Source file signed link, expires in 15 minutes
Extracted text 26
Page 1
PT Adaro Minerals Indonesia Tbk
Public Expose
Wednesday, 28 February 2024
Page 2
Disclaimer
These materials have been prepared by PT Adaro Minerals Indonesia Tbk (the “Company”) and have not been independently
verified. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy,
fairness or completeness of the information presented or contained in these materials. The Company or any of its affiliates,
advisers or representatives accepts no liability whatsoever for any loss howsoever arising from any information presented or
contained in these materials. The information presented or contained in these materials is subject to change without notice
and its accuracy is not guaranteed.
These materials contain statements that constitute forward-looking statements. These statements include descriptions
regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of
operations and financial condition of the Company. These statements can be recognized by the use of words such as
“expects,” “plan,” “will,” “estimates,” “projects,” “intends,” or words of similar meaning. Such forward-looking statements are not
guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-
looking statements as a result of various factors and assumptions. The Company has no obligation and does not undertake to
revise forward-looking statements to reflect future events or circumstances.
These materials are for information purposes only and do not constitute or form part of an offer, solicitation or invitation of any
offer to buy or subscribe for any securities of the Company, in any jurisdiction, nor should it or any part of it form the basis of,
or be relied upon in any connection with, any contract, commitment or investment decision whatsoever. Any decision to
purchase or subscribe for any securities of the Company should be made after seeking appropriate professional advice.
2
Page 3
Business Overview
Page 4
PT Adaro Minerals Indonesia Tbk at a Glance
Indonesia's top metallurgical coal producer, with an industry-leading cost structure and growing client
base. Currently developing an Aluminium Smelter at the industrial park in North Kalimantan, as our
first step in supporting the Government’s downstream initiatives.
Large coal reserves and resources, supporting long-term sustainable growth. Coal reserves: 165.4 Mt.
Coal resources: 975 Mt.*
Strong demand profile from blue-chip steel companies. Customers are primarily from Asian countries
including Japan, China, India, South Korea, and Indonesia.
Offers coal supply diversification for customers and close proximity to key markets, reducing
transportation times and enabling a competitive cost structure.
Consistent volume growth in the medium term, reaching 6 Mt in 2025.
Developing an aluminium smelter project, with planned total capacity of up to 1.5 Mt, supporting the
Indonesian government’s downstream initiatives for batteries and the electric vehicle ecosystem.
*Coal Reserves and Resources data is as of August 2021 from independent consultant PT Quantus Consultants Indonesia
4
Page 5
Company Overview
CCoWs Locations Resources and Reserves
Total Coal Total Coal
Compliance
Company / Locality Reserves Resources
Standard
(Mt) (Mt)
Lahai Coal - Haju
2.3 4.3 JORC
(Metallurgical)
Maruwai Coal - Lampunut
84.3 100.3 JORC
(Metallurgical )
Juloi Coal - Juloi Northwest
- 629.9 JORC
(Metallurgical)
Juloi Coal - Bumbun
55.5 174.5 JORC
(Metallurgical)
Kalteng Coal - Luon
17.7 50.9 JORC
(Metallurgical)
Sumber Barito Coal - Dahlia Arwana
5.6 15.0 JORC
(Metallurgical)
TOTAL 165.4 975.0
Production Volume (Mt)
6.0 5.1
52%
4.0 3.4
2.3
1.9
2.0
0.0
2020 2021 2022 2023
5
Page 6
Established Infrastructure
to Ensure Operational Excellence
Lampunut Coal Handling and Processing Plant
Crushing Plant : 600 tph
One of the largest CHPPs in
Indonesia in terms of capacity
Reduces ash from 12% ad to 4.5% ad
Washing Plant : 525 tph (max: 550 tph)
WASHING – 3 Process Circuit
6
Page 7
Our ongoing Investment in Facilities
and Infrastructure
Hauling road progress Barge loading conveyor area Employee dorms’ construction
Washing Plant : 525 tph (max: 550 tph)
Our projects in Maruwai Coal (MC) and Lahai Coal (LC) continue the ongoing investment in facilities and infrastructure
through the upgrading of our hauling roads, addition of barge-loading conveyor, expansion of fuel storage facilities, and
staff accommodation.
7
Page 8
Supply Chain: from Coal Terminal to Vessel
Loading Points
Barge-to-barge Barge-to-Barge
▪ Barge-to-Barge transfers are done at
Tuhup Port Taboneo and North Kelanis using FC
A Hasan Basri
Barge-to-Vessel
B Tumpung Laung
Barge-to-Vessel (Taboneo)
C Kalahein Bridge
▪ Safe for loading for a wide range of
Teluk TimbauISP- ISP vessel sizes
▪ Floating Office at Permata Barito
Indonesia Bulk Terminal Indonesia Bulk Terminal
▪ Located at Pulau Laut Southeastern
coast of South Kalimantan.
