Company Presentation 9M 2013
PT Toba Bara Sejahtra Tbk ( Toba )
Company Presentation
YTD 9M 2013
1
Disclaimer
These materials have been prepared by PT Toba Bara Sejahtra (the “Company”).
These materials may 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.
2
Content
1
Corporate Profile & Updates
2
Investment Highlights & Growth Strategies
3
Business Overview & Updates
4
Financial Highlights
5
CSR & Environmental Highlights
3
1
Corporate Profile & Updates
4
Toba in Brief
Toba specializes in thermal coal production and comprises three operating subsidiaries: Adimitra
Baratama Nusantara (ABN), Indomining (IM) and Trisensa Mineral Utama (TMU), which hold adjacent
concession areas located in East Kalimantan, Indonesia
• Substantial and diversified thermal coal
reserves and resources
o JORC-compliant proved and probable reserves of
147 MM tons and measured, indicated and
inferred resources of 236 MM tons
o Coal brands with calorific values ranging from
4,700 - 5,800 Kcal / kg GAR
• Strong growth profile
o Produced 5.2 MM tons of coal in 2011 and grew to
produce around 5.6 MM tons of coal in 2012
o Prime location provides the operational cost edge to
grow as a logistical & operational center for the area
o Continued exploration effort to increase our Reserves and
Resources. Current reserves only account for 52% of our
total area has been explored
Revenue (1)
EBITDA(1)
Reserves
Resources
%
%
%
%
TMU
6%
TMU
6%
IM
22%
IM
17%
Total: US$ 45 MM
Note: (1) Last Twelve Month analysis ~ Revenue and EBITDA
TMU
18%
IM
15%
ABN
77%
ABN
74%
Total: US$ 443 MM
TMU
5%
ABN
80%
Total: 147 MM Tonnes
IM
16%
ABN
66%
Total: 236 MM Tonnes
5
Coal Specifications
Calorific Value
GAR
4,200
6,700
4,100
4,200
4,900
6,700
4,500
5,100
5,000
6,500
4,900
4,200
7,200
6,000
5,300
5,900
5,200
TOBA
4,700
5,800
Ash
Sulphur
1,5%
0,1%
2,0%
2,5%
5,0%
5,5%
5,5%
7,0%
Source: Broker Reports
0,1%
13,0%
4,5%
2,0%
1,9%
2,0%
0,6%
8,0%
4,0%
0,2%
0,1% 0,1%
0,2%
3,3%
4,0%
1,4%
0,2%
12,0%
2,5%
TOBA
Toba’s coal quality
is in mid-upper
range
5,100
11,5%
0,2%
10,9%
0,7%
0,5%
1,5%
0,7%
9,0%
TOBA
0,2%
1,0%
1,0%
0,5%
1,0%
6
Ownership Structure
PT Toba Sejahtra ( TS )
Davit Togar Pandjaitan (1)
71.8%
0.8%
PT Bara Makmur Abadi
PT Sinergi Sukses Utama
6.2%
Roby Budi Prakoso
Public
3.6%
5.1%
12.5%
ABN Minorities
49.0%
99.99% (2)
PT Toba Bumi Energi ( TBE )
51.00%
License
Area
• 20-year Production
Operation Mining Permit
( IUPOP ) expiring in
December 2029
• IUPOP was converted from
Kuasa Pertambangan
( KP ) in 2009
• 2,990 ha
Reserve • Reserves: 117MT- JORC
• Resources: 156MT- JORC
Notes:
1. Son of TS founder, Luhut B. Pandjaitan
2. Figures are rounded off
99.99% (2)
• IUPOP expires in June 2013
• IUPOP was converted from KP in
2010
• IUPOP extension was completed
in March 2013 (First out of 2
extensions: in 2023, with tenor of
10 years each)
99.99% (2)
• 13-year IUPOP expires in December
2023
• IUPOP was converted from a KP in
2010
• 683 ha
• 3,414 ha
• Reserve: 22 MT- JORC
• Resources: 37MT- JORC
• Reserves : 8 MT - JORC and
additional 7 MT of internal estimate
• Resources: 43 MT- JORC
90.00%
• Plantation permit expires in 2036
• 8,633 ha (Right to Use Land)
• Planted Area: 2,896 ha
7
Majority Shareholder
Toba believes it benefits from Toba Sejahtra’s experience in the Indonesian coal sector as well as its
leadership and experience
Controlling Shareholder with Established Track Record…
… Helmed by an Experienced Leader
• A privately owned group founded in 2004 with interests in energy
and plantations
• General (Ret.) Luhut B. Pandjaitan is the key shareholder and
founder of Toba Sejahtra group. He is currently the chairman of TS
• Its business segments are as follow:
• Mr. Luhut had a long and illustrious career in the civic service
before turning to the commercial sector. Over the course of thirty
years in the Army Special Forces, Mr. Luhut rose to become a fourstar general
– Energy: Owns 5 coal mining concessions through Toba and PT
Kutai Energi. All of TS' mines are characterized by low production
costs and favorable proximity to ports
– Oil & Gas: In the exploration phase of the 4,567 sq miles South
East Madura Block through subsidiary E&P company PT Energi
Mineral Langgeng
– Power Plant: Operates a 30 MW coal-fired power plant in Palu,
Central Sulawesi and is developing a 120 MW greenfield power
