J Resources Company Presentation Mar17
Company Presentation
March 2017
Disclaimer
This presentation has been prepared by the management of PT J Resources Asia Pasifik Tbk (the “Company”) for information purposes. By accepting this presentation,
the recipient of this presentation (the “Recipient”) acknowledges and agrees that all of the information contained in this presentation is confidential.
The information contained in this presentation has not been independently verified. Acceptance of this presentation constitutes the Recipient’s acknowledgement and
agreement that none of the Company nor any of its respective directors, officers, employees, affiliates, agents or advisors (including, without limitation, attorneys,
accountants, consultants, financial advisors and any representatives of such advisors) (collectively, “Associates”) makes, and they expressly disclaim, any
representation or warranty, express or implied, as to the accuracy or completeness of the information in this presentation, or any other written or oral communication
transmitted or made available to a Recipient, or as to the existence, substance or materiality of any information omitted from this presentation. The Company and its
respective Associates disclaim any and all liability for any loss or damage (whether foreseeable or not) suffered or incurred by any person or entity relating to or resulting
from the use of this presentation or any errors herein or omissions of any information from this presentation, and by accepting this presentation, the Recipient agrees that
none of the Company or any of its respective Associates shall have any liability to the Recipient or any of its Associates relating to or resulting from the use of this
presentation or any errors herein or omissions of any information from this presentation.
This presentation does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company or any of its respective Associates
in any jurisdiction or an inducement to enter into investment activity, nor may it or any part of it form the basis of or be relied on in connection with any contract or
commitment whatsoever.
By attending this presentation, participants agree not to remove this document, or any materials provided in connection herewith, from the conference room where such
documents are provided. Participants agree further not to photograph, copy or otherwise reproduce these materials in any form or pass on these materials to any other
person for any purpose, during the presentation or while in the conference room. Participants must return this presentation and all other materials provided in connection
herewith to the Company at the completion of the presentation.
This presentation contains statements that constitute forward-looking statements. Any statements set forth herein that are not historical facts are forward-looking
statements. These statements include, among others, 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. In some cases, these statements can be recognized by the use of words such as “may,”
“should,” “expects,” “believe,” “anticipate” “plans,” “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. Except as required under applicable law, the Company undertakes no obligation to update or revise any forward-looking statements, whether
as a result of new information, future events, different circumstances or otherwise.
This presentation is not an offer of securities for sale in the United States. Any securities referred to herein have not been and will not be registered under the US
Securities Act of 1933, as amended, (“U.S. Securities Act”) or any state securities laws in the United States and may not be offered or sold within the United States,
except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in accordance with any applicable
United States state securities laws. There is no intention to register any securities referred to herein in the United States or to make a public offering of the securities in
the United States.
2
This presentation will not be distributed or passed on in the Republic of Indonesia or to Indonesian citizen, nationals, corporations or residents and the securities
referred to herein will not be offered or sold in the Republic of Indonesia or to Indonesian citizen, nationals, corporations or residents, in each case, in a manner, which
constitutes a public offering of the securities under the Law of the Republic of Indonesia No. 8 of 1995 on Capital Markets and its implementing regulations.
Leading Gold Mining Company in Southeast Asia
Leading
Indonesian Gold
Miner
Indonesian independent gold producer
EBITDA and Margin
(US$mm, %)
51.6%
48.7%
44.5%
~200 koz per annum production for the last 3
years, derived mainly from our operating
Indonesian assets
50.0%
140
125
121
0.0%
US$120-140mm EBITDA, running at ~50%
margins (2014-2016)
-50.0%
-100.0%
We understand, develop and mine low gradeepithermal deposits and heap leach systems
-150.0%
-200.0%
2014A
2015A
EBITDA
2016A
EBITDA Margin
Total Reserve and Resource Base1
(koz)
Balanced Set of
Assets – Key to
Our Growth
Potential
Total
3,921
Inferred
1,259
Indicated
2,067
Measured
1,060
4 producing mines: Bakan (Sulawesi), Seruyung (North Kalimantan), Penjom (Malaysia) and North Lanut
(Sulawesi)
4 project pipeline: Pani and Doup in Development Stage, Bolangitang and Bulagidun in Exploration Phase with
confirmed discoveries. All are in the Northern arm of Sulawesi
Source: Public Company Data.
Notes: 1. Ore Reserves and Mineral Resources Estimate published for 31 December 2016 in accordance with JORC 2012 Code and the KCMI 2011 Code.
