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20231031_AMMN_Laporan Informasi dan Fakta Material_31483607_lamp4.pdf
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PRESS RELEASE
FOR IMMEDIATE RELEASE
AMMAN Reports Q3/2023 Earnings Results
Bounced Back after the Challenging First Half of 2023
Key Highlights
• Q3/2023 concentrate production of 110,623 metric tons with sales of 180,698 metric tons.
• Q3/2023 copper production of 66 Mlbs with sales of 99 Mlbs.
• Q3/2023 gold production of 88 Koz with sales of 114 Koz.
• Q3/2023 EBITDA of US$263 million.
• Production and sales in Q3/2023 were back on track after challenging H1/2023.
• Maintained Pinancial resilience while ensuring compliance with new government regulations.
• As of 30 September 2023, the copper smelter and precious metals rePinery (“PMR”) projects achieved 67.1%
and 65.4% completion, respectively. The copper smelter progress surpassed the target agreed by the
Government.
• Accelerated several aspects of expansion projects to achieve mechanical completion as per schedule.
Jakarta, 31 October 2023 – PT Amman Mineral Internasional Tbk (IDX: AMMN) (“AMMAN, the “Company,”
or “We”), a company that operates the second largest copper and gold mine in Indonesia, Batu Hijau mine,
today announced its third quarter of 2023 Linancial and operational results.
“Starting from the third quarter this year, we began to bounce back after the Lirst seven months of this year
impacted by inclement weather and delay in export permit extension. We focused on optimizing our
operations, where the team broke historical records of monthly materials mined (including waste and ore).
We have also started to blend fresh ore from Phase 7 in its production process. Our expansion projects also
continued to progress on schedule, where the smelter construction through our subsidiary, PT Amman
Mineral Industri (“AMIN”), surpassed the September target set by the Government,” said Alexander Ramlie,
President Director of AMMAN. “Our commitment towards more sustainable operations is also reLlected in
our new initiatives that we started in Q3/2023. Our subsidiary, PT Amman Mineral Nusa Tenggara (“AMNT”)
signed a Letter of Commitment with the Copper Mark. We also released our Lirst Sustainability Report for
2022. We also received two Subroto Awards 2023 and three Good Mining Practice Awards 2023 from
Indonesia’s Ministry of Energy and Mineral Resources. These awards and recognitions become the catalyst
for AMMAN to keep improving our sustainable practices in all aspects of our operations,” added Alex.
“Our sales performance in Q3/2023 got back on track after receiving the export permit on 24 July 2023, where
we accelerated the shipment of concentrate in Q3/2023 to catch up to the lost sales. We incurred higher
compliance costs due to delayed issuance of the export permit and various new regulations, such as the
increase of export duty to 10 percent, smelter penalty, and IUPK non-tax government revenue (Penerimaan
Negara Bukan Pajak or “PNBP”). We also have to set aside 30 percent of our export earnings each month in a
special account for a minimum of three months as mandated by a recent rule of Bank Indonesia. Our Linancing
strategy has been recalibrated to support these regulatory changes and the pace of capital expenditure for
expansion projects.,” said Arief Sidarto, Director of Finance of AMMAN.
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AMMAN Q3/2023 Key Operational and Financial Highlights
Q3/2023 Q3/2022 % Change
Operating metrics
Concentrate production (dmt) 110,623 206,694 (46)%
Concentrate sales (dmt) 180,698 202,889 (11)%
Copper production (Mlbs) 66 122 (46)%
Copper sold (Mlbs) 99 120 (17)%
Copper price net (US$/lb) 3.59 2.46 46%
Gold production (Koz) 88 203 (57)%
Gold sold (Koz) 114 187 (39)%
Gold price net (US$/oz) 1,887 1,588 19%
Materials mined (Mt) 88 84 4%
Mill throughput (Mt) 8 10 (19)%
Q3/2023 Q3/2022 % Change
Financial metrics (US$m)
Total net sales 570 590 (3)%
EBITDA 263 317 (17)%
Net income (before IUPK Tax) 103 183 (44)%
Net income (after IUPK Tax) (54) 183 NM
Adjusted C1 Cost (US$/lb)1 0.21 (0.52) NM
Capex 480 219 119%
Per Sept 2023 Per Sept 2022 % Change
Cash and cash equivalents 1,226 671 83%
1 Adjusted for amortization of deferred stripping cost and movement in stockpiles and concentrate inventories
Production
In Q3/ 2023, AMMAN’s mining operations broke historical records of monthly materials mined (including
waste and ore). Pit pumping activities were also optimized, resulting in faster-than-expected pit dewatering.