plant in Senipah, East Kalimantan
– Agribusiness: A 25% stake in a 12,000 ha palm oil plantation in
East Kalimantan
– In 1999, Mr. Luhut retired from the military service to serve as
Ambassador for the Republic of Indonesia to Singapore
– In 2000, he was appointed Minister of Industry and Trade of the
Republic of Indonesia
• Thereafter, Mr. Luhut applied his knowledge and leadership skills to
establish TS in 2004, building it from the ground up into a major
business group with interests in energy oil and gas, power and
agribusiness
8
Initial Public Offering
Listed on IDX
Number of Shares Offered
IPO Proceed
Anchor Investor
Ticker Code
06 July 2012
210,681,000 shares or 10.47%
IDR 400,293,900,000
Baring Private Equity Asia (8% at IPO)
TOBA
9
Historical Share Price
Ticker Code: Toba
In full amount IDR
2500,0
IPO (6th Jul 2012)
IDR 1900
1st Nov 2013
IDR 700
2000,0
1500,0
1000,0
500,0
-
2012
2013
Sources: Bloomberg
•
•
Decline in TOBA’s share price reflects lack of liquidity and lack of stock coverage
Going forward, Toba continues to consider various options to increase liquidity and
coverage
10
Key Milestones
Strong track record of acquisitions, development of greenfield mines, rapid production ramp-up and
experience to adjust operation in a down-market
2007
2009
2011
2013
• IM commenced
production
• ABN & IM production
reached 2m tons
• TMU commenced
production
• IM successfully
extended IUPOP
until 2023
• Toba production
hit 5m tons
2007
2008
2009
2010
2011
2012
2013
2008
2010
2012
• ABN commenced
production
• TS acquired the remaining share
for IM from minority shareholder
• Toba acquired the minorities’
shares in TBE and TMU
• Operational
adjustment due to
drop in coal
market
• Toba acquired 51.0% of ABN,
52.5% of TBE (IM’s shareholding
company) and 51.0% of TMU
• IPO/Listed on IDX, 6th July
2012
• Toba production hit 4m tons
• Eliminated overlapping issues
with plantation company (PKU)
11
Investment Highlights and Growth Strategies
12
Solid Operating Track Record (i)
Toba is transitioning from Greenfield into growing major player
Production Growth
MT = Million Tons
6
~5,8~ –6,5
6,4
ABN
IM
TMU
5,6
5,3
0.0
5
0.3
0.3
1.0
3,9
4
1.4
0.9
3
2,0
2
3.8
0.9
1
0
4.4
Forecast
7
3.1
0,8
0,2
0.7
0.1
1.1
2007
2008
2009
Source: Company data
TMU
2010
Indomining
2011
2012
2013
ABN
• Toba started exploration at ABN & IM in 2006 and at TMU in 2008
• Production grew at 65% CAGR from initial size of 800k in 2008 to 5.6 MT in 2012
• Toba focuses on Continuous Production Growth and this is supported by available infrastructure
capacity of 13 MT of coal
• Additional 3 MT of capacity is expected to be realized in 3-4Q13 to become total of 16 MT
13
• Production growth will be driven by TMU and Additional CAPEX will help it fuel growth
Solid Operating Track Record (ii)
Production Growth Comparison 2009 - 2012
CAGR %
Toba’s production growth is among the highest in the industry over the
last 4 years
14
Prime Location Gives Significant Advantage in Cost (i)
Prime Location
0
12
24
36
Major City
Jetty
Transhipment Point
TMU - IM Hauling Road
48
kilometers
4
Major city is
less than 50
km
Muara
Berau
3
Furthest pit to
jetty 25km | with
closest one ~5km
Samarinda
~55 km
(total ~120 km)
Mahakam River
2
IM
ABN
ABN
TMU
~ 5 km
IM Jetty
Close proximity
transhipment
point & jetty
Makassar Strait
ABN Jetty
Kutai Energy 17km
Jetty
1
Adjacent
locations for all
3 mines
~65 km
Muara Jawa
Balikpapan
Toba owns all infrastructures (coal processing plants, overland conveyors, and jetties),
giving significant operating leverage vs other concessions in surrounding areas
15
Prime Location Gives Significant Advantage in Cost (ii)
Coal Chain Distance (a)
In km
90
(b)
Notes :
(a) Weighted average distance based on respective production usage of each transportation facility (from pit to vessel)
(b) Represent ABN & IM only
Source : Broker Reports
Toba’s transportation costs are low due to its close proximity to the
Transhipment Point
16
Global Cash Cost Environment & Indonesia’s Position
Cash Cost Curve in 2009
Global Cash Cost in 2012
US$/ton
Lowest
Median
Weighted average
80
70
71
67
60
47
50
40
30
45
39
29
20
10
0
2009
Cash Cost Curve in 2012
2012
Prod. Cash Cost by Country (Thermal Coal)
Average cash cost prices have moved up by close to 50%...