3
1,840
3,127
Total
3,127 koz Total Reserve and 7,020 koz Total
Resources as of December 20162
7,020
Probable
Listed on the Indonesia Stock Exchange in January
2012 as PT J Resources Asia Pasifik Tbk (“J
Resources” or the “Company”, PSAB IJ)
Resources
Proven
Large Reserve
and Resource
Base
Reserves
Corporate Structure and Assets
J Resources
Mining Limited1
Public
7.50%
92.50%
PT J Resources Asia Pasifik Tbk2
Minority9
1.13%
98.87%
PT J RESOURCES NUSANTARA3
100.00%
100.00%
99.80%
80.00%
Minority10
99.80%
99.50%
99.90%
20.00%
J&P Resources Gold
OHQ (Malaysia)
SDN. BHD.8
J Resources
Netherland B.V.6
100.00%
J Resources Gold
(UK) Limited7
PT J Resources
Mining Services
Indonesia5
PT J Resources
Bolaang Mongondow4
COW
Bakan
Mine
PT Sago
Prima Pratama
IUP
Seruyung Mine
PT Arafura Surya Alam
IUP
Doup
Deposit
PT Gorontalo
Sejahtera Mining
COW
Pani Deposit
100.00%
Specific Resources
SDN. BHD
Penjom Mine
North Lanut
Mine
Bolangitang
Discovery
Bulagidun Discovery
Source: Public Company Data.
Producing Mine
Development Stage
Exploration Stage
Notes:
1. J Resources Mining Limited (formerly known as J&Partners Asia Limited) – Hong Kong incorporated holding
company.
6. J Resources Netherland B.V. (formerly known as Avocet B.V.).
2. PT J Resources Asia Pasifik Tbk (formerly known as PT Pelita Sejahtera Abadi Tbk).
7. J Resources Gold (UK) Limited (formerly known as Avocet Gold Limited).
3. PT J Resources Nusantara (formerly known as PT Bara Kutai Energi).
8. J&P Resources Gold OHQ (Malaysia) SDN. BHD. (formerly known as Avocet Mining (Malaysia) OHQ SDN. BHD.).
4. PT J Resources Bolaang Mongondow (formerly known as PT Avocet Bolaang Mongondow).
9. PT. Mentari Bukit Makmur, Johan Lensa, Lenny Hermawaty Tjioe and Rusmin.
5. PT J Resources Mining Services Indonesia (formerly known as PT Avocet Mining Services).
10. PT. Lebong Tandai.
4
Successful Growth Story
2012 – ESTABLISHMENT YEAR
Listed on IDX in January 2012
Added more than 1 Moz of gold in
new resources with a major drilling
campaign
Completed feasibility and
environmental studies for Bakan
and Seruyung
2014 – PRODUCTION YEAR
2016 – PERSEVERANCE YEAR
Bakan & Seruyung commenced commercial
production
2014 production of 223 Koz from 4 mines
(Seruyung, Bakan, North Lanut & Penjom)
New experienced Geologist and Metallurgist
team was on boarded
2013
Exploration expands the resource inventory by another 1Moz to 7Moz
Exploration delivers a 50% increase in resource to reserve conversion from
2Moz to 3Moz
Reaches total of 878koz of gold produced since its inception in mid-2011
2014
2016
2015
2012
2011
Jun 2011 – CONSOLIDATION YEAR
Contract mining company
Acquired the gold portfolio of Avocet Mining midyear in Indonesia & Malaysia
Inherited two producing assets with a combined
annual production of 100 Koz. *note from the
Seller: North Lanut only last 1 year
Obtained syndication loan of US$275m for
Bakan & Seruyung mines
Fast-tracked development of Bakan &
Seruyung assets into production stage in
one year
J Resources becomes a signatory to the
International Cyanide Management
Institute (ICMI) Code
Indonesian licenses were close to expiry
Reserves = 493 Koz Au
Jun 2011 Resources = 3,200 Koz Au
Source: Public Company Data,
5
2013 – DEVELOPMENT YEAR
5 years
2015 – SUSTAINABILITY YEAR
Seruyung & Bakan achieve signatory status to
the ICMI Code in January 2015
Received ISO:14001 for all 4 producing mines
in May 2015
Annual gold output 245Koz
Obtained syndication loan of US$208.5m on
Feb’16 to develop existing 4 mines and
additional 4 mines (Pani, Bolangitang,
Bulagidun and Doup)
2016
Reserves = 3,127 Koz Au
Resources = 7,020 Koz Au
Diversified Mine Portfolio
The Company has a geographically diverse portfolio of assets across Malaysia and Indonesia
BAKAN (80% Owned1)
• Producing since Dec-2013
• Contract expiration: 2034
• Reserve: 621koz
• Resource: 1,409koz
• Processing: Dynamic Heap Leach
• Ex-Newmont asset
SERUYUNG (99.8% Owned1)
• Producing since 2014
• Contract expiration: 2033
• Reserve: 330koz
• Resource: 504koz
• Processing: Dynamic Heap Leach
• Ex-Indochina (Ivanhoe) asset
BULAGIDUN (99.9% owned1)
• Exploration stage
• Copper & gold
• Ex-BHP asset
BOLANGITANG (99.9% owned1)
• Exploration stage
• Gold & silver
• Ex-BHP asset
Malaysia
Manado Office
KL Office
Indonesia
PENJOM (100% Owned1)
• Producing since 1996
• Contract expiration: 2025
• Reserve: 578koz
• Resource: 1,463koz
• Processing: Resin-in-Leach
NORTH LANUT (80% Owned1)
• Producing since 2004
• Contract expiration: 2034
• Reserve: 157koz
• Resource: 452koz
• Processing: Dynamic Heap Leach
• Ex-Newmont asset
Source: Public Company Data,
Notes: 1. % owned by PT J Resources Nusantara.
