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PT Adaro Minerals Indonesia Tbk
Public Expose
Wednesday, 03 March 2025
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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.
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Business Overview
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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 Indonesia’s downstream initiatives.
Large coal reserves and resources, supporting long-term sustainable growth. Coal reserves: 173 Mt.
Coal resources: 975.6 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 sales volume growth, aiming to reach 5.6 – 6.1 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
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Company Overview
CCoWs Locations Resources and Reserves
Total Coal Total Coal
Compliance
Company / Locality Reserves Resources
Standard
(Mt) (Mt)
Lahai Coal - Haju
2.0 4.0 JORC
(Metallurgical)
Maruwai Coal - Lampunut
92.2 101.4 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 173.0 975.6
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Supply Chain: from Coal Terminal to Vessel Loading
Points
Barge-to-barge Barge-to-Barge
▪ Barge-to-Barge transfers are
done at Taboneo and North
Kelanis using floating crane
Barge-to-Vessel
Barge-to-Vessel (Taboneo)
▪ Safe for loading for a wide range of
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
▪ Dedicated stockpiles of 640kt
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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
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Our ongoing Investment in Facilities and
Infrastructure
Hauling Road Upgrade Fuel Storage Tank We continue advancing our
infrastructure projects to support
higher volume target. Our hauling
road upgrade project continue to
progress, along with the
construction of our second barge
loading conveyor.
Second Barge Loading Conveyor Employee Camp We completed the construction of
additional fuel storage tanks with
capacity of 2x1,500KL and
4x1,500KL in Lampunut and
Tuhup, as well as the 400 beds
new Tuhup camp in 2024.
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Aluminium Smelter in Kaltara Industrial Park
Scope of project is up to 1.5 Mt of aluminium production
Additional capacity of up to
500,000 tpa of Green
Additional capacity of up to Aluminum. We plan for this to be
500,000 tpa aluminum. powered by hydro.
Power generation will likely be a
hybrid of coal and renewables.
Production capacity: 500,000 tpa
aluminum. 9
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Progress of Aluminium Smelter Aluminium smelter: • In 4Q24, the construction on aluminium smelter area focused on the foundation and steel structure erection for anode and electrolysis plant. Jetty: • The construction of the raw material berthing area has been completed in 4Q24. • The installment of the conveyor belt structure and office building are still in progress. Supporting facilities: • The building foundation and upper structure work for the permanent dormitory are still in progress.
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Solid HSE Performance
• ADMR implements zero accident mindset 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 0.34 0.06
SR 0.47 0.71
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Corporate Social Responsibility
• As part of AlamTri Group, ADMR adopt
AlamTri’s corporate social responsibility (CSR)
vision, focusing on five main areas: economy,
education, health, socio-cultural, and
environment.
• CSR activities present the opportunities for the
company to communicate, interact, and get
closer to the communities, to obtain first-hand
information to help identify the main gaps for
enhancing the living standard in the surrounding
communities.
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Industry Overview
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Metallurgical Coal Prices
800
700
600
500
400
300
200
100
0
HCC PLV FOB Australia HCC PLV CFR China
The average price of premium low-volatile (PLV) hard coking coal (HCC) FOB Australia in 2024 declined 19% y-o-y to
approximately US$240/t. The lacklustre demand from China mainly drove the downturn in metallurgical coal prices.
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Seaborne Metallurgical Coal Demand and Supply Outlook
Global Metallurgical Coal Imports Demand (Mt) Global Metallurgical Coal Supply (Mt)
450 450
400 400
350 350
300 300
Million tonnes
Million tonnes
250 250
200 200
150 150
100 100
50 50
0 0
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
China India Japan South Korea Europe Others Australia Canada United States Mongolia Russia Mozambique Indonesia Others
Source: McCloskey
Demand growth, particularly from India and Southeast Asia, is expected to support a balanced supply and demand.
• The long-term outlook shows a positive and stable growth in demand, which positions Indonesia for sustained growth in both domestic and international markets.