Cost Reduction Initiatives
SR (x)
Cost Reduction
ABN
TMU
2013F
15.3x
12 – 14x
Potential Cost Saving
Up to US$8 /ton
Dump
Distance
(m)
SR
IM
2012A
2,174
1500 - 1800
13.0x
9 – 11x
Up to US$8/ton
Dump
Distance
(m)
2,365
1800- 2100
SR
14.9x
9 – 10x
Instrastruc
ture
(US$/ton)
US$15 - 20 /ton
US$13/ton US$4 – 6 /ton
18
Substantial Reserves and Resources
Support Production Expansion
Reserves and resources upside from conversion of resources to reserves and further exploration of
concession areas
Reserves (1)
Resources (1)
MM Tons
MM Tons
Coal Reserves and Resources (1) (2) (JORC)
TMU
5.4%
Coal Reserves
Proved
Probable
Total
Reserves
Measured
Indicated
Inferred
Total
Resources
ABN
70
47
117
73
70
13
156
IM
11
10
22
24
10
4
37
TMU
5
4
8
9
8
26
43
Total
86
61
147
106
88
43
236
(MM Tons)
IM
15.0%
TMU
18.2%
IM
15.7%
ABN
66.1%
ABN
79.6%
Total: 147 MM Tons
Total: 236 MM Tons
Coal Resources
Notes:
1. Differences in totals are due to rounding off
2. The Runge Report for ABN was as of 31 December 2011, the PT SMG Consulting Report for IM was as of 1 January 2012 and the Marston Report for TMU
was as of 31 October 2011
19
Substantial Reserves and Resources due to Vast
Unexplored Areas & Relatively Long Reserve Life
Toba’s Concessions
Reserve life ~ Industry Comparison
IM
ABN
TMU
TMU
Note:
Areas already explored
• Explored 3,704 of 7,087 hectares of concession areas
(52% of total concession area) and drilled 3,512
boreholes as of 31 December 2011
• Additional JORC coal reserves and resources
expected to be discovered, especially at TMU where
only 680 hectares out of 3,414 hectares of
concession (20% of TMU concession area) have
only been explored
Source : Broker report
Toba’s reserve life of over 20 years compares
favorably with other listed peers
20
Coal Market Update
Coal Price Trend
Changes in Forward Curve Newc Global Coal Index
100
Range-bound US$77-95/ton
350
300
90
105,9
110,2
95,4
96,7
100,6
83,2
86,6
90,3
93,6
81,7
78,4
81,5
84,5
88,4
91,6
Q3'13
Q4'13
Cal-14
Cal-15
Cal-16
250
200
150
80
100
50
70
0
2012
Source: Newcastle Index
•
•
2013
17-Sep-13
19-Jun-13
2-Jan-13
Source: Global Coal
Coal Prices have bounced back from high 70’s in 2Q 2013 and now on decline trend within
US$ 77-83/ton
Going forward, prices are expected to trade within range-bound of US77-95/ton
21
Strong Relationships with Multinational Customers
Major customers provide the stable
business support for Toba’s marketing…
… minimum marketing fees because Toba
handles our own marketing internally
Major Customers
Toba’s Marketing Operations
Central Marketing Operations of all 3
subsidiaries
Internally developed customer base
that allows Toba to have low marketing
costs
Balance mix of long term contracts,
short term and spot
DRAGON ENERGY GROUP
Active participation in reputable
conference and trade shows to promote
Toba brand
Enhance marketing strategy to sell
directly to end-users
22
Sales by Destination
Our coal is distributed to
major countries in Asia:
-
China
-
Taiwan
-
South Korea
-
India
23
3
Business Overview
24
Strategic Initiatives to Manage Changing Environment
Returning future
Profitability
Level
Strategic Initiatives / Response to Changing Coal Prices
1
Manage cash costs: Lower SR,
Shorten Dump Distance
2
3
Construct hauling road from
TMU to IM
Share current infrastructures :
CPP & Jetty & lower costs
4
Centralize fuel supply
5
6
Optimize sales through hedging
activities
Increase our reserves through
acquisition and exploration
25
Execution and Achievement so far… (I)
OPERATION
Initiative
Execution
Achievement
Manage Cash Cost: lower SR &
dump distance
Mine-plan was adjusted in 3Q12.
