Very good evening, ladies and gentlemen. Thanks for joining this call today of PT Bumi Resources nine months 2025 earnings call. My name is Norman Choong. I will be your operator today. We are very honored to have this call being hosted by Pak Andrew Beckham, Chief Operating Officer of Bumi, and also Pak Christopher Fong, the Chief Corporate Affair Officer of Bumi. As usual, we will run through the operational stats of 3Q 2025, then followed by question- and- answer session. Pak Andrew, I will 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. Carry on, yeah. Production for the nine months 2025 was at 54.9 million tonnes, down slightly from 2024 of 57.3 million tonnes, mainly due to the heavy rain, especially in the third quarter at KPC. Prices, realized coal prices for nine months decreased to $60 versus $73 in nine months of 2024, in line with the global coal market. Production costs, overall production costs came down, mainly due to lower unit costs at KPC, and I will go on to more details in that, driven by the ore price and stripping ratio. Next slide, please. Our guidance remains at 73 million tonnes-75 million tonnes of sales. We are limited by production, which is under the RKAB, so we cannot get more coal produced out of KPC.
We will be well set up for the first quarter because of that. Prices are between $59 and $61, and it is possible that we beat that if the fourth quarter continues to move up a little as it is doing at the moment. Cost-wise, we are running around the lower end of our guidance at $42 as we have reduced our strip ratio slightly and fuel costs, as we have mentioned. Next slide, please. Global markets, international coal prices have been pretty flat, down towards the summer. As usual towards the winter in the northern hemisphere, you are seeing prices tick up a bit. There is a bit more demand now from October, November in China and prices are just coming up. I think you will see that continue up until halfway through December, and then it will go pretty flat as the Christmas holidays come in.
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 2027. GC NEWC referring to here. This year is still up at $108, $109. I think if the global markets continue to perform, you will see this $113 to $ 116 in calendar 2026 being a big possibility. Next slide, please. With regards to operations overall in our sales for nine months, we are at 54.5 million tonnes compared to 55.8 million tonnes. That is a slight drop of 2%. This is because our strip ratio has come down. You can see at KPC, we are at 8.6 BCM per tonne year- to- date versus 9.2 BCM per tonne last year. That is because we have opened up mines.
Now the mines have been in a more stable position, so you will see that strip ratio being slightly down. It will continue slightly down next year if all goes to plan. Coal mine is below because of the wet weather in the third quarter that we have had and rain continues at both KPC and Arutmin at the moment. Prices-wise, the FOB prices are down 20% at KPC and down 8% at Arutmin. Arutmin's prices have fallen less because it sells more domestic coal. Therefore, there is 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 CV coal 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 and 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 has been five months that have actually been above the long-term and over the last August, September and coming into October, we have been at higher levels and continues at the moment. Rainfall itself can maintain in Arutmin 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 Arutmin is slightly down from last year. Coal mine is slightly down by about 3% - 4%, but that is because of the weather and KPC now restricting its production based on RKAB requirements. Next slide, please.
Coal sales, almost the same, not far off. We have used up the inventory. We have quite a bit of inventory. We will see inventory levels come very low towards the end of the year as we maximize as much sales as possible. We will probably into the first quarter have a tight stockpile there. Arutmin is slightly up on last year in terms of sales. As I mentioned, stripping ratios are down at both KPC and Arutmin, and that is part of the mine plan, our long-term mine plans that we see. In 2024, the mines was opened, and now we are seeing the benefit come through. Next slide, please. Production costs. We have reduced our costs, as I said, because of strip ratio and because of oil prices coming down. I will talk more about that later. Arutmin maintained its costs slightly down on last year.
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 price of $82.8 down to $67.4. That has been the major trouble for us. The fact that the HBA has been following slowly behind does not help when we try to do our royalty payments and tax payments are now based on that HBA. If it is higher than the realized price we got. So it makes it harder for us. In a rising market, we do not have that problem. Average selling prices overall were down from $73.7 to $60.4. Next slide, please. This is the fuel. You see we are running at about $112-$ 113 per barrel in the last quarter at the moment.
Remember, we are now using B40 solution, which is biofuels 40%, and that is more expensive than pure diesel. Therefore, we are paying probably about $0.05 to $0.10 a tonne. It is $0.05 to $0.10 a liter more than any other normal operation or normal industry in Indonesia. So it is another penalty that we have to take into consideration. If they go to B50, that will have an effect on our fuel price. Next slide, please. Bumi's reporting. If you look at the revenue, we are 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 gold price and a write-off in BRMS, our subsidiary, of one of its assets.