This allowed us to mine fresh ore from Phase 7 in July 2023, earlier than the pre-IPO target of September
2023. Compared to H1/2023, where materials mined were fully from the waste, in Q3/2023, we started to
mine fresh ore from Phase 7.
Our processing plant operations also started to blend fresh ore from Phase 7 in its production process. Our
strategy is to maximize copper recovery to ensure the best mineral conservation, optimized return, and
cleaner tailings. With higher head grade from the fresh ore, processing operations improved its copper
recovery, mill throughput, and concentrate grade compared to H1/2023. When comparing Q3/2023
concentrate production to Q2/2023, we increased our concentrate volume and eventually the copper and
gold volume. There was a minor decrease in mill throughput due to the total plant shutdown for two weeks
in September 2023, when the processing plant underwent regular scheduled maintenance.
Q3/2023 Q2/2023 % Change
Concentrate Production (dmt) 110,623 94,258 17%
Copper Production (Mlbs) 66 53 23%
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Gold Production (Koz) 88 47 86%
Net sales
In Q3/2023, net sales decreased by 3% y-o-y against Q3/2022, due to the delayed export permit from 1 April
until 23 July 2023. After receiving the export permit on 24 July 2023, we accelerated the shipment of
concentrate in Q3/2023 to catch up to the lost sales. The concentrate sold during this period included the
concentrate inventory from the previous quarter’s production. Between Q3/2022 and Q3/2023, the average
net selling prices for copper and gold increased by 46% and 19%, respectively.
EBITDA
AMMAN reported EBITDA of US$263 million in Q3/2023, representing a 17% decrease from US$317 million
in Q3/2022. This y-o-y decrease was primarily driven by the increase in cost as we processed lower-grade
stockpiled ore and higher export duty. However, compared to H1/2023, AMMAN’s EBITDA in Q3/2023 was
in a better position since we were able to continue selling the concentrate.
Net income
Our net income in Q3/2023 was signiLicantly impacted by higher compliance costs, which include:
(1) The absence of revenue from 1 April to 23 July 2023 due to the delayed export permit.
(2) IUPK PNBP, which refers to the non-tax government revenue or proLit-sharing obligation imposed by the
Government that is applicable for AMNT on years it has made a proLit since obtaining its Izin Usaha
Pertambangan Khusus Operasi Produksi (“IUPK-OP") in 2017. IUPK-OP is a special mining business
license for companies to perform production and operation activities (i.e., construction, mining,
processing and/or reLining, transportation, and sales) within the speciLied area.
ProLit sharing under Law 3/2020 is set at 10% of total proLit after corporate income tax (net income)
based on every year’s audited Linancial statement, which would be split into 4% for the Central
Government and 6% to be further split between Provincial Government, and Regencies and/or cities in
the province. To date, AMNT is still working with the NTB regional government on a regional level
technical regulation which will provide detailed mechanisms on regional level proLit sharing.
In our Linancial statement, we presented two calculations for net income, i.e., net income before IUPK
PNBP and net income after IUPK PNBP. In 9M/2023, y-o-y comparison of net income (before IUPK PNBP)
showed a decrease of 70%; meanwhile, in Q3/2023, y-o-y comparison of net income (before IUPK PNBP)
showed a decrease of 44%.
The cumulative IUPK PNBP for 2020 – 2022 was US$158 million, which is all accounted in 2023. This is
due to the prolonged discussions regarding implementing regulations for payment mechanism. However,
starting next year, IUPK PNBP will be one year worth, as per the scheduled payment each year.
Adjusted C1 Cost
We have tracked adjusted C1 Cost, which we believe is more accurate due to the signiLicant amount of
stockpiles that would not be considered in the C1 Cash Cost, which is a metric representing the costs of
extracting and processing the Company's principal metal product, copper, to a condition in which it may be
delivered to customers net of gold and silver credits from concentrate sold. Our adjusted C1 Cost in Q3/2023
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was US$0.21 per lb, up from US$(0.52) per lb in Q3/2022. This was primarily due to the high amount of
stockpiles ore processed, which would have lower by-products credits compared to Q3/2022 when we
processed more fresh ore.