Dump distance was lowered despite
pre-stripping in 1Q13 at ABN
Cash cost is on track to be
lowered ~US$8/t by FY13
Construct Hauling Road from
TMU to IM
Construction commenced end-2012
and was scheduled for completion in
2Q13
Hauling road was completed in
May 2013, ahead of schedule
Share Existing Infrastructure
TMU commenced using ABN’s road
and IM’s CPP & Jetty
Production ramp-up at TMU has
been underway since completion
of hauling road. Future
incremental capital cost should be
limited
Conduct Joint Mine Plan
ABN & IM commenced Joint
Border mining end-2012
Maximizing extraction of ~2 MT
of high quality coal reserve at
low SR
Finalize Capex
Completing Coal Processing Plant
(CPP) at IM to increase production
volume to 6 MT from current capacity
of 3 MT
New CPP has been completed
in end-Sept 13 and is expected
to be officially used by mid- Oct
2013
In
Progress
In
Progress
26
Execution and Achievement so far… (II)
FINANCIAL
Initiative
Provide Financing to IM
Optimize Sales through Hedging
Centralize fuel supply
Execution
Maximized current ideal capital structure
by using loan to finance new CPP
construction and land compensation
Made available at Toba’s disposal
hedging line of coal with notable
financial institutions
Sourced constant bulk supply from
major fuel supplier to allow for good
monitoring of effective fuel usage
Achievement
Secured 3-year US$ 15 mn term
loan from SCB at competitive
lending rate of LIBOR + applicable
rate
No hedging facilities has been
utilized. Sold ~72% of 2013 sales
volume using fixed pricing, and
securing cash prepayments
Sourced supply at competitive
price, while continuing to seek
other sources with better pricing
In
Progress
Execution and Achievement so far… (III)
COMMERCIAL
Initiative
Secure sales volume in 2013
Execution
TOBA has successfully sold and
secured ~ 80-90% of targeted sales
volume for 2013
Achievement
• ABN secured ~ 90% of 2013
targeted sales
• IM secured ~90% of total 2013
targeted sales
• TMU secured 50% prepayment
from one of buyers
Enhance marketing expertise
Internal marketing team currently
handles sales activities
TOBA eliminated dependency on
third party marketing agent
Cost Saving Intiatitives (1)
TOBA negotiated directly with
logistics providers
Lower logistics cost (barging
costs) by 18% from 1Q13 to 2Q13
Cost Saving Intitiatives (2)
TOBA negotiated directly with
Contractors
• ABN & IM are currently in
negotiation with contractors to
discuss further cost reduction
initiatives
In
Progress
28
…Next: Objectives in 4Q 2013 & 2014
OPERATION
Initiative
Status
Execution
Finalizing underpass of ABN by 4Q13
to shorten dump distance range and
to increase efficiency
Finalize Capex
• Expected to be completed by the
end of 4Q13
COMMERCIAL
Execution
Initiative
Increase cooperation and internal
integration with suppliers
Working together with contractors on
fleet management and supply parts
management with the end providers
Status
Expected to be completed in 2H 2013
CORPORATE SOCIAL RESPONSIBILITY / ENVIRONMENT
Initiative
Develop and implement Corporate
Social Responsibility
Execution
Goal to receive “Proper” mining awards
for all three mines
Status
To be achieved in 1Q14
Toba’s Milestone 2013
• Hauling Road TMU – IM
completed ahead of
schedule
• IM entered into
new Mining
Contract with
RPP for 5 years
Jan’13
• TMU Production ready
for ramp up to 80 - 100 K
tons/month
Apr’13
2007
• 2nd underpass in
ABN expected to
be completed
May’13
2008
• TMU set up mine
operations in new
pit (block 4)
• Border-mining at
ABN & IM
commenced
Sept’13
………..
2009
2010
Oct’13
2011
2012
• New CPP at IM
expected to be
completed
• IM’s capacity
expected to increase
up to 6 MMTPA
Toba is on track in integrating its operation and infrastructure capabilities
30
Toba’s Business Strategies
1
2
3
4
5
Integration of three
(3) mines
Organically increase
coal production levels
Increase coal reserve
and resource
Strengthen existing
and develop new
customer
relationships
Continue to focus on
health and safety,
environmental track
record and
commitment to CSR
• Benchmarking and
sharing between
departments and
functions
• Expand coal production
through increased
production and mine
development activities
• Optimize and
coordinate mine
planning and logistics
• Strengthen
relationships with third
party mining
contractors and work
closely with them to
improve their
productivity
• Continue exploration
activities to increase
proven and probable
reserves as only 52%
has been explored to
JORC standard
• Supply a higher
proportion of sales
volume to end users,
while maintaining
relationships with
existing coal traders
• Consider opportunities
to acquire coal
concessions with
significant reserves
• Target customers in
Japan, Taiwan, South
Korea, China, Vietnam
and Hong Kong, South
East Asia and India
• Centrally coordinate
and streamline
corporate finance,
legal, human resource
and CSR functions
• Maintain and enhance
high international
operating standards,
utilize automated
mining methods to
minimize accidents and
enhance safety
• Foster community ties
through development
programs as well as job
creation
• Joint mine plan and
