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Executive Summary
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Overall financial performance as at YTD June 2017 better than YTD June 2016 and the Budget
Overall sales volumes at YTD June 2017 were higher than the Budget mainly due to increased production at Tabang.
Actual ASP was higher than the Budget as market prices remained above the Budgeted levels.
1) Revenue, Gross Profit include coal and non-coal sales ;
1) Average Selling Price includes coal and non-coal sales ; 2) Average Cash Costs include Royalty, Barging, SGA;
Revenue (1) 221.7 347.6 423.1 22%
Gross Profit (1) 65.4 136.1 214.1 57%
Gross Profit Margin 29% 39% 51% 29%
(in million USD)YTD June
2016
YTD June
2017 Budget
YTD June
2017 ActualVar
Sales Volume (milion MT) 5.4 8.1 8.4 3%
Coal Production (million MT) 3.7 8.4 8.4 0%
Average Selling Price (US$/MT) (1) 41.2 42.7 50.4 18%
Average Cash Costs (US$/MT) (2) 31.2 29.9 28.0 -6%
Var YTD June
2016
YTD June
2017 Actual
YTD June
2017 Budget
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Executive Summary - continued
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Sales volumes 2Q17 was 4.7 million MT which was higher than 1Q2017
and the Budget of 4.2 million MT mainly due to increased production at
Tabang.
2Q17 Coal Production achieved was 4.3 million MT which was principally
in line with the Budget of 4.3 million MT. However, it was higher than
1Q17 mainly due to the relocation of our contractor at Tabang to low strip
areas during the quarter in order to better match production and trucking
capacity, earlier commencement of mining at Wahana and the arrival of
additional mining fleets at PIK.
2Q17 SR was 3.9:1 which was principally in line with 1Q17 (3.8:1) and
the Budget of 3.9:1.
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Executive Summary - continued
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2Q17 Cash costs of US$ 28.6/MT was lower than the Budget of US$
29.5/MT mainly due to:
• Higher actual sales volumes which decreased certain unit costs
• Lower spend on material and spare parts as well as repair and maintenance
• Lower unit rates at Tabang in OB Removal, coal mining and hauling as a result of a discount received from subcontractor to increase the volumes from the original contract
• Lower than Budgeted demurrage;
• General lower actual fuel price rate which resulted decrease in barging cost and fuel consumption cost;
Partially offset by:
• Higher weighted stripping ratio at PIK and TSA/FKP;
• Higher royalty cost mainly due to higher ASP;
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2Q 2017
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Overburden Removal
Coal Production
Weighted Average Strip Ratio
Average Cash Costs
Coal Sales
Average Selling Price
Committed & Contractual Sales
Debt and Cash Position
Capex
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Overburden Removal (OB)
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(million BCM)
Overburden Removal
2Q17 Overburden removal of 17.1 million BCM was higher than the 1Q17 and 2Q17 Budget
15.0 17.1
1Q17 2Q17B 2Q17
16.6 2Q17 OB was 17.1 million
BCM which was higher than 1Q17 and the Budgeted mainly due to:
Contractor has mobilized additional equipment in 2Q17 to rectify the shortfall and new geological model was prepared to correct for the discrepancies (TSA/FKP)
Mobilization of additional mining fleets at PIK coupled with lower rainfall
2Q17B 2Q17
Gunungbayan Pratamacoal-
Block II1.5 -
Teguh Sinar Abadi/ Firman
Ketaun Perkasa6.1 8.2
Perkasa Inakakerta 1.7 2.3