6
Jakarta Office
Legend:
Producing assets
Development assets
Exploration assets
Properties
Offices
PANI (99.9% owned1)
• Development stage
• Reserve: 207koz
• Resource: 971koz
• Ex-BHP asset
DOUP (99.5% owned1)
• Development stage
• Reserve: 1,234koz
• Resource: 2,222koz
• Ex-Placer-Dome and
BHP asset
A Leader In Cost Efficiency and Exploration
Processing Rate
Mining Rate
(US$/Ton)
(US$/Ton)
3.1
14.0
1.5
3.9
Jun-11
Dec-16
Dec-16
Discovery to Resource Cost
All-In Sustaining cost2
Cash Cost1
(US$/oz)
Jun-11
(US$/oz)
(US$/oz)
1,133
1,202
594
27.1
683
11.7
Jun-11
Dec-16
Jun-11
Dec-16
Jun-11
Source: Public Company Data,
Notes: 1. Cash Cost includes mining, processing, SGA and royalty costs. 2. All-In Sustaining Cost, including cash cost, sustaining CAPEX, exploration cost and employee benefit (World Gold Council).
7
Dec-16
Solid Operating Performance
Gold Production
Revenue
(Koz)
(US$mm)
223
245
280
287
235
192
67
2013A
78
2014A
2015A
2016A
2013A
2014A
2015A
2016A
Total Debt1/EBITDA
EBITDA and Margin
(x)
(US$mm, %)
23.1x
22.5%
44.5%
48.7%
51.6%
50.0%
125
140
3.2x
0.0%
121
2.4x
-50.0%
2.6x
-100.0%
18
-150.0%
-200.0%
2013A
2014A
EBITDA
2015A
2016A
2013A
EBITDA Margin
Source: Public Company Data.
Notes: 1. Debt includes loans from related parties, loans from third party, loans from non-bank financial institutions, finance lease and bank loans.
8
2014A
2015A
2016A
Low Cost Structure (Cont’d)
Mining Rate Trend
(US$ / Ton)
6.3
4.5
3.1
2.5
2.5
2.0
2H-2011
1H-2012
4.0
3.0
2.0
1.7
2.3
1.3
2H-2012
1H-2013
21.2
21.4
4.2
2.3
2.9
2.0
Total
3.3
2.4
2.3
2.3
2.0
2.1
2.1
1.9
Indonesia
1.1
Malaysia
1.2
1.6
1.5
1.5
1.4
1.4
1.1
1.3
2H-2013
1H-2014
2H-2014
1H-2015
2H-2015
1H-2016
2H-2016
15.0
15.1
8.6
9.6
Processing Rate Trend
(US$ / Ton)
20.3
20.1
16.9
14.0
11.3
10.0
2H-2011
7.4
1H-2012
Source: Company Data.
9
12.3
10.0
9.1
9.0
8.6
5.7
2H-2012
17.3
1H-2013
6.6
2H-2013
6.0
5.8
5.0
4.8
3.8
4.1
4.7
1H-2014
4.4
2H-2014
3.5
1H-2015
3.4
2H-2015
2.7
1H-2016
3.0
2H-2016
Total
Indonesia
Malaysia
Sustainable Low Cost Leadership
Cash Cost1, AISC2 and Cash Cost Margin
(US$/oz)
73.4%
55.5%
51.3%
48.4%
1,182
1,054
785
697
665
600
2013A
2014A
Cash cost
2015A
AISC
683
594
2016A
Cash Cost Margin
Notes: 1.Cash Cost includes mining, processing, SGA and royalty costs. 2. All-In Sustaining Cost, including cash cost, sustaining CAPEX, exploration cost, employee benefit and deferred mining cost (World
Gold Council).
10
Proven Reserve and Resource Growth Track Record
Post mine Avocet acquisition, the rate of Reserves replenishment has been over 3x times higher than the rate of its annual
production, resulting an significant Reserves increase of +39.8% CAGR from Jun-11 to 2016
Continuous Production Growth…
(koz)
3,127
3,500
3,000
2,500
2,000
1,500
1,000
493
(50)
(101)
(67)
(223)
2012A
2013A
2014A
500
(245)
(192)
2015A
2016A
0
(500)
Jun-11
Dec-11
Production
2016A
Reserves
Exceeded by Reserve Growth…
(koz)
3,127
1,815
493
Jun-11
Source: Company.