infrastructure sharing
Growing Reserves and Maintain Profitability at Different Cycles
31
Toba’s Operational Performance in 3Q 2013
Quarterly Production & Stripping Ratio (SR)
Thousand Tons
Production volume
Stripping Ratio (SR)
20x
2.000
17,6x
16,6x
1.500
15,1x
14.2x
13,6x
15x
12.7x
12.1x
10x
1.000
1.097
1.373
1.574
1.587
1.287
1.501
1.802
1Q 2012
2Q 2012
3Q 2012
4Q 2012
1Q2013
2Q2013
3Q'13
5x
500
• Production volume of 4.6
MMT YTD September (9M
2013) was 75.4% of our FY
2013 production target
• To achieve FY target of
5.8-6.4MMT,
TMU
is
expected
to
be
instrumental in boosting
overall
growth
via
continued ramp-up
Production Summary
MMT: Million Metric Ton
Sales
(MMT)
2Q13
3Q13
1.4
1.6
Change
Comment
17.8%
Sales volume in 3Q13 was higher than in 2Q13 mainly
due to significant production ramp-up in TMU
Q-o-Q production in 3Q13 increased by 20.0% to 1.8
MMT, which was the highest volume booked by Toba
throughout its corporate history
Production
(MMT)
1.5
1.8
20.0%
SR (x)
13.6
12.7
-6.6%
SR continued to fall, stemming from lower mining cost
ABN Operational Performance
Production & Stripping Ratio
Thousand Tons
IM
Production volume (mt)
1.500
Stripping ratio
20x
17,6x
17,1x
16,6x
14,7x
ABN
1.000
12.7x
14,2x
15x
12,6x
10x
TMU
500
Dump
distance
884
1.078
1.224
1.225
1Q12
2Q12
3Q12
4Q12
2,492
925
995
1.188
1Q13
2Q13
3Q13
1,719
1,864
1,843
5x
2,461
1,978
1,723
Key Highlights
PT Kutai Energi
ABN managed to increase production by 19% from 2Q13 to 3Q13
ABN’s 2nd underpass is currently under construction and expected
to be completed by 4Q13 with aim to lower OB dump distance
At 12.7x SR, for every 100 meter-decrease in dump distance is
expected to reduce cost by~US$0.65/ton, contributing to ~US$
3.9/ton in FOB cash cost saving since 3Q12
Operational Advantage & Focus
2
1
Short coal hauling
distance 4km
3
High Built Crusher
Cap 10 mm ton/year
Barge Loading Jetty
Loading Speed of up to
1,800 ton/hour
4
Under-pass:
Capitalizing on Infra
Strength
33
IM Operational Performance
Production & Stripping Ratio
Thousand Tons
Production volume (mt)
500
14,6x
ABN
Stripping ratio
12,7x
14,5x
13,1x
250
9,7x
14,9x
20x
15x
11,2x
10x
TMU
5x
190
236
1Q12
1,693
0
Dump
distance
PT Kutai Energi
265
272
278
360
339
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
2,740
2,136
2,284
1,698
1,662
0x
1,728
Key Highlights
IM’s production in 3Q13 decreased by 5.8% q-o-q due mainly to
higher-than-expected rainfall
On y-o-y basis, dump distance fell by ~400m, falling by 19%
At 13-14x SR, for every 100 meter-decrease in dump distance is
expected to reduce cost by~US$0.82/ton, translating to y-o-y
FOB cost saving of ~US$ 3.3/ton
Operational Advantage & Focus
2
1
Short coal
hauling dist. < 5km
4
3
CPP Ramp up to
6MM TPY
Conveyor for TMU
& Others
Cross Border
Mining with ABN
34
TMU Operational Performance
Production & Stripping Ratio
Thousand Tons
IM
Production volume
300
250
ABN
Stripping Ratio
45,6x
275
200
35x
150
100
50
0
14,4x
23
39
1Q12
PT Kutai Energi
45x
2Q12
17,0x
10,8x
11,2x
25x
12,7x
10.3x
59
85
90
84
3Q12
4Q12
1Q13
2Q13
15x
5x
3Q13
Key Highlights
Note:
---
Hauling road
TMU Coal Production (ktons)
120
109
100
80
Operational Advantage & Focus
1
2
3
72
80
60
40
86
TMU’s production in 3Q13 increased by 88% q-o-q, mainly due to strong
contribution from recently-opened Block 4
TMU’s hauling road to IM was completed ahead of schedule in end-May
2013. To date, IM has been using IM’s CPP and jetty facilities for coal
shipment
In September 2013, production reached 109,000 tons/month, rising 291%
from 32,000 tons/month in January 2013. This level of productivity is
expected to be maintained for the rest of year
50
32
34
22
25
20
0
Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13
16-17km Hauling Road
to ABN is completed
Mine operations
commenced
at Block 4
Integrate CPP
Ops with IM
35
4
Financial Highlights
36
Financial Performance YTD 9M 2013
TOBA
1Q 2013
Operation
Sales Volume
Coal production
Stripping Ratio
NEWC Index
Per Ton Basis
ASP
FOB Vessel Cash Cost
Adj. FOB Vessel Cash Cost
EBITDA
Financial
Sales
Gross Profit
Operating Profit
EBITDA
Net Income before Minority
Interest
Ratio
Gross Profit Margin
EBITDA Margin
Operating Profit Margin
Notes
2Q 2013
3Q 2013
YTD 2013
Change %
(2Q-3Q 2013)
mton
mton
x
US$/ton
1.4
1.3
15.1
93.0
1.4
1.5
13.6
85.9
1.6
1.8
12.7
78.0
4.4
4.6
13.7
85.7
18%
20%
-7%
-9%
US$/ton
US$/ton
US$/ton
US$/ton
66.4
55.4
59.3
6.6
68.1
54.9
56.0
9.1
67.8
53.4
51.1
11.3
67.4
54.4
55.3
9.1
0%
-3%
-9%
24%
US$'M
US$'M
US$'M
US$'M
94.9
14.4
7.7
9.4
93.1
16.7
10.1
12.5
109.3
21.7
11.5
18.2
297.4
52.8
29.3
40.1
17%
30%
14%
46%
6.0
6.6
7.0
19.6
6%
US$'M
%
%
%
1
2
3
15.2%
10.0%
8.2%
17.9%
13.4%
10.8%
19.9%
16.6%
10.5%
17.7%
13.5%
9.9%
(a) FOB vessel cash costs: COGS, Selling Expenses, Royalty,excluding depreciation fixed assets and amortization of exploration
and development
(b) Adj. FOB vessel cash costs: COGS, Selling Expenses, Royalty excluding depreciation fixed asset and amortization of
exploration and development asset & without accounting for component of deferred striping cost
11%
24%
-3%
•
In 3Q13, SR was
lowered by 7%, while
production increased
by 20%...