Tabang Concessions 4.9 4.4
Wahana Baratama Mining 2.3 2.2
Total 16.5 17.1
Overburden Removal(in million BCM)
Note : B stands for Budget Figure
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Coal Production
(million MT)
Coal Production Volume
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2Q17 coal production of 4.3 million MT was in line with the 2Q17 Budget
4.0 4.3
1Q17 2Q17B 2Q17
4.3
2Q17 coal production of 4.3 million MT was principally in line with 2Q17 Budget, however it was higher than 1Q17 mainly due to :
The relocation of our contractor at Tabang to low strip areas during the quarter in order to better match production and trucking capacity and also as a result of higher rainfall which flooded certain sections of the working area
Earlier commencement of mining at Wahana
Arrival of an additional mining fleet in early April 2017 (PIK)
2Q17B 2Q17
Gunungbayan Pratamacoal- Block II 0.1 -
Teguh Sinar Abadi/ Firman Ketaun Perkasa 0.5 0.5
Perkasa Inakakerta 0.3 0.3
Tabang Concessions 3.2 3.3
Wahana Baratama Mining 0.2 0.3
Total 4.3 4.3
(in million MT)Production
Note : B stands for Budget Figure
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Actual Weighted Average Stripping Ratio (SR)
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Weighted Average Strip Ratio
2Q17 actual weighted average strip ratio of 3.9 : 1 was principally in line with 1Q17 and the 2Q17 Budget
3.8 3.9
1Q17 2Q17B 2Q17
3.8
2Q17 weighted average stripping ratio of 3.8: 1 was principally in line with 1Q17 and 2Q17 Budget
Higher SR at TSA/FKP in 2Q17 compared to the Budget due to change in scheduling required to develop the pit at higher production rate compared to Budget and variations in the geological model
Higher stripping ratio at PIK due to change in production plan following the contractor’s Q2 equipment deliveries counteracting operating at lower strip ratios in Q1 2017
2Q17B 2Q17
Gunungbayan Pratamacoal Block II 16.3 -
Teguh Sinar Abadi/Firman Ketaun Perkasa 12.1 17.5
Perkasa Inakakerta 6.7 8.6
Tabang Concessions 1.5 1.3
Wahana Baratama Mining 10.0 8.3
Total 3.8 3.9
Weighted Ave SRWeighted Average SR (:1)
Note : B stands for Budget Figure
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Average Cash Costs per MT(*)
Average Cash Costs
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(1) Average Cash Costs include Royalty, Barging, SGA (2) US$ is a convenience translation using the average quarterly
exchange rate for the quarter numbers (3) B stands for Budget Figure
(U
S$
/ M
T)
*
2Q17 Average Cash Costs were lower than the Budget of US$29.5/MT mainly due to:
• Higher actual sales volumes which decreased certain unit costs
• Lower spend on material and spare parts as well as repair and maintenance
• Lower unit rates at Tabang in OB Removal, coal mining and hauling as a result of a discount received from subcontractor to increase the volumes from the original contract
• Lower than Budgeted demurrage;
• General lower actual fuel price rate which resulted decrease in barging cost and fuel consumption cost;
Partially offset by:
• Higher weighted stripping ratio at PIK and TSA/FKP;
• Higher royalty cost mainly due to higher ASP;
27.2 28.6
1Q17 2Q17B 2Q17
29.5
2Q17 average cash costs were US$ 28.6/MT which was lower than the Budget of US$ 29.5/MT
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Coal Sales (by volume)
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(million MT)
Coal Sales Volume
3.7
4.7
1Q17 2Q17B 2Q17
4.2
2Q17 coal sales volume of 4.7 million MT was higher than 1Q17 and 2Q17B mainly due to changes in shipping schedule.
