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1. Overview of BORN
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BORN is a holding company, with all of its coking coal operations conducted through PT Asmin
Koalindo Tuhup “AKT”
AKT holds a 3rd generation Coal Contract of Work “CCoW” with favourable terms
PT Borneo Mining Services “BMS” owns mining equipment that it rents to AKT
BORN listed on the Indonesian Stock Exchange on 26 November 2010
Produced more than 3mt of hard coking coal in 2011
Completed acquisition of 23.8 stake in BUMI Plc on 20 January 2012
3
Notes:
1
As of 16 May 2012 at current exchange rates
2
As of 12 February 2012 at an exchange rate of 1 USD to 0.63 GBP; total shares of 241.0mm including nonvoting shares of 60.4mm
3
23.8 stake is held indirectly through two joint ventures with the Bakrie Group
From a greenfield concession acquired in 2008, BORN developed AKTs CCOW into Indonesias largest and most important coking coal producer
Current Corporate Structure Current Corporate Structure
PT Republik Energi Metal
PT Borneo Lumbung Energi Metal TBK Market Cap of US1,453MM
1
PT ASMIN KOALINDO
TUHUP
CCoW
PT BORNEO MINING
SERVICES
30
99.9 99.9
Public
70
BUMI Plc Market Cap of
US2,866MM
2
23.8
3
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Professional and diverse management team with extensive experience in world class firms
Deep expertise in all areas of mine development, engineering and operations
Dave Alister Tonkin AKT’s Operations Director
Samin Tan Founder
Eva Novita Finance Director
Alexander Ramlie President Director
Ken Allan Marketing Director
Peter Rod AKT’s Head of Mining
Operations
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To be a world class mining company with a diversified portfolio of high quality coal and metals assets with the following characteristics :
―
High margin products
―
Large resource base
―
Low production cost
―
Create value through developing greenfield assets
Drive value through aggressive production ramp ups, continuous productivity improvements, judicious use of available financing and capital, and strategic acquisitions
Creating Long Term Value for Shareholders
Create long term value for the benefit of all shareholders and stakeholders
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Within 3 years of Greenfield Acquisition, BORN Achieved Profitability
31 May 1999, AKT signed
the 3rd Generation
CCoW
Jan 10 Jan 09
Sep 2009, AKT
commenced commercial
production
31 Dec 2009, increased
production capacity to 2.4 mtpa at the
Kohong block
Future:
Increase production capacity to 10.0 and
15.0 mtpa by end of 2013 and 2018,
respectively
27 Oct 2007, BORN gained
full management control of AKT
1999 Jan 07
Jan 08
2 Jan 2008, start of
development and
construction
Jan 11 Jan 12
Production capacity increased to
3.6mtpa in 2010 at the Kohong block
Jan 2012, completed
23.8 investment
in BUMI Plc
Sep 2011, reserves increased to 132 mt
representing 90.4 growth from 70 mt
in June 2010
Nov 2010, listed on IDX and
raised US580MM
Notes:
1
CAGR calculated from 2005-2011
2
CAGR calculated from 2007-2011
Proven Track Record of Growing Reserves and Resources Proven Track Record of Growing Reserves and Resources
Resources CAGR
1
: 16.5
Reserves CAGR
2
: 32.1
mt
Nov 2005 Feb 2006
Apr 2007 Feb 2009
Jun 2010 Sep 2011
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Tremendous Production Upside and Long Reserve Life
Holds two coking coal deposits - Kohong and
Telakon blocks, within 21,630 hectares of
concession area
JORC compliant Reserves and
Resources of 131.8 mt and 319.8 mt,
respectively,
―
Equivalent to 28.6x 28.6 years
forecast production in 2012 of 4.4
million tonnes
CCoW production permitted until 2039
Production share “Royalty” 13.5
JORC Mineable Reserves at September 2011
mt Proved
Probable Total
Kohong 54.2
51.2 105.4
Telakon 11.6
14.7 26.4
Total 65.8
65.9 131.8
JORC Resources
mt Measured
Indicated Inferred
Total
Kohong 64.2
69.0 114.0
247.2
Telakon 11.8
27.7 33.1
72.6 Total
76.0 96.7
147.1 319.8
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Increase Self-sufficiency And Decrease Reliance On The Barito River
Alternative transportation route through Mahakam River a possible
mediumlong term solution
Haul road from mine to Melak port
8,000 tonne barges can be operated all year round
ISP at Damparan, to AKT design, 1MT stockpile, 3,000tph unload,
4,000tph loading capacity
On-river transshipment capability from 4,000 to 8,000 tonne barges
Mahakam River 355 km Existing logistics - Haul Road 36 km
Existing logistics - Barito River 290 km
Existing logistics - Barito River 272 km Haul Road 112 km
Taboneo anchorage
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2. BORN’s results and plans
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