•
…resulting in 9%
decline in adj FOB
Vessel cash cost
•
ASP slightly rose by 0.4
% despite 9% Q-o-Q
fall in NEWC Index…
•
… EBITDA and Net
Income increased by
46% and 6%
respectively
37
Financial Performance – YTD 2013 vs YTD 2012
YTD 2012
Operation
Sales Volume
Coal production
Stripping Ratio
NEWC Index
Per Ton Basis
ASP
FOB Vessel Cash Cost
(a) Adj. FOB Vessel Cash Cost
EBITDA
Financial
Sales
Gross Profit
Operating Profit
EBITDA
Net Income before Minority
Interest
Ratio
Gross Profit Margin
EBITDA Margin
Operating Profit Margin
YTD 2013 Change %
mton
mton
x
US$/ton
3.7
4.0
16.0
100.1
4.4
4.6
13.7
85.7
20%
13%
-14%
-14%
US$/ton
US$/ton
US$/ton
US$/ton
77.1
65.1
70.8
6.2
67.4
54.4
55.3
9.1
-13%
-16%
-22%
48%
US$'M
US$'M
US$'M
US$'M
283.4
40.8
23.6
22.6
297.4
52.8
29.3
40.1
5%
29%
24%
77%
US$'M
15.9
19.7
14.4%
8.0%
8.3%
17.7%
13.5%
9.9%
%
%
%
24%
23%
69%
18%
Coal production grew 13% (yoy)
driven by TMU production rampup
Toba’s 9M13 production achieved
75% of 2013 based on mid
production target of 5.8-6.4
million tons
FOB vessel cash cost slashed by
16% yoy mainly due to lower
mining costs (lowered SR and
shortened dump distance)
Hence, EBITDA increased by
78% attributable to lower Cash
Cost and Increased Production
by -16% and 13% respectively
38
Note (a)
FOB vessel cash costs: COGS, Royalty, Selling Expenses excluding depreciation and
amortization
Evolution of FOB Vessel Cash Cost
on Quarterly Basis
2Q 2012
SR
ABN
TMU
Notes
4Q 2012
1Q 2013
14,7x
12,6x
16,6x
2Q 2013
14,2x
3Q 2013
12,7x
FOB vessel
cash cost (a)
US$68/ton
US$61/ton
US$56/ton
US$56/ton
US$57/ton
US$57/ton
Adj. FOB vessel
cash cost (b)
US$73/ton
US$64/ton
US$51/ton
US$62/ton
US$56/ton
US$51/ton
13,1x
10,5x
11,3x
12,9x
14,7x
SR
IM
17,1x
3Q 2012
14,5x
FOB vessel
cash cost (a)
US$64/ton
US$49/ton
US$61/ton
US$57/ton
US$53/ton
US$50/ton
Adj. FOB vessel
cash cost (b)
US$71/ton
US$57/ton
US$57/ton
US$55/ton
US$57/ton
US$60/ton
SR
14,4x
10,9x
10,8x
11,2x
12,7x
10,4x
FOB vessel
cash cost (a)
US$69/ton
US$64/ton
US$66/ton
US$44/ton
US$42/ton
US$38/ton
Adj. FOB vessel
cash cost (b)
US$56/ton
US$41/ton
US$64/ton
US$49/ton
US$52/ton
US$42/ton
39
(a) FOB vessel cash costs: COGS, Selling Expenses, Royalty,excluding depreciation fixed assets and amortization of exploration and development
(b) Adj. FOB vessel cash costs: COGS, Selling Expenses, Royalty excluding depreciation fixed asset and amortization of exploration and development asset &
without accounting for component of deferred striping cost
Toba’s Cash Costs Comparisons
Cash Cost (a)
US$/ton
•
TOBA can operate on higher SR
relative to peers mainly due to
lower transportations costs from
location advantages
•
On this chart, FOB Vessel Cash
Cost calculation excludes
marketing fees, in which case
HRUM and ITMG paid
significant amounts
Source (a) Broker Report (September 2013)
Note: Cash Cost excludes royalty calculation
40
Balance Sheet
Balance Sheet
US$’000
Movement
(Sep13 - Dec'12)
Dec-12
Sep-13
Cash and cash equivalents
Fixed Assets
Others
Total Assets
36,307
34,053
191,166
261,526
45,470
42,391
201,976
289,837
25%
24%
6%
11%
Debt
Other Liabilities
Total Liabilities
48,790
101,792
150,582
30,721
136,985
167,706
-37%
35%
11%
Shareholders Equity
110,944
122,131
10%
Total Net debt/Equity
44%
25%
•
Total Assets as per June 2013
increased by 11% from December
2012
•
Cash and cash equivalent rose by
25% compared to December 2012
•
Shareholders Equity surged by 10%
from December 2012 to September
2013, reflecting positive growth return
NEWC Index Price (US$/tons)
120
110
114
97
100
90
90
Despite decreasing trend in coal index
price, total assets grew through stronger
equity base
93
87
86
80
78
70
60
41
1Q12
2Q12
3Q12
4Q12
1 Q13
2Q13
3Q13
Debt and Cash Position
Net Debt Position
US$ Mn
70
60
60
53
49
50
40
59
56
44
39
34 35
35
