PT Bumi Resources Mineral Tbk. (BRMS) announced that as of the third quarter of 2024, it has recorded a revenue of US$ 108.5 million. This figure marks a remarkable 231% year-on-year (yoy) increase.
Dileep Srivastava, the Independent Director and Corporate Secretary of BUMI, stated that gold prices are projected to remain high throughout this year and into early 2025 amid ongoing geopolitical tensions.
"BRMS is in a strong position to continue its solid performance," he told CNBC Indonesia on Thursday (December 12).
Dileep continued, stating that the increase in production at the second plant in Palu last year has boosted gold production to 45,366 ounces by the third quarter of this year. This achievement has already surpassed the total production for 2023, which was 23,270 ounces, including third-quarter production of 18.6 thousand ounces.
"An 8.8% QoQ increase highlights the strong operational momentum of the company," he added.
Additionally, BRMS reported higher mineral resource estimates for River Reef and Hill Reef in Palu. Certified by AMC Consultants (Australia), this estimate shows 4.2 million ounces of gold resources with a grade of 4.9 g/t, with 89% designated for underground mining. This strengthens BRMS's long-term growth potential.
Furthermore, BRMS's flagship mine in Central Sulawesi, which holds reserves of 34.1 million ounces and resources of 40.2 million ounces with an average grade of 3.2 - 3.5 g/t, remains at the core of the company's growth strategy.
The company is currently operating two plants with a combined processing capacity of 4,500 tons per day and plans to expand with a heap leach facility with a capacity of 4,000 tons per day, scheduled for the first quarter of 2025.
Additionally, the commencement of underground mining at Block-1 Poboya, with a target grade of 4.9 g/t, is projected to increase gold production to 145.4 koz by 2027, a 165.6% increase.
Beyond CPM, BRMS holds 126.1 million tons of untapped reserves in Banten, Aceh, and Gorontalo, which is four times larger than CPM's reserves. The company's flagship asset, Gorontalo Minerals, is expected to begin operations in 2026 with a capacity of 2,000 tons per day to process gold (average grade 1.69 g/t), which will further enhance the company's long-term growth potential.
Dileep added that, for stock valuation, they are estimating a fair value for BRMS shares at Rp 550 per share.
"Based on the annualized 9M24 PBV of 5.2x, this represents a 40% discount compared to AMMN," he concluded.