11
893
929
Dec-11
2012A
1,968
1,204
2013A
2014A
2015A
2016A
Proven Reserve and Resource Growth Track Record (Cont’d)
Resources replenishment have been consistently done in a prudent and cost effective manner and critical foundation for the
Company’s long-term Reserves growth
Resources Continue to Grow…
(koz)
7,020
3,200
3,087
Jun-11
Dec-11
3,940
4,132
2012A
2013A
5,915
5,148
2014A
2015A
2016A
… while Improving Resource Discovery Cost
(koz, US$/oz)
53.9
1,339
1,238
1,012
953
27.1
18.3
257
2012A
2013A
Additional Resource (koz)
Source: Company.
12
2014A
10.1
11.7
2015A
2016A
Resource Discovery Cost (US$ / oz)
Large Asset Base for Continued Reserve Growth
Potential upside of resource-to-reserve ratio given large asset base for continued reserve growth
Gold Reserves
(koz)
Reserve-to
Resource
Ratio (%)
15%
10,000
29%
24%
29%
35%
33%
45%
7,020
8,000
5,144
6,000
4,000
3,200
4,129
3,940
3,088
493
3,127
1,968
1,814
1,204
929
893
2,000
5,915
0
49
96
67
101
223
192
245
(2,000)
Jun-11
Dec-11
2012A
2013A
2014A
Ore Reserves
Mineral Resources
2015A
2016A
Production
Reserve-to-Resource ratio (2016)
(%)
76.6%
Median: 45%
27.3%
25.5%
IAMGOLD
Alamos Gold
38.2%
13
38.9%
SEMAFO
Goldcorp
41.5%
44.5%
45.7%
46.3%
48.8%
57.4%
58.1%
63.8%
31.5%
Yamana Gold
Agnico-Eagle
Mines
Source: Company.
38.4%
55.4%
Tahoe
Resources
J Resources
Kinross Gold
Barrick Gold
Eldorado Gold
Centerra Gold
Alacer Gold
Newmont Mining
New Gold
Detour Gold
Experienced Management with Proven Track Record
16 years of industry experience
41 years of industry experience
President Director - PT Bukit Makmur Istindo Nikeltama (2010-2013)
Director - PT Bukit Makmur Mandiri Utama (2001-2009)
Co-founder - J&Partners (2010-present)
President Director - PT Bukit Makmur Mandiri Utama (2009–2012)
Director - PT Bukit Makmur Widya (2009-2012)
Business Operation Director - PT Pamapersada Nusantara (1992 -2001)
Vice President Director - PT Bukit Makmur Mandiri Utama
(2004-2007)
Jimmy Budiarto
President Director
Early career with PT United Tractors Tbk.
Budikwanto Kuesar
Director
Over 35 years of business experience
30 years of industry experience
President Director - PT Berau Coal (2005-2006)
Deputy Regional Head - PT Bank Universal Tbk. (1996-2003)
Chief Financial Officer - PT Bukit Makmur Mandiri Utama (2000-2009)
Credit Review Division - PT Bank Perniagaan Indonesia (1987-1989)
Commissioner - PT Berau Coal (2006-2009)
Financial Director - PT Bukit Makmur Istindo (2004–2011)
Deputy President Director - PT Berau Coal (2004-2005)
Christian Wijayanto A. J.
President Commissioner
Private Banking Division - PT Bank Bali Tbk. (1986-1996)
William Surnata
Director
Over 27 years of business experience
19 years of industry experience
General Manager Operations at Intrepid Mines (2010-2011)
Manager – Employee & Industrial - INCO (2005-2006)
Director - External Relations - INCO (2006-2011)
VP, Business Development at Buena Group (2012-2013)
Manager - Human Resources & Business Systems - INCO (2004-2005)
Exploration Manager SE Asia - Newmont Asia Pacific (1999-2010)
Early career with PT International Nickel (INCO)
Project Manager BHP Minerals (BHP Billiton, 1990-1999)
Adi Maryono
Vice President Exploration
Over 32 years of business experience
34 years of industry experience
Environmental Advisor - PT Meares Soputan Mining (2006-present)
President Director - Laing O’Rourke Indonesia (2009-2010)
Environmental Advisor - PT Prasadha Pamunah Limbah (2008-present)
Environmental Legal Specialist - PT Freeport Indonesia (2005-present)
Chairman – Indonesian Environmental Law Dev. Assoc. (1984-present)
Prof. M. Daud Silalahi, SH
Independent Commissioner
Source: Public Company Data.