46
43
36
Cash
30
Debt
20
16
10
0
Net Debt to
Equity
1Q12
2Q12
3Q12
4Q12
2%
34%
6%
11%
1Q13
Net Cash
2Q13
3Q13
3%
11%
Cash balance rose from US$36.3 mn in December 2012 to US$45.5 mn in 9M13
42
Strong Cash Flow Generation
Cash Flow Statements
US$’000
Sep-12
Cash Generated from Operation
Income Tax Payment
Interest income/expenses
Cash flow from Operation
Cash flow from Investment
Cash flow from Financing
Movement in cash flow
Change in Cash due to forex
Beginning Cash
Ending Cash
Sep-13
18,393
(46,338)
(1,419)
(29,364)
33,682
(7,136)
(937)
25,610
(125,145)
135,203
(176)
(10,972)
(19,306)
58,573
39,267
14,461
(5,299)
36,307
45,470
•
During current volatile coal market, Toba
decided to predominantly enter into fixed
price contracts with buyers, while
securing sales on cash prepayment
basis
•
Positive cash position increased by 83%
from US$ 18 mn in 9M 2012 to US$
33mn in 9M 2013 mainly due to
prepayment and lower SR
Extraordinary transaction:
Significant CF from Investment
& Financing as a result of
minority restructuring
43
5
CSR & Environmental Highlights
44
Toba is Committed to Being a Responsible
Corporate Citizen
• Toba is continuously developing and implementing its corporate social responsibility programs
– Creating educational opportunities for local communities including renovating schools, training teachers,
providing post-graduate educational assistance and creating a literacy program for adults and a scholarship
program for school-aged children
– Providing health services to the local communities
– Helping groups of farmers plant crops of vegetables and bamboo and assisting with land rehabilitation
– Creating local employment opportunities by sourcing some of the Company’s site workforce from the
neighboring areas
Providing Health Services
Creating Educational Opportunities
Helping Farmers Plant Crops
45
Award and Recognition
ABN
East Kalimantan PROPER Green
Mining Award
2011
2007
Ernst and Young
Social
Entrepreneur of
the Year 2011
2012
2008
PT Toba Bara Sejahtra Tbk
Ranks as one of Indonesia’s Top
50 companies
2014
2013
2009
Indomining
East Kalimantan PROPER Blue
Mining Award
2010
!
2
0
Target
1
1
PROPER Mining Award for
ABN, IM, & TMU
46
Appendix
47
ABN: Coal Concession Overview
Overview
• Area: 2,990 ha
• Location: Sanga-Sanga, Kutai Kartanegara, East Kalimantan
IM
• Type of license: IUPOP
• Expiry date: 1 December 2029
• Commencement of production: September 2008
• 2012 production: 4.4 MM tonnes
ABN
• Mining consultant: PT Runge Indonesia
ABN
Jetty
Operations
TMU
• Current production capacity (31 December 2012):
– Crusher: 10 MM tonnes p.a.
– Conveyor: 10 MM tonnes p.a.
• Produces two varieties of blended thermal coal
– ABN 52: Marketed
CV(1)
Marketing
of 5,200 kcal / kg GAR
– ABN 55: Marketed CV of 5,500 kcal / kg GAR
– ABN 58 : Marketed CV of 5,800 kcal / kg GAR
• Substantially all of the owners of the land within ABN’s
concession area have been compensated and ABN has been
granted the exclusive right to mine those areas
• Historically sold between 50%-100% of its annual production through
long-term (longer than 1 year) with coal trading companies
– The remainder were sold on the spot market
•
Currently, IM sells coal to buyers based on fixed priced contracts up
to one year, backed with pre-determined cash prepayments
48
Note:
1. Calorific value
IM: Coal Concession Overview
Overview
IM
Jetty
• Area: 683 ha
• Location: Sanga-Sanga, Kutai Kartanegara, East Kalimantan
IM
• Type of license: IUPOP
• Expiry date: IUPOP effective until 2023 and can be renewed for
another 10 years
• Production commencement: August 2007
• 2012 production: 1 MM tonnes
ABN
• Mining consultant: PT SMG Consultants
TMU
Operations
• Current production capacity (31 December 2012):
– Crusher: 3.0 MM tonnes p.a.
– Conveyor: 4.5 MM tonnes p.a.
