Pt Bumi Resources Tbk

Ladies and gentlemen, thanks for joining this call today of PT Pumi Resources 9 Months 2025 Earnings Call. My name is Norman Chong. I'll be your operator today. We are very honored to have this call being hosted by Buck Andrew Beckham, Chief Operating Officer of Bumi, and also Buck Christopher Fong, the Chief Corporate Affairs Officer of Bumi. So as usual, we will run through the operational stats of 3Q25, then followed by question and answer session. Buck Andrew, I'll pass the floor to you.

Thank you, Norman. Good evening, good afternoon, good morning to everyone there. Let me go through the slides. Next slide, please. Production for the nine-month 2025 was at 54.9 million tonnes, down slightly. and from 2024 of 57.3 mainly due to the heavy rain especially in the third quarter at kpc prices realized cold prices for nine months decreased 60 to 60 dollars versus 73 in nine months 2024 um in line with the global um coal market Production costs, overall production costs came down to lower unit costs of KPC, and I'll go on to more details in that, driven by the oil price and stripping ratio. Next slide, please. Our guidance remains at this 73, 75 million tons of sales. We're limited by production, which is under the RKAB, so we can't get more coal produced out of KPC, but we will be well set up for the first quarter because of that. Prices are between 59 and 61. It's possible that we beat that if the fourth quarter continues to move up a little, as it's doing at the moment. Cost-wise, we're running around the lower end of our guidance at $42, and we've reduced our strip ratio slightly, and fuel costs, as we've mentioned. Next slide, please. Global markets, international coal prices have been pretty flat down towards the summer and as usual towards the winter and the northern hemisphere you're seeing prices tick up a bit. There's a bit more demand now from October, November in China and prices are just coming up. I think you'll see that continue up until halfway through December and then it will go pretty flat as the Christmas holidays come in. But we see a little bit of improvement in the prices at the moment. Next slide, please. The forward curve is running long-term, still at 120, 122 in calendar 27. GDC Newcombe referring to here. This year is still up at 108, 109. There's a lot of, I think if the markets, global markets continue to perform, you'll see this 113 to 116 in Canada, 26 being a big possibility. Next slide, please. With regards to the operations overall, in our sales for nine months, we're at 54.5. compared to 55.8, a slight drop of 2%. This is because our strip ratio has come down. You can see at KPC we're 8.6 year to date versus 9.2 last year. That's because we have opened up mines, we have improved Now the mines are in a more stable position, so you see that strip ratio being slightly down. It will continue slightly down next year if all goes to plan. Cold mine is below because of the wet weather in the third quarter that we've had, and rain continues at both KPC and Arrugment at the moment. prices-wise, the FOB prices are down 20% at KPC and down 8% at Aruban. Aruban's price has fallen less because it sells more domestic coal and so therefore there's a fixed price there of $70 benchmark which protects it from that increase, or the global market fall, plus the fact that we have a lot more of the 4,200 to 5,000 CV coal, which has maintained its price better than the very high grade coal. Next slide, please. Here you can see the rainfall, KPC at the top has pretty much five, six months. The red is the actual against the long-term averages. And for five, six months, there's been five months that have actually been above the long-term. And over the last August, September, and coming into October, we've been at higher levels, continues at the moment. Rainfall in Taupo, Kalimantan and Aruban has been less than the global trends and has stayed pretty stable all the way through. Next slide, please. As I said, overburden has gone down because of the unfavorable weather, but also because of our strip ratio at KPC. You can see the root min is slightly down from last year. The cold line is slightly down by about 3 or 4%, but that's because of the weather and KPC now restricting its production based on RKAB requirements. Next slide, please. Cold cells, almost the same. Not far off, we've used up the infantry. We have quite a bit of infantry. We will see infantry levels come very low towards the end of the year as we maximise as much sales as possible. And we'll probably, into the third quarter, have a tight stockpile there. A Rootman is slightly up on last year in terms of sales. As I mentioned, stripping ratios are down at both KPC and Arupmin, and that's part of the mine plan, our long-term mine plans that we see. In 2024, the prices for the mines was open, and now we're seeing the benefit come through. Next slide, please. Production costs. We've reduced our costs, as I've said, because of the strip ratio and because of fuel price, oil prices coming down. I'll talk more about that later. Aruba's maintained its costs slightly down on last year. And FOB price, as