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 million - $70 million, which benefited. So you saw an improvement in the profit last year. However, operational-wise, we are in a very good position. We just need the prices to recover. Assets liabilities are running pretty strong. We are 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 have done before, just to highlight the size of the revenues of $3.5 milllion against $4.2 million. These are in the back of the financial statements. I think Note 42 or 43, if you ever need quarterly numbers. Carry on, please. 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. Overall, when you look at consolidated, revenues are down 17%, but we have managed to reduce costs as well, thanks to fuel, but also thanks to the mining, 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. Moving finance items, as I said, the equity is slightly down overall year- to- date from December. The last 12 months consolidated adjusted EBITDA is running at $277 million at the moment, slightly down on 2024 because of coal prices. Next slide.
This is just in quarter- by- quarter, how it is built up. You can see the EBITDA each quarter from this year, like Q1 2025, has gradually increased as we are forecasting 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 we close. The mine closure deposits you have there of over $45 million-$55 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 mine life to go.
It is quite frustrating, but that is the rules with the government. Next slide, please. ESG, would you like to-
Yeah. We are on track year by year, so up to the nine months compared to 2024. Our CSR program, we have spent $3.5 million. We are 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. That covers reclamation, planting trees, and protecting our environment. Also, safety issues, gas emissions, et cetera. What we do not have in this document, which we are doing a lot of work on, we have talked about it previously, is the ESG work we are undertaking now, in terms of setting standards and emission 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. That is 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 are doing, undertaking on an ESG platform. Moving on?
That is about it.
Yeah.
Norman that's about it. We won't go into the detail, but KPC details and Arutmin details are attached so that people have the breakdown of the key assets, the coal assets. But we're happy to open it up to questions and -- questions now.
Sure. Thank you Pak Andrew. Thank you Pak Chris.
Okay. Ladies and gentlemen, if you have a question, you can use the raise your hand function, or alternatively, you can also type your question into the Q&A box, and I'll read it out for you. Please limit your questions to a maximum of two each time, so everyone have a chance to ask.
I think I'll let control it. It's okay.
Okay. I think our audience needs some time to warm up. Let me kick it off first. But I wanted to check with you, what's your view on your 2026 coal production numbers? Because I understand that a lot of mining company are in the process to submit RKAB for next year. That's my first question.
Yes. We're all submitted. I think all our RKABs are in, waiting for the government. I think they're having a big review on the total level of coal production they want. I know it used to be about 800 million- 900 million. It came down to 750 million this year. But I understand they are looking at further reductions. To be honest, I don't know what the results of that are going to be. But we're waiting to hear from the government on our RKAB.
I see. The amount that you have submitted is the same as 2025, is it?
Slightly up. It will be slightly up.
Okay.
Because Arutmin will be probably increasing its production.
Got it. You also had an EGM yesterday. Can you run us through what was the key result from the EGM?
I am happy to do that. The basis of the EGM was, firstly, to address the resignations of the CIC directors. It was a formality in having the EGM recognizing their resignation. Also, there was a change in one other person. The CFO has moved to a new position outside the group. So those were the two main areas and purpose of having the EGM. Also, there was one appointment, which was myself as a Director.
Congratulations, Pak Chris.
Thank you.
Do we have any questions from the floor? Let's see. Otherwise, I'll follow up with my third question. But f rom the news, it seems like Bumi Co. is quite active in M&A recently. So we have this Wolfram acquisition and Laman Mining, right? Just wanted to understand, does it mean that there's a change of direction where Bumi now have a more flexible in terms of doing asset acquisition? And maybe in terms of the financial muscle side of things looks like?
Well, look, there's no secret that this year is a year of transformation of Bumi. We announced to the market fairly early this year that we are going through a diversification strategy. I think the market has been fairly surprised in the speed that we've taken this on. That was the first announcement of the asset in Australia, which is a copper and gold asset, Wolfram Limited. We now have 100% of that asset. It's in northern Queensland in Australia. We visited that site recently, the President, Director, and myself, and a few other directors. It wasn't the first visit from Bumi, but it was certainly the first visit for myself. It's a fantastic asset. It's in care and maintenance, so it's a brownfield asset. It will be up and running very quickly.
We initially targeted for June next year. Although we're keeping to that, we expect that this will be sped up. We will announce that when we are ready to. As I said, it's a very good asset. It has a lot of data, it has a lot of resources, and it has processing on site. We expect to have some very positive news as we move forward into the new year on that particular asset. Also, on our website, we have announced another asset in Australia called Jubilee Metals. There will be more information next month on that. It is also a gold play. That's the second asset in Australia that we have acquired. As I said, there will be further news on that in December. Also, which you just mentioned, bauxite. We've entered some agreements on bauxite.
They're going through a legal process. As the market well knows that the bauxite industry is well established in Indonesia and there were some issues over export. As the market expects, there will be further announcements what we do with bauxite and when we do it in the near future. We're moving forward in a transition plan that I think has taken the market by surprise because we talked about it, but we actually are doing it.
Thank you, Pak Chris. Maybe to follow up on this one. These two acquisitions, are they funded by internal cash or debt? Further related to in terms of debt funding, could you remind us what is the current covenant in terms of debt and fundraising?
