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Executive Summary
Overall financial performance as at YTD June 2017 better than YTD June 2016
and the Budget
Overall sales volumes at YTD June 2017 were higher than the Budget mainly due to increased production at Tabang.
Actual ASP was higher than the Budget as market prices remained above the Budgeted levels.
1) Revenue, Gross Profit include coal and non-coal sales ;
1) Average Selling Price includes coal and non-coal sales ; 2) Average Cash Costs include Royalty, Barging, SGA;
Revenue (1) 221.7 347.6 423.1 22% Gross Profit (1) 65.4 136.1 214.1 57%
Gross Profit Margin 29% 39% 51% 29%
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Executive Summary - continued
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Sales volumes 2Q17 was 4.7 million MT which was higher than 1Q2017 and the Budget of 4.2 million MT mainly due to increased production at
Tabang.
2Q17 Coal Production achieved was 4.3 million MT which was principally
in line with the Budget of 4.3 million MT. However, it was higher than
1Q17 mainly due to the relocation of our contractor at Tabang to low strip
areas during the quarter in order to better match production and trucking
capacity, earlier commencement of mining at Wahana and the arrival of
additional mining fleets at PIK.
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Executive Summary - continued
2Q17 Cash costs of US$ 28.6/MT was lower than the Budget of US$
29.5/MT mainly due to:
• Higher actual sales volumes which decreased certain unit costs
• Lower spend on material and spare parts as well as repair and
maintenance
• Lower unit rates at Tabang in OB Removal, coal mining and hauling as a result of a discount received from subcontractor to increase the volumes from the original contract
• Lower than Budgeted demurrage;
• General lower actual fuel price rate which resulted decrease in barging cost and fuel consumption cost;
Partially offset by:
• Higher weighted stripping ratio at PIK and TSA/FKP;
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2Q 2017
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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
2Q17 Overburden removal of 17.1 million BCM was higher than the 1Q17 and 2Q17 Budget
15.0 17.1
1Q17 2Q17B 2Q17
16.6 2Q17 OB was 17.1 million
BCM which was higher than 1Q17 and the Budgeted mainly due to:
Contractor has
mobilized additional equipment in 2Q17 to rectify the shortfall and new geological model was prepared to correct for the discrepancies (TSA/FKP)
Mobilization of
additional mining fleets at PIK coupled with lower rainfall
2Q17B 2Q17
Gunungbayan Pratamacoal-
Block II 1.5 -Teguh Sinar Abadi/ Firman
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Coal Production
(million MT)
Coal Production Volume
www.bayan.com.sg 2Q17 coal production of 4.3 million MT was in line with the 2Q17 Budget
4.0 4.3
1Q17 2Q17B 2Q17
4.3
2Q17 coal production of 4.3
million MT was principally in line with 2Q17 Budget, however it was higher than 1Q17 mainly due to :
The relocation of our contractor at Tabang to low strip areas during the quarter in order to better match production and trucking capacity and also as a result of higher rainfall which flooded certain sections of the working area
Earlier commencement of mining at Wahana
Arrival of an additional mining fleet in early April 2017 (PIK)
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Actual Weighted Average Stripping Ratio (SR)
Weighted Average Strip Ratio
2Q17 actual weighted average strip ratio of 3.9 : 1 was principally in line with 1Q17 and the 2Q17 Budget 1Q17 and 2Q17 Budget
Higher SR at TSA/FKP in
2Q17 compared to the
Budget due to change in
scheduling required to
develop the pit at higher production rate compared to Budget and variations in the geological model
Higher stripping ratio at
PIK due to change in production plan following the contractor’s Q2
equipment deliveries
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Average Cash Costs per MT(*)
Average Cash Costs
www.bayan.com.sg (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
( Budget of US$29.5/MT mainly due to:
• Higher actual sales volumes which decreased certain unit costs
• Lower spend on material and spare parts as well as repair and maintenance
• Lower unit rates at Tabang in OB Removal, coal mining and hauling as a result of a discount received from subcontractor to increase the volumes from the original contract
• Lower than Budgeted demurrage;
• General lower actual fuel price rate which
• Higher royalty cost mainly due to higher ASP;
27.2 28.6
1Q17 2Q17B 2Q17
29.5
9 due to changes in shipping schedule.
India and China are the top two
destinations in 2Q2017
Top Customers 2Q17 (by Sales Volume)
are TNB Fuel, Noble Resources and Sembcorp Gayatri Power Limited
2Q17 coal sales volume was 4.7 million MT which was higher than 1Q17 and 2Q17 Budget due to changes in shipping schedule
Note : B stands for Budget Figure
Geographic Distribution (1Q17)
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Average Selling Price (ASP)
www.bayan.com.sg
Average Selling Price (*)
2Q17 ASP was US$ 50.2/ MT which was higher than the Budget as the Company benefited from more exposure to the current higher benchmark prices
(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 in 2Q17
than the 2Q17 Budget
(US$ 79.8/MT vs US$ 65.0/MT)
2Q17 average CV was 4,682 GAR kcal
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EBITDA
Note : B stands for Budget Figure
2Q17 EBITDA generation was
stronger than Budgeted due to:
Higher than Budgeted ASP
Higher than Budgeted sales
volume
Lower than Budgeted Cash
Costs 86.8
101.6
1Q17 2Q17B 2Q17
46.8
(US$ Million)
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Committed and Contracted Sales for 2017
www.bayan.com.sg
2017
Fixed Price Floating Price
17.7 million MT
72%
28%
Note : June 2017
As at 30 June 2017 committed and
contracted sales were 17.7 million MT with an average CV of 4,629 GAR kcal
2017 Fixed Price element at US$
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Net Debt and Cash
As of 30 June 2017, the total TLF Loan was US$ 399.2 million (excluding PIK
Interest)
The Company reduced the Net Debt to EBITDA to 0.86x as at 30 June 2017
470.3 465.6 465.4
Note : Total Net Debt and Cash + Debt Service Reserve Account (DSRA)
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Capital Expenditure
www.bayan.com.sg CAPEX (*)
* US$ is a convenience translation using the average annual exchange rate;
* B stands for Budget Figure
2Q17 Capex was US$ 14.3 million
which was higher than the Budget of US$ 11.9 million, principally consisted of:
Heavy equipments (i.e. Komatsu
Bulldozer, Dump Trailer and Terrain Crane)
Tabang related infrastructure at
Senyiur Jetty (i.e. Palu Gravel, relocation & re installment of Silo from Pakar to ICF)
11.9
14.3
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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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www.bayan.com.sg
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
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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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