Capex
AMMAN’s total capital expenditure in Q3/2023 was US$480 million up by 119% compared to Q3/2022. The
breakdown is as follows: capital expenditure related to the need to purchase mining equipment, build and
upgrade supporting facilities for Phase 7 ore mining activities and Phase 8 waste removal (sustaining capex)
of US$110 million; smelter capex of US$137 million; processing plant expansion of US$138 million; and
combined cycle power plant (“CCPP”) and LNG facilities of US$94 million.
AMMAN’s mining and infrastructure projects continued to progress on schedule. Our accumulated spending
is up to US$476 million on copper smelter and PMR projects, which achieved 67.1% and 65.4% completion,
respectively, as of 30 September 2023. This copper smelter construction progress surpassed the target agreed
by the Government at 66.9% (100.15%). Additionally, our processing plant expansion projects havve an
accumulated spending of US$497 million in capital expenditure, while the CCPP and LNG facilities recorded
capital expenditure of US$251 million until September 2023.
Debt
As of the end of September 2023, AMMAN had a total debt of US$2,619 million, and a net debt of US$1,393
million. The debt maturity proLile has been structured to allow AMMAN to focus on its expansion program.
Maturity Balance
As of Sep 2023 Notes
date (US$ m)
Cash and cash
- 1,226
equivalents
Facility of US$1,295 m which includes a
US$275 m Letter of Credit (LC) facility.
AMIN Term Loan Facility 31-Dec-31 300
LC facility was reduced from US$325 m to
US$275 m in Nov 2022
Total AMIN debt 300
AMNT Working Capital
23-Dec-27 88 US$115 m in total availability
Loan
AMNT Term Loan Facility Facility of US$1,750 m loan facility with Dec
23-Dec-27 1,722
II 2027 maturity, fully drawn down in Jun 2023
AMNT Term Loan Facility Facility of up to US$750 m loan facility with
23-Dec-27 491
III Dec 2027 maturity
AMNT Term Loan 23-Dec-27 18 US$120 m in total availability
Total AMNT debt 2,319
Total debt 2,619
Total net debt 1,393
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Company Outlook
For FY 2023, we expect to produce 610,000 dmt of concentrate. This production target is driven by the high-
grade fresh ore from Phase 7 that will be mined and processed. It is important to focus on the production of
copper and gold rather than that for concentrate as the metal content of concentrate can change and revenues
are driven by the metal content of concentrate. There is a 5% correction in gold production for FY2023
guidance that we released in Q3/2023 compared to that in H1/2022. This correction is due to the total plant
shutdown for two weeks in Q3/2023 that caused out of sequence with mining operations.
Operating and Financial Measures Full Year 2023 Guidance
Copper production 337 Mlbs (million pounds)
Gold production 502 Koz (thousand ounces)
Smelter progress >70% (end December 2023 target)
Concentrate production 610,000 dry metric tons
CAPEX
Sustaining capex (including one-off capex) US$332 million
Smelter & PMR US$365 million
Processing plant expansion US$469 million
CCPP and LNG facilities US$226 million
Adjusted C1 cost US$(0.80) per lb
Smelter construction is expected to continue as scheduled, with a target completion of >70% by December
2023. Upon the mechanical completion of the smelter in May 2024, we will focus on the smelter
commissioning and production ramp-up for 4 – 5 months to produce the Lirst reLined metals.
Our guidance represents our expectations as of the date of this press release and may be subject to change.
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About AMMAN
PT Amman Mineral Internasional Tbk (IDX: AMMN) is the largest copper and gold producer listed on the
Indonesian Stock Exchange. Through its subsidiary, PT Amman Mineral Nusa Tenggara (“AMNT”), the
company owns and operates the Batu Hijau mine, Indonesia’s second-largest copper-gold mine. AMNT also
processes ore into concentrate, as well as conducts exploration activities at the Elang project. Through PT
Amman Mineral Industri (“AMIN”)'s subsidiary, a copper smelter and a precious metals reLinery (“PMR”) are
also being built and are targeted to be operational in 2024. Upon completion of the copper smelter and PMR
facilities, AMMAN will become a fully integrated mining-to-smelting business, situated near key end-market
regions in Asia. We are committed to leading with sustainable practices and creating a legacy of the best for
Indonesia.
