR: 8.0
%
mt
mt
Coking Coal Imports (SE Asia)
Coking Coal Imports (SE Asia)
Only Listed Hard Coking Coal Producer in Indonesia
Notes:
1 Market capitalization greater than US$400MM
2 As at 8 Feb 2012
Listed Indonesian Coal Producers (1)
Coal Type
MCap (US$MM) (2)
BORN Hard Coking 1,700 BUMI Thermal 5,743 ATLAS Thermal 488 ADARO Thermal 7,074 BAYAN Thermal 6,702 BERAU Thermal 1,657 HARUM Thermal 2,310 INDIKA Thermal 1,353 ITMG Thermal 4,985 PTBA Thermal 5,199 SAKARI Thermal 2,193
1
Thermal Coal (Listed Entity) Hard Coking Coal (Listed Entity) JAMBI
Transaction Overview
Purchase
Consideration
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
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)
Transaction
Target
Overview
BUMI Plc (listed on the LSE with a current market capitalisation of US$2.9 bn) is a leading thermal coal
player owning (2) :
― 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”)
Corporate Governance
BORN has right to nominate professional management and directors to BUMI Plc’s boardBORN completed its 23.8% investment in BUMI Plc, one of the largest diversified
coal and metals companies in the world, on 20 January 2012
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
Transaction Structure
(Comprised of suspended
(Comprised of voting ordinary
shares)
22.5% (1)
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
Strong New Governance Rights At All Levels
Note
1 Stakes based on BUMI Plc’s total share capital of 241 million shares
Combined coal reserves of
3.3bn tonnes with combined
production of 78mt in 2010
―
9M 2011 production of 62mt
―
Production expected to reach
140mt in 2014
―
Significant potential for
reserves expansion; only
70% of KPC’s concession
area explored
Open cut mining with dedicated
port facilities
―
All operations within 20km of
coast
Diversified portfolio of first class
metals
5th largest coal producer in Indonesia with FY11
production of 20mt
Total coal reserves: 467mt
Coal concession area: 118,400 ha License Expiry Date: 2025
Berau
Market Cap of US$1,612MM
(4)85%
BUMI Resources Minerals
Market Cap of US$1,631MM
(4) Diversified portfolio of first class metals assets in Indonesia and Africa
BUMI Resources
Market Cap of US$5,359MM
(4) Largest thermal coal producer in Indonesia
Total coal reserves: 2,860mt (5)
Coal concession area: 188,007 ha License Expiry Dates: 2018 - 2039
29%
87%
10%
48%
10%
32%
Current Corporate Structure
(1)Overview of BUMI Plc
BUMI Plc
Market Cap of US$2,866MM
(3)PT Bukit
Mutiara
Founders
(2)Access to World Class Coal and Mineral Assets
BORN & BNBR
& LH
Others
Source: BUMI Plc, BUMI Resources and Berau Filings
Note
1Based on total TSO of 241.0mm, including 60.4mm nonvoting shares
2Nathaniel Rothschild holds 8.8% of total shares
3As 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
4As of 12 February 2012 at an exchange rate of 1 USD to 9,091 IDR
BORN
Hard Coking Coal
2011 Expected Sales: 3.46 mt(1)
Market Cap: US$1.7 bn(2)
Berau
Thermal Coal 2011 Expected Sales: 20mt
Market Cap: US$1.6 bn(2)
BUMI Resource Minerals
Gold, Copper, Zinc, Iron Ore Resources
Market Cap: US$1.6 bn(2)
BUMI Resources
Thermal Coal
2011 Expected Sales: 83 mt(1)
Market Cap: US$5.4 bn(2)
BORN
Hard Coking Coal High CV Thermal Coal Low CV Thermal Coal
Non Coal assets Gold, Copper, Zinc, Iron Ore
Access to world class thermal coal and metal assets, with well established business models and strong cash flows
Diversification of Product Portfolio
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
Stake in a World Class Thermal Coal Asset
World’s largest sea-borne thermal coal producer
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
World Class Diversified Mining Company
Systematic ramp-up, cost synergies, and acceleration of
exploration, development and production of greenfield assets
Shareholder Value Creation
Positions the combined group as the largest Indonesian mining company in the world in terms of production
Global Indonesian Natural Resources Company
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
Access to the Growing Thermal Coal Market
World Class Internationally Diversified Mining Company
Opportunity to acquire a well known high quality asset that is immediately earnings
accretive
Transaction Objectives - BORN
Transaction Objectives - BORN
Transaction Objectives - Combination
Transaction Objectives - Combination
Transaction Rationale
Note
12011 expected sales annualized from 2011 interim results
Pendopo
Type: Exploration Reserves: 687 mt
Arutmin
Type: Production Reserves: 469 mt
Kaltim Prima Coal
Type: Production Reserves: 1,422 mt
Fajar Bumi Sakti
Type: Exploration Reserves: 282 mt
INDONESIA
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)
Gorontalo Minerals
Type: Exploration Mineral Inventory: 125 mt Grade: 0.55 g/t Au, 0.75 Cu
Citra Palu Minerals
Type: Exploration
Mineral Inventory: 2.5 mt gold, 106 mt moly Grade: 7.5 g/t Au, 0.14% Moly
Coking Coal Thermal Coal Diamond, Precious Metals Zinc, Lead Iron Ore Copper & Gold Gold, Moly
Held by BUMI Plc and its subsidiaries Held by Borneo Lumbung Energy and its subsidiaries
Producing assets
Konblo BUMI (Liberia)
Type: Exploration
BUMI Mauritania
Mineral Inventory: 100 mt Grade: 60% Fe
AFRICA
Diversified Across Coal and Metals
Dairi Prima Minerals
Type: Development
Reserves / Resources: 11 mt / 25 mt Grade: 11.5% Zn, 6.8% Pb
Kohong
Type: Production Reserves: 105 mt Resources: 247 mt
Berau
Type: Production Reserves: 467 mt
Telakon
Type: Development Reserves: 26 mt Resources: 73 mt
13.1%
BORN Expected EPS Accretion for FY2012E and FY2013E
(2)(US$MM)
Net
Income (3)(4)(5)
EPS 13.1% 26.6%
26.6%
US$0.014 US$0.016 US$0.015 US$0.020
BUMI Plc’s investment is immediately earnings accretive for BORN
Notes:
1 EBITDA (2011E) equal to c.US$ 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
FY2012E
FY2013E
Financial Impact On BORN
Source: Bloomberg, Company Presentations
Post Transaction Multiples
Gross Debt / EBITDA (2011E)(1) x 3.2x Net debt / EBITDA (2011E)(1) x 2.6x Net debt / Equity x 1.0x Post Transaction (Pro forma as at Sep 2011)
Debt US$MM 1,068
Cash US$MM 207
Net debt US$MM 861
Equity US$MM 890
Pre Transaction (Sep 2011)
Debt US$MM 68
Cash US$MM 207
Net debt US$MM (139)