• Demand:
• China continues to be the main steel producer, although India's steel production capacity is expected to surpass China's starting in 2030.
• India’s implementation of import restrictions on metallurgical coke signals a shift in trade dynamics, with expectations of a significant increase in metallurgical coal imports.
• India remains a key driver of metallurgical coal demand, with major steelmakers—including Tata Steel, JSW, JSPL, and ArcelorMittal Nippon Steel (AMNS)—pursuing ambitious
blast furnace expansions. These developments will further bolster the country’s metallurgical coal consumption, creating opportunities for global exporters, including Indonesia
• Supply:
• Australia continues to be the main supplier in the seaborne market, but supply growth is expected to face limitations, with periodic mine closures impacting availability later in the
decade.
• Russian supply is expected to remain constrained due to logistical challenges and geopolitical sanctions. 15
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Operational & Financial Highlight
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Strong Production & Sales
Growing Production with Low Strip Ratio Expanding Sales Volume (Mt)
30.0 4.0 +26% 5.6
3.7
3.6 4.5
25.0 23.6 3.2
2.3
3.0
20.0 2.5 18.7
2.2
15.0 2.0 2021 2022 2023 2024
10.0
Broad Market Demand (FY24)
8.3
6.6 1.0
5.2 5.1 Malaysia
5.0 3.4 2%
2.3 India
7%
0.0 0.0 South Korea Indonesia
14% 32%
2021 2022 2023 2024
Overburden removal (in million bcm) Coal production (in million tonnes)
China
Strip Ratio 16%
Japan
29%
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Financial Summary
OPERATIONAL PERFORMANCE FY24 FY23 % Change
Production (Mt) 6.6 5.1 30%
OB removal (Mbcm) 23.6 18.7 26%
Sales (Mt) 5.6 4.5 26%
FINANCIAL PERFORMANCE FY24 FY23 % Change
(in US$ million, except Earning per share)
Net revenue 1,154.2 1,086.0 6%
Gross profit 577.8 583.2 15%
Net profit 434.8 440.8 (1%)
Operating Income 540.3 574.6 (6%)
Core earnings 445.4 421.0 6%
Operational EBITDA 580.0 573.5 1%
Interest-bearing debt 295.8 420.7 (30%)
Net debt (cash) (316.8) (165.7) 91%
Capital expenditure 405.7 134.0 203%
Cash 612.6 586.4 4%
Free cash flow 155.8 194.6 (20%)
Earnings per share (full amount) 0.0107 0.0108 (1%)
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Key Metrics
FINANCIAL RATIO FY24 FY23 % Change
Gross profit margin 50.1% 53.7% (4%)
Net profit margin 37.7% 40.6% (2.9%)
Operating margin 46.8% 52.9% (6%)
Operational EBITDA margin 50.3% 52.8% (3%)
Net debt (cash) to equity (x) (0.21) (0.16) 32%
Net debt (cash) to last 12 months Operational EBITDA (x) (0.55) (0.29) 89%
Cash from operations to capex (x) 1.29 2.21 (42%)
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FY25 Guidance
Sales Volume (in Mt) Strip Ratio Capital Expenditure (in $ million)
3.7 3.6 406
3.3
5.6 - 6.1
5.6
300-325
4.5 2.5
2.2
3.2
2.3 134
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2021A 2022A 2023A 2024A 2025F 2021A 2022A 2023A 2024A 2025F 2021A 2022A 2023A 2024A 2025F
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Conclusions and Takeaways
• ADMR’s competitive strengths include: (i) a large coal reserves and resources, (ii) premium product quality, (iii) a
growing client base amongst blue-chip steel companies, and (iv) industry-leading cost structure.
• Production volume in FY24 reached 6.63 Mt, up 30% year-on-year. Sales volume reached 5.62 Mt, reflecting a 26%
year-on-year increase.
• Capital expenditure in FY24 reached $405.7 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.
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Thank You
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Names mentioned 6 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.11
unresolved
org
PT Maruwai Coal
p.21
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