Disclaimer
This press release and the information in it have been prepared by PT Amman Mineral Internasional Tbk.
(IDX: AMMN) solely for information purposes only and does not constitute a recommendation regarding any
securities of the Company. The information contained in this document should be considered in the context
of the circumstances prevailing at the time and is subject to change without notice and will not be updated to
reLlect material developments that may occur after the date hereof. Certain statements in these materials
constitute “forward-looking statements” and information with respect to the future Linancial condition,
results of operations and certain plans and objects of management of the Company and the Group. Such
forward-looking statements are made based on management’s current expectations or beliefs as well as
assumptions made by, and information currently available to, management. Neither the Company nor any of
its advisers assumes any responsibility to update forward-looking statements or to adapt them to future
events or developments.
Contacts
Media:
Kartika Octaviana, Vice President Corporate Communications & Investor Relations
communications@amman.co.id
Vemmy Febrianti, Corporate Secretary & Legal
corporate.secretary@amman.co.id
Investors / Analysts:
AMMAN
investor.relations@amman.co.id
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Additional Information
Mineral Exploration
Our Phase 7 ore mining at the Batu Hijau mine is currently underway and will continue through 2024.
Concurrently, Phase 8 waste removal is progressing as planned, and will commence Phase 8 ore mining in
2025 through 2030. Based on a series of ore reserves statements prepared by an independent mining
consultant with drilling and resource modeling in 2020, Phase 8 is expected to produce 460 Mt of ore
amounting to 3,815 Mlbs of copper, 5.2 Moz of gold, and 16.4 Moz of silver, effectively extending the mine life
for six years. We are committed to employing advanced techniques and reconLiguring mining sequences to
enhance productivity and efLiciency.
The Elang Deposit is one of the world's largest undeveloped porphyry copper and gold deposits and is located
in close proximity to the Batu Hijau mine. Once Phase 8 ore mining is completed, AMMAN intends to
commence production at the Elang mine from 2031 through 2046. The Elang mine will utilize the existing
processing infrastructure at Batu Hijau throughout its mine life. The ongoing DeLinitive Feasibility Study for
Elang is expected to be completed in 2024.
Expansion Projects
Processing and Power Facilities Expansion
We are expanding our processing plant to increase our capacity to 85 million tonnes per annum (“Mtpa”),
which is more than double our current capacity. This will enable us to process ore supply from Batu Hijau's
Phase 8 and Elang in the future, which is necessary for us to meet the growing demand for our products. At
the same time, we are constructing a 450 MW CCPP and its supporting LNG facilities. We remain committed
to minimizing our impact on the environment.
Smelter Construction
Currently, AMMAN is constructing copper smelter and PMR facilities with an aggregate input capacity of
900,000 metric tons per annum (“tpa”) of concentrate from Batu Hijau mine and future Elang mine. The
copper smelter will produce up to 222 kilo tonnes per annum (“Ktpa”) of copper cathode and 830 Ktpa of
sulfuric acid. Meanwhile, the PMR facility will receive 970 tpa anode slime input from the smelter. The PMR
facility will produce 18 tpa of gold bars, 55 tpa of silver bars, and 70 tpa of selenium. As of September 2023,
our smelter and PMR projects have reached 67.1% and 65.4% 1 of target completions, respectively, with
mechanical completion expected in May 2024. The construction of the smelter project is in line with
Indonesia’s strategic focus on downstream activities.
Export Permit
On 24 July 2023, AMMAN received an export permit granted by Indonesia’s Ministry of Trade to export
concentrate. The permit for 900,000 wet metric tons of concentrate is valid from July 24, 2023, to May 31,
2024, allowing us to immediately resume concentrate export and realize delayed revenue. In accordance with
Peraturan Menteri Keuangan No. 71/2023, we expect to pay export duty at a rate of 10% until May 31, 2024.
We will continue to communicate with the Government to increase our export license tonnage (as deemed
necessary) and continue exports of concentrate until our smelter is fully operational.
1 Note: Data veri3ied by a competent and independent third party and acknowledged by the Ministry of Energy and
Mineral Resources.
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