14
Edi Permadi
Director
Chief Executive - Arsari Resources Group (2011)
GM, Strategic Planning - Leighton Contractors Indonesia (2005-2008)
Early career with Anglo American, BP Minerals, Pelsart & Austindo Group
Colin J. Davies
Independent Director
March 2017
Disclaimer
This presentation has been prepared by the management of PT J Resources Asia Pasifik Tbk (the “Company”) for information purposes. By accepting this presentation,
the recipient of this presentation (the “Recipient”) acknowledges and agrees that all of the information contained in this presentation is confidential.
The information contained in this presentation has not been independently verified. Acceptance of this presentation constitutes the Recipient’s acknowledgement and
agreement that none of the Company nor any of its respective directors, officers, employees, affiliates, agents or advisors (including, without limitation, attorneys,
accountants, consultants, financial advisors and any representatives of such advisors) (collectively, “Associates”) makes, and they expressly disclaim, any
representation or warranty, express or implied, as to the accuracy or completeness of the information in this presentation, or any other written or oral communication
transmitted or made available to a Recipient, or as to the existence, substance or materiality of any information omitted from this presentation. The Company and its
respective Associates disclaim any and all liability for any loss or damage (whether foreseeable or not) suffered or incurred by any person or entity relating to or resulting
from the use of this presentation or any errors herein or omissions of any information from this presentation, and by accepting this presentation, the Recipient agrees that
none of the Company or any of its respective Associates shall have any liability to the Recipient or any of its Associates relating to or resulting from the use of this
presentation or any errors herein or omissions of any information from this presentation.
This presentation does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company or any of its respective Associates
in any jurisdiction or an inducement to enter into investment activity, nor may it or any part of it form the basis of or be relied on in connection with any contract or
commitment whatsoever.
By attending this presentation, participants agree not to remove this document, or any materials provided in connection herewith, from the conference room where such
documents are provided. Participants agree further not to photograph, copy or otherwise reproduce these materials in any form or pass on these materials to any other
person for any purpose, during the presentation or while in the conference room. Participants must return this presentation and all other materials provided in connection
herewith to the Company at the completion of the presentation.
This presentation contains statements that constitute forward-looking statements. Any statements set forth herein that are not historical facts are forward-looking
statements. These statements include, among others, 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. In some cases, these statements can be recognized by the use of words such as “may,”
“should,” “expects,” “believe,” “anticipate” “plans,” “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. Except as required under applicable law, the Company undertakes no obligation to update or revise any forward-looking statements, whether
as a result of new information, future events, different circumstances or otherwise.
This presentation is not an offer of securities for sale in the United States. Any securities referred to herein have not been and will not be registered under the US
Securities Act of 1933, as amended, (“U.S. Securities Act”) or any state securities laws in the United States and may not be offered or sold within the United States,
except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in accordance with any applicable
United States state securities laws. There is no intention to register any securities referred to herein in the United States or to make a public offering of the securities in
the United States.
2
This presentation will not be distributed or passed on in the Republic of Indonesia or to Indonesian citizen, nationals, corporations or residents and the securities
referred to herein will not be offered or sold in the Republic of Indonesia or to Indonesian citizen, nationals, corporations or residents, in each case, in a manner, which
constitutes a public offering of the securities under the Law of the Republic of Indonesia No. 8 of 1995 on Capital Markets and its implementing regulations.
Leading Gold Mining Company in Southeast Asia
Leading
Indonesian Gold
Miner
Indonesian independent gold producer
EBITDA and Margin
(US$mm, %)
51.6%
48.7%
44.5%
~200 koz per annum production for the last 3
years, derived mainly from our operating
Indonesian assets
50.0%
140
125
121
0.0%
US$120-140mm EBITDA, running at ~50%
margins (2014-2016)
-50.0%
-100.0%
We understand, develop and mine low gradeepithermal deposits and heap leach systems
-150.0%
-200.0%
2014A
2015A
EBITDA
2016A
EBITDA Margin
Total Reserve and Resource Base1
(koz)
Balanced Set of
Assets – Key to
Our Growth
Potential
Total
3,921
Inferred
1,259
Indicated
2,067
Measured
1,060
4 producing mines: Bakan (Sulawesi), Seruyung (North Kalimantan), Penjom (Malaysia) and North Lanut
(Sulawesi)
4 project pipeline: Pani and Doup in Development Stage, Bolangitang and Bulagidun in Exploration Phase with
confirmed discoveries. All are in the Northern arm of Sulawesi
Source: Public Company Data.
Notes: 1. Ore Reserves and Mineral Resources Estimate published for 31 December 2016 in accordance with JORC 2012 Code and the KCMI 2011 Code.