▪ 11 Mtpa capacity
▪ Up to 82kt DWT
Taboneo ▪ Dedicated stockpiles of 640kt
Anchorage
Indonesia
Bulk Terminal 8
Page 9
The Value of the Green Economy
Substantial investment opportunities in Indonesia
Value at stake Growing demand for
Green economy Green minerals
$3T
Investment in renewable energy
by 2030
$800B
Global EV sector by 2030
9
Page 10
The Green Economy
Driving demand for green minerals
Electric vehicle Wind technology Solar technology
13 28 3 26 13 14 13
AI Ni Li Fe AI Si AI
Aluminium Nickel Lithium Iron Aluminium Silicon Aluminium
More Aluminium used in electric Metallurgical coal needed to produce
30% vehicles than internal combustion
90 Steel for each MW of wind power
7 Polysilicon needed for each MW
tons solar PV plant
engines tons
35 kg Nickel needed in a single car lithium-ion
battery pack
50- 120 Steel needed for each MW of wind
power (depending on offshore or 4M Aluminium demand from the solar
power sector by 2040
tons onshore) tons
Lithium needed in a single car lithium-
8 kg ion battery pack
1 ton Aluminium for 1 MW of wind turbine
10
Page 11
Developing Our Green Minerals Business
Increasing revenue contribution from minerals used within the EV and battery supply chains
Supporting the Government’s downstream initiatives in green industry and the processing of minerals
Our first step is via our Aluminium smelting project, with gradual development to reach 1.5 Mtpa
capacity
Positive LT outlook for aluminum as a supporting material in industries such as automotives, EV
battery, constructions, etc.
Through this project, we expect to reduce Indonesia’s dependency on aluminum imports, creating job
opportunities and contributing to green industrial development
11
Page 12
Aluminum Smelter in Kalimantan Industrial
Park Indonesia
Scope of project is 1.5 Mtpa of Aluminum production
Additional capacity of up to
500,000 tpa of Green
Aluminum. Adaro plans for this
Additional production to be powered by hydro.
capacity of up to 500,000 tpa
aluminum.
Adaro may invest in the
smelter’s power generation.
Power generation is under
Production capacity: 500,000 tpa discussion but will likely be a
aluminum. Adaro is investing in the hybrid of coal and renewables.
smelter’s power generation.
12
Page 13
Progress at the Aluminium Smelter
• Smelter: KAI has completed the soil investigation, land
levelling, and piling work for the baking furnace facilities.
In 1Q24, KAI will focus on piling and foundation activities
in the smelter area.
• Jetty: continue the piling work for facilities dedicated to
receiving inbound raw materials in the jetty area.
• Power plant: conducted piling works at the power plant
area.
• Supporting facilities
o Completed the land clearing for the permanent dorms
and construction of ancillary facilities such as outdoor
laydown warehouse, heavy equipment workshop, and
batching plant.
o In parallel, started the piling works for temporary
camp, indoor warehouse, and brick factory.
13
Page 14
Solid Performance in HSE
• ADMR implements the Adaro Group’s Adaro Zero
Accident Mindset (AZAM) which emphasizes on
continuous improvements in safety SOPs to improve
workers’ behavior.
PT KAI continues its construction progress while
consistently emphasizing health and safety
governance for each operational activity.
Indicator MC & LC KAI
LTIFR 0.32 0
SR 12.12 0
14
Page 15
CSR and Green Initiatives
• ADMR applies Adaro Group’s “Adaro Ignites Change” CSR
initiatives and Adaro Group’s initiatives in ESG.
• To improve ESG performance, and as the first step towards
energy efficiency, ADMR and Adaro Power are actively in the pre-
feasibility study phase of installing a mini-hydro power plant at our
mining site.
• As another initiative related to ESG aspects, ADMR also actively
promotes safe driving and hygienic and healthy lifestyle among
students at mentored schools in Laung Tuhup and Bastura
districts.
15
Page 16
Industry Overview
Page 17
Strong Market Fundamentals continue to
support pricing
Price Trends
800
• The 2023 Premium low-volatile (PLV) hard coking
700
coal (HCC) FOB Australia price declined by 19%.
600 Despite the decline, metallurgical coal prices
remain well supported, reaching nearly
500 US$300/mt on average. Shortage of supply from
US$/tonne
Australia as well as robust demand from China,
400
India, Southeast Asia are the main drivers.
300
• Overall demand for ADMR’s premium hard coking
200 coal product remains strong, as reflected on the
100
sales growth of 39% year-on-year reaching 4.5
million tonnes in 2023.