we all know, has dropped about 18% overall, especially at KPC, has been a big drop. Next slide, please. Average selling prices, as I mentioned, you can see the big drop from the international prices of 82.8 dollars down to 67.4. That's been the major trouble for us. And the fact that the HPV has been following slowly behind doesn't help when we try to do our royalty payments and tax payments are now covering are based on that HPV. If it's higher than the real-life price we got. So it makes it harder for us. In a rising market, we don't have that problem. Average selling prices overall were down from 73.7 to 60.4. Next slide, please. And this is the fuel. You see we're running at about 112, 113 in the last quarter at the moment. We're now using B40 solution, which is biofuels 40%. And that's more expensive than pure diesel. And so, therefore, we're paying probably about 5% to 10 cents a litre more than any other, you know, a normal operation or a normal industry in Indonesia. So it's another priority that we have to take into consideration. And if they go to B50, that will have an effect on our field growth. Next slide, please. Booming reporting. If you look at the revenue, we're up on our revenues because of BRMS improvements. Our gross profit has improved. However, our net profit has come down. The main reasons for that, if we look at the other income and expense, has been the KPC earnings because of the drop in coal price. and a write-off in BRMS, our subsidiary, of one of its assets. And in the income tax and profit sharing, when you compare to 2024, in 2024 there was a deferred tax adjustment, which gave it a benefit of about 60, 70 million dollars, which benefited, so you saw an improvement in the profit last year. However, operational-wise, we're in a very good position, just we need the prices to recover. Assets like Benetida are pretty strong. We're still at a current ratio of one, and also equity is high at $2.8 billion. Next slide, please. This just gives you the consolidated numbers, as we've done before, just to highlight the size of the revenues of 3.5 against 4.2. These are in the back of the financial statements. I think note 42 or 43, if you ever need quarterly numbers. Carry on, please. And this just gives you the comparison between the two, just so you understand. The bottom line is still the same, but it does have an effect on all our numbers. Next slide, please. So overall, when you look at consolidated revenues, are down 17% but we've managed to reduce costs as well thanks to fuel but also thanks to the mining on bringing our strip ratios down. Our gross profit is down overall when you include KPC and our operating income is slightly down by 22%. Operating margins remain pretty not significant change but we hope with coal prices ticking up over the next couple of months, we should see a good fourth quarter. Next slide, please. Boomi Financial, as I said, the equity is slightly down overall year-to-date from December, and the last 12 months consolidated adjusted EBITDA is running at $277 at the moment, slightly down on last, on 2024. because of coal prices. Next slide. And this is just in quarter by quarter, the how that they've built up. And you can see the EBITDA each quarter from this year, like Q1-25, has gradually increased as we're formatting prices slightly rise. If prices continue to rise in Q4, we should see that slightly better as well. Next slide, please. Cash still remains strong at $314 million in total. Below are the breakdown of KPC. Note that we have the CDA restricted funding for payment of contractors at the end of the month, or it gets paid the following month, the one or two days after the year closed. The mine closure deposits you have there of 45 and 59, 100 million, over 100 million is for mine closure. Assuming we get our extensions, we are having to keep these bonds in with the government, even though we have probably another 15 years of live mine life to go. So it's quite frustrating, but that's the rules with the government.

Next slide, please. We're on track, year by year, so up to nine months compared to 2024. We have our CSR program, we spent $3.5 million. We're on track to spend what has been targeted. Our environmental spend overall is on track, and we will end up spending somewhere in the vicinity of $76 million, and that covers reclamation, planting trees, and protecting our environment. Also safety issues. gas emissions, et cetera. What we don't have in this document, which we're doing a lot of work on, we've talked about it previously, is the ESG work we're undertaking now in terms of setting standards and admission targets and reporting on them. Also related to issues such as the weather issues at KPC, we have implemented research in terms of predictive ESG to using our data from all our weather stations to determine better usage of working days and to increase production and also maintenance days. So that's a program that is ongoing. It started the last few months and we will be reporting on results on that as we move forward into the new year. But it is certainly positive in the work we're doing and undertaking on an ESG platform.