3
1,840
3,127
Total
3,127 koz Total Reserve and 7,020 koz Total
Resources as of December 20162
7,020
Probable
Listed on the Indonesia Stock Exchange in January
2012 as PT J Resources Asia Pasifik Tbk (“J
Resources” or the “Company”, PSAB IJ)
Resources
Proven
Large Reserve
and Resource
Base
Reserves
Corporate Structure and Assets
J Resources
Mining Limited1
Public
7.50%
92.50%
PT J Resources Asia Pasifik Tbk2
Minority9
1.13%
98.87%
PT J RESOURCES NUSANTARA3
100.00%
100.00%
99.80%
80.00%
Minority10
99.80%
99.50%
99.90%
20.00%
J&P Resources Gold
OHQ (Malaysia)
SDN. BHD.8
J Resources
Netherland B.V.6
100.00%
J Resources Gold
(UK) Limited7
PT J Resources
Mining Services
Indonesia5
PT J Resources
Bolaang Mongondow4
COW
Bakan
Mine
PT Sago
Prima Pratama
IUP
Seruyung Mine
PT Arafura Surya Alam
IUP
Doup
Deposit
PT Gorontalo
Sejahtera Mining
COW
Pani Deposit
100.00%
Specific Resources
SDN. BHD
Penjom Mine
North Lanut
Mine
Bolangitang
Discovery
Bulagidun Discovery
Source: Public Company Data.
Producing Mine
Development Stage
Exploration Stage
Notes:
1. J Resources Mining Limited (formerly known as J&Partners Asia Limited) – Hong Kong incorporated holding
company.
6. J Resources Netherland B.V. (formerly known as Avocet B.V.).
2. PT J Resources Asia Pasifik Tbk (formerly known as PT Pelita Sejahtera Abadi Tbk).
7. J Resources Gold (UK) Limited (formerly known as Avocet Gold Limited).
3. PT J Resources Nusantara (formerly known as PT Bara Kutai Energi).
8. J&P Resources Gold OHQ (Malaysia) SDN. BHD. (formerly known as Avocet Mining (Malaysia) OHQ SDN. BHD.).
4. PT J Resources Bolaang Mongondow (formerly known as PT Avocet Bolaang Mongondow).
9. PT. Mentari Bukit Makmur, Johan Lensa, Lenny Hermawaty Tjioe and Rusmin.
5. PT J Resources Mining Services Indonesia (formerly known as PT Avocet Mining Services).
10. PT. Lebong Tandai.
4
Successful Growth Story
2012 – ESTABLISHMENT YEAR
Listed on IDX in January 2012
Added more than 1 Moz of gold in
new resources with a major drilling
campaign
Completed feasibility and
environmental studies for Bakan
and Seruyung
2014 – PRODUCTION YEAR
2016 – PERSEVERANCE YEAR
Bakan & Seruyung commenced commercial
production
2014 production of 223 Koz from 4 mines
(Seruyung, Bakan, North Lanut & Penjom)
New experienced Geologist and Metallurgist
team was on boarded
2013
Exploration expands the resource inventory by another 1Moz to 7Moz
Exploration delivers a 50% increase in resource to reserve conversion from
2Moz to 3Moz
Reaches total of 878koz of gold produced since its inception in mid-2011
2014
2016
2015
2012
2011
Jun 2011 – CONSOLIDATION YEAR
Contract mining company
Acquired the gold portfolio of Avocet Mining midyear in Indonesia & Malaysia
Inherited two producing assets with a combined
annual production of 100 Koz. *note from the
Seller: North Lanut only last 1 year
Obtained syndication loan of US$275m for
Bakan & Seruyung mines
Fast-tracked development of Bakan &
Seruyung assets into production stage in
one year
J Resources becomes a signatory to the
International Cyanide Management
Institute (ICMI) Code
Indonesian licenses were close to expiry
Reserves = 493 Koz Au
Jun 2011 Resources = 3,200 Koz Au
Source: Public Company Data,
5
2013 – DEVELOPMENT YEAR
5 years
2015 – SUSTAINABILITY YEAR
Seruyung & Bakan achieve signatory status to
the ICMI Code in January 2015
Received ISO:14001 for all 4 producing mines
in May 2015
Annual gold output 245Koz
Obtained syndication loan of US$208.5m on
Feb’16 to develop existing 4 mines and
additional 4 mines (Pani, Bolangitang,
Bulagidun and Doup)
2016
Reserves = 3,127 Koz Au
Resources = 7,020 Koz Au
Diversified Mine Portfolio
The Company has a geographically diverse portfolio of assets across Malaysia and Indonesia
BAKAN (80% Owned1)
• Producing since Dec-2013
• Contract expiration: 2034
• Reserve: 621koz
• Resource: 1,409koz
• Processing: Dynamic Heap Leach
• Ex-Newmont asset
SERUYUNG (99.8% Owned1)
• Producing since 2014
• Contract expiration: 2033
• Reserve: 330koz
• Resource: 504koz
• Processing: Dynamic Heap Leach
• Ex-Indochina (Ivanhoe) asset
BULAGIDUN (99.9% owned1)
• Exploration stage
• Copper & gold
• Ex-BHP asset
BOLANGITANG (99.9% owned1)
• Exploration stage
• Gold & silver
• Ex-BHP asset
Malaysia
Manado Office
KL Office
Indonesia
PENJOM (100% Owned1)
• Producing since 1996
• Contract expiration: 2025
• Reserve: 578koz
• Resource: 1,463koz
• Processing: Resin-in-Leach
NORTH LANUT (80% Owned1)
• Producing since 2004
• Contract expiration: 2034
• Reserve: 157koz
• Resource: 452koz
• Processing: Dynamic Heap Leach
• Ex-Newmont asset
Source: Public Company Data,
Notes: 1. % owned by PT J Resources Nusantara.