0
Sep-22
Sep-23
Mar-22
Jul-22
Mar-23
Jul-23
Jan-22
May-22
Jan-23
May-23
Nov-22
Nov-23
HCC PLV FOB Australia HCC PLV CFR China
17
Page 18
Metallurgical Coal
Seaborne Demand and Supply Outlook
Demand Forecast Supply Forecast
350.0 350.0
300.0 300.0
250.0 250.0
Million Tonnes
200.0 200.0
150.0 150.0
100.0 100.0
50.0 50.0
0.0 0.0
2022 2023 2024 2025 2026 2027 2028 2029 2030 2022 2023 2024 2025 2026 2027 2028 2029 2030
China India Japan South Korea Europe Others Australia Canada United States Mongolia
Sources: Adaro Analysis Russia Mozambique Indonesia Others
18
Page 19
Operational & Financial Highlight
Page 20
Strong Production & Sales
Growing Production with Low Strip Ratio Expanding Sales Volume (Mt)
25.0 4.0 4.5
3.7 +39%
3.5 3.2
20.0 18.7 2.3
3.0 1.4
2.5
15.0 2.2 2.2 2.5
2.0 2020 2021 2022 2023
10.0 8.3 1.5 Broad Market Demand (FY23)
5.2 5.1 1.0
5.0 4.2
3.4
1.9 2.3 0.5 Korea
Indonesia 6%
0.0 0.0 13% Japan
32%
2020 2021 2022 2023
Overburden removal (in million bcm) Coal production (in million tonnes) India
18%
Strip Ratio
China
31%
20
Page 21
Profitability levels maintained
Improving Revenue and EBITDA Stable Margins
1,086
40.6%
2023
908 53.7%
37.0%
2022
574 58.9%
460 490
34.1%
2021
248 52.3%
123
-23.2%
4 2020
-9.1%
2020 2021 2022 2023
Revenue (in $ million) EBITDA (in $ million) Net profit margin Gross profit margin
21
Page 22
Financial Summary OPERATIONAL PERFORMANCE FY23 FY22 % Change Production (Mt) 5.1 3.4 52% OB removal (Mbcm) 18.7 8.3 125% Sales (Mt) 4.5 3.2 39% FINANCIAL PERFORMANCE FY23 FY22 % Change (in US$ million, except Earning per share) Net revenue 1,086.0 908.1 20% Gross profit 583.2 534.9 9% Net profit 440.8 335.7 31% Operating Income 574.6 458.4 25% Core Earnings 421.0 341.7 23% Operational EBITDA 573.5 490.5 17% Interest bearing debt 420.7 487.2 (14%) Net debt (cash) (165.7) (24.2) 584% Capital expenditure 134.0 21.1 534% Cash 586.4 511.4 15% Free cash flow 194.6 374.3 (48%) Earnings per share (full amount) 0.0108 0.0081 33% 22
Page 23
Key Metrics
FINANCIAL RATIO FY23 FY22 % Change
Gross profit margin 53.7% 58.9% (5%)
Net profit margin 40.6% 37.0% 4%
Operating margin 52.9% 50.5% 2%
Operational EBITDA margin 52.8% 54.0% (1%)
Net debt (cash) to equity (x) (0.16) (0.04) 299%
Net debt (cash) to last 12 months Operational EBITDA (x) (0.29) (0.05) 485%
Cash from operations to capex (x) 2.21 22.69 (90%)
23
Page 24
FY24 Projections
Sales Volume (in Mt) Strip Ratio Capital Expenditure (in $ million)
3.7 3.6
175 - 250
4.9 - 5.4
4.5
2.5
2.2 2.2 134
3.2
2.3
1.4
44
21
11
2020A 2021A 2022A 2023A 2024F 2020A 2021A 2022A 2023A 2024F 2020A 2021A 2022A 2023A 2024F
24
Page 25
Conclusions and Takeaways
• ADMR’s competitive strengths include: (i) a large coal reserve and resource, (ii) premium product quality, (iii) a growing
client base amongst blue-chip steel companies, and (iv) industry-leading cost structure.
• Production volume in FY23 reached 5.1 million tonnes, up 52% year-on-year, with sales reaching 4.5 million tonnes,
reflecting 39% year-on-year increase.
• Capital expenditure in FY23 reached $134.0 million as we advanced construction of PT Kalimantan Aluminium
Industry’s (KAI) aluminium smelter whilst infrastructure projects at PT Maruwai Coal (MC) continue to progress.
• The aluminium smelter project under KAI is currently progressing well with the piling works as well as the construction
of other infrastructure related facilities.
25
Page 26
Thank you
26
Names mentioned 5 people and organisations named in the text · linked when the evidence is strong
unresolved
org
PT Quantus Consultants Indonesia
p.4
unresolved
org
PT KAI
p.14
unresolved
org
PT Maruwai Coal
p.25
Extraction attempts how the parser did, and what it refused
Nothing structured was extracted from this document — the attempts below say why.
No extraction attempted yet.