India and China are the top two destinations in 2Q2017
Top Customers 2Q17 (by Sales Volume) are TNB Fuel, Noble Resources and Sembcorp Gayatri Power Limited
2Q17 coal sales volume was 4.7 million MT which was higher than 1Q17 and 2Q17 Budget due to changes in shipping schedule
Note : B stands for Budget Figure
Geographic Distribution (1Q17)
India
25%
China
21%
Philippines
13%
Korea
11%
Indonesia
9%
Thailand
4%
Singapore
3%
Others
14%
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Average Selling Price (ASP)
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(U
S$
/ M
T)
Average Selling Price (*)
2Q17 ASP was US$ 50.2/ MT which was higher than the Budget as the Company benefited from more exposure to the current higher benchmark prices
(1) ASP includes coal and non-coal sales (2) US$ is a convenience translation using the average quarterly
exchange rate for the quarter numbers (3) B stands for Budget Figure
*
50.7 50.2
1Q17 2Q17B 2Q17
40.9
2Q17 ASP was US$ 50.2/MT which was marginally lower than 1Q17 of US$ 50.7/MT but higher than the Budget of US$ 40.9 due to:
Higher benchmark prices in 2Q17 than the 2Q17 Budget (US$ 79.8/MT vs US$ 65.0/MT)
2Q17 average CV was 4,682 GAR kcal compared to 1Q17 at 4,707 GAR kcal
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EBITDA
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Note : B stands for Budget Figure
2Q17 EBITDA generation was stronger than Budgeted due to:
Higher than Budgeted ASP
Higher than Budgeted sales volume
Lower than Budgeted Cash Costs
86.8
101.6
1Q17 2Q17B 2Q17
46.8
(US$ Million)
EBITDA
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Committed and Contracted Sales for 2017
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2017
Fixed Price Floating Price
17.7 million MT
72%
28%
Note : June 2017
As at 30 June 2017 committed and contracted sales were 17.7 million MT with an average CV of 4,629 GAR kcal
2017 Fixed Price element at US$
45.69/ MT with an average CV of 4,613 GAR kcal
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Net Debt and Cash
As of 30 June 2017, the total TLF Loan was US$ 399.2 million (excluding PIK Interest)
The Company reduced the Net Debt to EBITDA to 0.86x as at 30 June 2017
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470.3 465.6 465.4
429.9
318.3
263.1
88.1 85.3 83.7 70.4
119.9 156.2
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
Net Debt Cash Note : Total Net Debt and Cash + Debt Service Reserve Account (DSRA)
(in
mil
lio
n U
S$
)
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Capital Expenditure
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CAPEX (*)
* US$ is a convenience translation using the average annual exchange rate; * B stands for Budget Figure
2Q17 Capex was US$ 14.3 million which was higher than the Budget of US$ 11.9 million, principally consisted of:
Heavy equipments (i.e. Komatsu Bulldozer, Dump Trailer and Terrain Crane)
Tabang related infrastructure at Senyiur Jetty (i.e. Palu Gravel, relocation & re installment of Silo from Pakar to ICF)
11.9
14.3
2Q17B 2Q17
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PT Perkasa Inakakerta PIK
PT Teguh Sinarabadi TSA
PT Firman Ketaun Perkasa FKP
PT Wahana Baratama Mining WBM
PT Fajar Sakti Prima FSP
PT Bara Tabang BT
PT Brian Anjat Sentosa BAS
PT Tanur Jaya TJ
PT Silau Kencana SK
PT Orkida Makmur OM
PT Tiwa Abadi TA
PT Sumber Api SA
PT Dermaga Energi DE
PT Bara Sejati BS
PT Apira Utama AU
PT Cahaya Alam CA
PT Mamahak Coal Mining MCM
PT Bara Karsa Lestari BKL
PT Mahakam Energi Lestari MEL
PT Mahakam Bara Energi MBE
PT Graha Panca Karsa GPK
Tabang
Pakar
Mamahak
Appendix
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Appendix
Kangaroo Resources Limited KRL
PT Dermaga Perkasapratama DPP
PT Indonesia Pratama IP
PT Muji Lines Muji
PT Bayan Energy BE
PT Metalindo Prosestama MP
PT Sumber Aset Utama SAU
PT Karsa Optima Jaya KOJ
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Disclaimer
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This presentation contains forward-looking statements based on assumptions and forecasts made by PT. Bayan Resources Tbk management. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and speak only as of the date they are made. We undertake no obligation to update any of them in light of new information or future events. These forward-looking statements involve inherent risks and are subject to a number of uncertainties, including trends in demand and prices for coal generally and for our products in particular, the success of our mining activities, both alone and with our partners, the changes in coal industry regulation, the availability of funds for planned expansion efforts, as well as other factors. We caution you that these and a number of other known and unknown risks, uncertainties and other factors could cause actual future results or outcomes to differ materially from those expressed in any forward-looking statement.
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Thank You
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