6
Jakarta Office
Legend:
Producing assets
Development assets
Exploration assets
Properties
Offices
PANI (99.9% owned1)
• Development stage
• Reserve: 207koz
• Resource: 971koz
• Ex-BHP asset
DOUP (99.5% owned1)
• Development stage
• Reserve: 1,234koz
• Resource: 2,222koz
• Ex-Placer-Dome and
BHP asset
A Leader In Cost Efficiency and Exploration
Processing Rate
Mining Rate
(US$/Ton)
(US$/Ton)
3.1
14.0
1.5
3.9
Jun-11
Dec-16
Dec-16
Discovery to Resource Cost
All-In Sustaining cost2
Cash Cost1
(US$/oz)
Jun-11
(US$/oz)
(US$/oz)
1,133
1,202
594
27.1
683
11.7
Jun-11
Dec-16
Jun-11
Dec-16
Jun-11
Source: Public Company Data,
Notes: 1. Cash Cost includes mining, processing, SGA and royalty costs. 2. All-In Sustaining Cost, including cash cost, sustaining CAPEX, exploration cost and employee benefit (World Gold Council).
7
Dec-16
Solid Operating Performance
Gold Production
Revenue
(Koz)
(US$mm)
223
245
280
287
235
192
67
2013A
78
2014A
2015A
2016A
2013A
2014A
2015A
2016A
Total Debt1/EBITDA
EBITDA and Margin
(x)
(US$mm, %)
23.1x
22.5%
44.5%
48.7%
51.6%
50.0%
125
140
3.2x
0.0%
121
2.4x
-50.0%
2.6x
-100.0%
18
-150.0%
-200.0%
2013A
2014A
EBITDA
2015A
2016A
2013A
EBITDA Margin
Source: Public Company Data.
Notes: 1. Debt includes loans from related parties, loans from third party, loans from non-bank financial institutions, finance lease and bank loans.
8
2014A
2015A
2016A
Low Cost Structure (Cont’d)
Mining Rate Trend
(US$ / Ton)
6.3
4.5
3.1
2.5
2.5
2.0
2H-2011
1H-2012
4.0
3.0
2.0
1.7
2.3
1.3
2H-2012
1H-2013
21.2
21.4
4.2
2.3
2.9
2.0
Total
3.3
2.4
2.3
2.3
2.0
2.1
2.1
1.9
Indonesia
1.1
Malaysia
1.2
1.6
1.5
1.5
1.4
1.4
1.1
1.3
2H-2013
1H-2014
2H-2014
1H-2015
2H-2015
1H-2016
2H-2016
15.0
15.1
8.6
9.6
Processing Rate Trend
(US$ / Ton)
20.3
20.1
16.9
14.0
11.3
10.0
2H-2011
7.4
1H-2012
Source: Company Data.
9
12.3
10.0
9.1
9.0
8.6
5.7
2H-2012
17.3
1H-2013
6.6
2H-2013
6.0
5.8
5.0
4.8
3.8
4.1
4.7
1H-2014
4.4
2H-2014
3.5
1H-2015
3.4
2H-2015
2.7
1H-2016
3.0
2H-2016
Total
Indonesia
Malaysia
Sustainable Low Cost Leadership
Cash Cost1, AISC2 and Cash Cost Margin
(US$/oz)
73.4%
55.5%
51.3%
48.4%
1,182
1,054
785
697
665
600
2013A
2014A
Cash cost
2015A
AISC
683
594
2016A
Cash Cost Margin
Notes: 1.Cash Cost includes mining, processing, SGA and royalty costs. 2. All-In Sustaining Cost, including cash cost, sustaining CAPEX, exploration cost, employee benefit and deferred mining cost (World
Gold Council).
10
Proven Reserve and Resource Growth Track Record
Post mine Avocet acquisition, the rate of Reserves replenishment has been over 3x times higher than the rate of its annual
production, resulting an significant Reserves increase of +39.8% CAGR from Jun-11 to 2016
Continuous Production Growth…
(koz)
3,127
3,500
3,000
2,500
2,000
1,500
1,000
493
(50)
(101)
(67)
(223)
2012A
2013A
2014A
500
(245)
(192)
2015A
2016A
0
(500)
Jun-11
Dec-11
Production
2016A
Reserves
Exceeded by Reserve Growth…
(koz)
3,127
1,815
493
Jun-11
Source: Company.