We've done the ratings. We've raised some of the money through the bond program that we have, the Rupiah bond program that we have. Rates are around 8.5%-9% depending on the tenure. Those have been the ones funded. We have no specific covenants other than the normal bond regulations in Indonesia.
We are very confident with gold prices and copper prices where they are. We expect payback within one to two years on these projects.
Okay. Thank you. We have questions from the box already. The first one is from [Benjamin Michael]. How big is the bauxite resources of Laman Mining, and how big is alumina smelter?
Laman Mining has, I think, resources or reserves of about 30 million tonnes, but potentially that could increase with a little bit more. There is a discussion over one area and an agreement. If that agreement is found, that would probably increase it to 50 million tonnes. What was the second question? Sorry.
The alumina smelter. How big is the capacity?
That we haven't gone into detail. We can't go into detail at the moment. We'll announce when we get to that point.
Okay. Sure. Hope that answered your questions [Benjamin].
What it does say is that part of our diversification strategy is not just going into minerals, away from thermal coal, but also to downstream processing. As I mentioned before, we cannot export bauxite, and bauxite can't be exported from Indonesia. Naturally, there will be a downstream processing component to that. But we'll announce that in due course.
Sure. Second question's coming from [Alden Lam]. Is Pak Ashok Mitra still in KPC as CEO? That's his first question.
No, he's no longer in the Bumi group. He's outside that now.
His second question is, can you share your thought on the impact of B50 to the Bumi mining cost?
I couldn't give you a number at the moment. I haven't done the numbers. I should expect another $0.05 to $0.10 per liter it may well cost if the subsidy that used to be there by the government is still not there.
Got it. Andrew, I have a client who just texted me. Her question is, with regards to the two directors from CIC that has just resigned from the EGM, does it mean that CIC will totally exit from the business? What do you think about it?
We understand the China government had the policy of not being invested in thermal coal.[ inaudible]
Yes.
Yeah. That's what we believe is their reason, and if you see in the public markets, they're selling down their shares in Bumi at the moment. We assume that that's the plan. That's why they resigned, and their plan is to exit. I think this is their last thermal coal asset that CIC has.
Got it. Okay, a question from [Yoga]. Can you share production outlook for Wolfram and Jubilee Mining, including annual production target and cash costs?
For Wolfram Mining, on an annualized basis, commencing in June 2026, we're expecting 50,000 oz at this stage. Although we won't be surprised if we commence production prior to that date. I think Jubilee will do about 25,000 oz once it's in full production. Cost-wise, we'll come back to you once the budgets are closed and finished.
Thank you. Can I follow up on these two? What are the rough mine life that we should expect with this kind of production?
Well, with gold, it's always a case of you drill as you go and you place for years. There's long mine lives in both of them based on the potential resources and reserves available. We'll update as we go, but we have more than enough mine life to get our money back at a good return.
Sure thing. [Benjamin] has more questions. He's asking who is replacing Pak Ashok following the end of his tenure, and any other potential M&A going forward?
Well, at the moment I'm acting CFO as well. There's a big discussion going on internally, and once it's been resolved, then we'll make an announcement.
To the second question, which I am happy to answer. It is also no secret of our expansion plans in terms of the transition model.
We are expecting in the next within five years to be at EBITDA basis, 50% in par with our coal. Therefore, naturally, we will be announcing further acquisitions as we move forward, and we expect that in the next 6-12 months.
Norman, we can see what you are writing. I do not know if that was-
Oh, so sorry. I mean, I have to write it down, right? So sorry. I forgot to off my screen.
No. What we are saying is, yes, it is very clear that we are undertaking a very aggressive transformation. We have a very big development unit who are focusing on assets, not just in Australia but also in Indonesia. That has been reflected in some of the announcements that we have talked about today. There certainly will be more coming. But also do not discount that. Look, we are still in thermal coal. We are very focused on streamlining.
Streamlining.
Streamlining, sorry. Excuse me. The production. As you would have seen those results today, that was significant cost savings we are seeing at the mines, and they will continue. Very much focused on thermal coal. But as we expand in this transition, you will see more metals, and you will see more downstream processing assets come on board.
Sure. Okay. Okay. Anyone have more questions?
Anything.
Yeah. It seems like there is no more questions. Maybe let us wait for a little bit more. Yeah, I think there is no more questions from everyone.
Yeah, we've covered that.
Okay. That conclude the earnings call today. Thank you, Pak Andrew . Thank you, Pak Chris, for doing this for us. As usual, if you have questions, you know you can reach out to them directly or you can reach out to me.
Yeah.
Yeah.
Sorry, Norman, can I just add that, look, apart from this transformation, there has been a significant restructure of Bumi. We have a much more larger Investor Relations department, and we're very transparent, so we're very happy for engagement from anybody who has questions about the business.
If you're not getting the updates from the company, please contact us. Yeah.
Sure thing. Thank you so much. Thanks, everyone.
Thanks, Norman.
Thank you.
Thank you.