11
893
929
Dec-11
2012A
1,968
1,204
2013A
2014A
2015A
2016A
Proven Reserve and Resource Growth Track Record (Cont’d)
Resources replenishment have been consistently done in a prudent and cost effective manner and critical foundation for the
Company’s long-term Reserves growth
Resources Continue to Grow…
(koz)
7,020
3,200
3,087
Jun-11
Dec-11
3,940
4,132
2012A
2013A
5,915
5,148
2014A
2015A
2016A
… while Improving Resource Discovery Cost
(koz, US$/oz)
53.9
1,339
1,238
1,012
953
27.1
18.3
257
2012A
2013A
Additional Resource (koz)
Source: Company.
12
2014A
10.1
11.7
2015A
2016A
Resource Discovery Cost (US$ / oz)
Large Asset Base for Continued Reserve Growth
Potential upside of resource-to-reserve ratio given large asset base for continued reserve growth
Gold Reserves
(koz)
Reserve-to
Resource
Ratio (%)
15%
10,000
29%
24%
29%
35%
33%
45%
7,020
8,000
5,144
6,000
4,000
3,200
4,129
3,940
3,088
493
3,127
1,968
1,814
1,204
929
893
2,000
5,915
0
49
96
67
101
223
192
245
(2,000)
Jun-11
Dec-11
2012A
2013A
2014A
Ore Reserves
Mineral Resources
2015A
2016A
Production
Reserve-to-Resource ratio (2016)
(%)
76.6%
Median: 45%
27.3%
25.5%
IAMGOLD
Alamos Gold
38.2%
13
38.9%
SEMAFO
Goldcorp
41.5%
44.5%
45.7%
46.3%
48.8%
57.4%
58.1%
63.8%
31.5%
Yamana Gold
Agnico-Eagle
Mines
Source: Company.
38.4%
55.4%
Tahoe
Resources
J Resources
Kinross Gold
Barrick Gold
Eldorado Gold
Centerra Gold
Alacer Gold
Newmont Mining
New Gold
Detour Gold
Experienced Management with Proven Track Record
16 years of industry experience
41 years of industry experience
President Director - PT Bukit Makmur Istindo Nikeltama (2010-2013)
Director - PT Bukit Makmur Mandiri Utama (2001-2009)
Co-founder - J&Partners (2010-present)
President Director - PT Bukit Makmur Mandiri Utama (2009–2012)
Director - PT Bukit Makmur Widya (2009-2012)
Business Operation Director - PT Pamapersada Nusantara (1992 -2001)
Vice President Director - PT Bukit Makmur Mandiri Utama
(2004-2007)
Jimmy Budiarto
President Director
Early career with PT United Tractors Tbk.
Budikwanto Kuesar
Director
Over 35 years of business experience
30 years of industry experience
President Director - PT Berau Coal (2005-2006)
Deputy Regional Head - PT Bank Universal Tbk. (1996-2003)
Chief Financial Officer - PT Bukit Makmur Mandiri Utama (2000-2009)
Credit Review Division - PT Bank Perniagaan Indonesia (1987-1989)
Commissioner - PT Berau Coal (2006-2009)
Financial Director - PT Bukit Makmur Istindo (2004–2011)
Deputy President Director - PT Berau Coal (2004-2005)
Christian Wijayanto A. J.
President Commissioner
Private Banking Division - PT Bank Bali Tbk. (1986-1996)
William Surnata
Director
Over 27 years of business experience
19 years of industry experience
General Manager Operations at Intrepid Mines (2010-2011)
Manager – Employee & Industrial - INCO (2005-2006)
Director - External Relations - INCO (2006-2011)
VP, Business Development at Buena Group (2012-2013)
Manager - Human Resources & Business Systems - INCO (2004-2005)
Exploration Manager SE Asia - Newmont Asia Pacific (1999-2010)
Early career with PT International Nickel (INCO)
Project Manager BHP Minerals (BHP Billiton, 1990-1999)
Adi Maryono
Vice President Exploration
Over 32 years of business experience
34 years of industry experience
Environmental Advisor - PT Meares Soputan Mining (2006-present)
President Director - Laing O’Rourke Indonesia (2009-2010)
Environmental Advisor - PT Prasadha Pamunah Limbah (2008-present)
Environmental Legal Specialist - PT Freeport Indonesia (2005-present)
Chairman – Indonesian Environmental Law Dev. Assoc. (1984-present)
Prof. M. Daud Silalahi, SH
Independent Commissioner
Source: Public Company Data.
14
Edi Permadi
Director
Chief Executive - Arsari Resources Group (2011)
GM, Strategic Planning - Leighton Contractors Indonesia (2005-2008)
Early career with Anglo American, BP Minerals, Pelsart & Austindo Group
Colin J. Davies
Independent Director