• Produced one variety of blended thermal coal “Indomining”
with marketed CV(1) of 5,700 kcal / kg GAR in 2012
– May produce additional varieties of blended thermal coal in
the future
• Has compensated the majority all of the owners of the land
within its concession area for their land and has been granted
the exclusive right to mine those areas
Marketing
• Historically sold approximately 50% of its annual production through
short-term (one year or shorter) contracts with coal trading companies
– Clients include Glencore, Flame, Peabody, Dragon, Aempire
• The remainder are sold on the spot market
• Currently, IM sells coal to buyers based on fixed priced contracts up to
one year, backed with pre-determined cash prepayments
49
Note:
1. Calorific value
TMU: Coal Concession Overview
Overview
• Area: 3,414 ha
• Location: Loa Janan, Muara Jawa and Sanga-Sanga,
Kutai Kartanegara, East Kalimantan
• Type of license: IUPOP
• Expiry date: 14 December 2023
• Commencement of production: October 2011
• 2012 coal production: ~257,000 tons
IM
Sungai Sangasanga
• Mining consultant: Marston & Marston
ABN
Operations & Marketing
• Current production capacity (31 December 2012):
Completed haul road
to ABN and IM (25 km)
TMU
– Crusher: 1.4 MM tons p.a.
• Produces one variety of blended thermal coal “Trisensa47”, with marketed CV(1) of 4,700 kcal / kg GAR
– May produce additional varieties of blended thermal
coal in the future
Kutai Energi haul
road and jetty
(17 km)
Pulau Seribu
Jetty KE
Sungai Dondang
50
Note:
1. Calorific value
Company Presentation
YTD 9M 2013
1
Disclaimer
These materials have been prepared by PT Toba Bara Sejahtra (the “Company”).
These materials may 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.
2
Content
1
Corporate Profile & Updates
2
Investment Highlights & Growth Strategies
3
Business Overview & Updates
4
Financial Highlights
5
CSR & Environmental Highlights
3
1
Corporate Profile & Updates
4
Toba in Brief
Toba specializes in thermal coal production and comprises three operating subsidiaries: Adimitra
Baratama Nusantara (ABN), Indomining (IM) and Trisensa Mineral Utama (TMU), which hold adjacent
concession areas located in East Kalimantan, Indonesia
• Substantial and diversified thermal coal
reserves and resources
o JORC-compliant proved and probable reserves of
147 MM tons and measured, indicated and
inferred resources of 236 MM tons
o Coal brands with calorific values ranging from
4,700 - 5,800 Kcal / kg GAR
• Strong growth profile
o Produced 5.2 MM tons of coal in 2011 and grew to
produce around 5.6 MM tons of coal in 2012
o Prime location provides the operational cost edge to
grow as a logistical & operational center for the area
o Continued exploration effort to increase our Reserves and
Resources. Current reserves only account for 52% of our
total area has been explored
Revenue (1)
EBITDA(1)
Reserves
Resources
%
%
%
%
TMU
6%
TMU
6%
IM
22%
IM
17%
Total: US$ 45 MM
Note: (1) Last Twelve Month analysis ~ Revenue and EBITDA
TMU
18%
IM
15%
ABN
77%
ABN
74%
Total: US$ 443 MM
TMU
5%
ABN
80%
Total: 147 MM Tonnes
IM
16%
ABN
66%
Total: 236 MM Tonnes
5
Coal Specifications
Calorific Value
GAR
4,200
6,700
4,100
4,200
4,900
6,700
4,500
5,100
5,000
6,500
4,900
4,200
7,200
6,000
5,300
5,900
5,200
TOBA
4,700
5,800
Ash
Sulphur
1,5%
0,1%
2,0%
2,5%
5,0%
5,5%
5,5%
7,0%
Source: Broker Reports
0,1%
13,0%
4,5%
2,0%
1,9%
2,0%
0,6%
8,0%
4,0%
0,2%
0,1% 0,1%
0,2%
3,3%
4,0%
1,4%
0,2%
12,0%
2,5%
TOBA
Toba’s coal quality
is in mid-upper
range
5,100
11,5%
0,2%
10,9%
0,7%
0,5%
1,5%
0,7%
9,0%
TOBA
0,2%
1,0%
1,0%
0,5%
1,0%
6
Ownership Structure
PT Toba Sejahtra ( TS )
Davit Togar Pandjaitan (1)
71.8%
0.8%
PT Bara Makmur Abadi
PT Sinergi Sukses Utama
6.2%
Roby Budi Prakoso
Public
3.6%
5.1%
12.5%
ABN Minorities
49.0%
99.99% (2)
PT Toba Bumi Energi ( TBE )
51.00%
License
Area
• 20-year Production
Operation Mining Permit
( IUPOP ) expiring in
December 2029
• IUPOP was converted from
Kuasa Pertambangan
( KP ) in 2009
• 2,990 ha
Reserve • Reserves: 117MT- JORC
• Resources: 156MT- JORC
Notes:
1. Son of TS founder, Luhut B. Pandjaitan
2. Figures are rounded off
99.99% (2)
• IUPOP expires in June 2013
• IUPOP was converted from KP in
2010
• IUPOP extension was completed
in March 2013 (First out of 2
extensions: in 2023, with tenor of
10 years each)
99.99% (2)
• 13-year IUPOP expires in December
2023
• IUPOP was converted from a KP in
2010
• 683 ha
• 3,414 ha
• Reserve: 22 MT- JORC
• Resources: 37MT- JORC
• Reserves : 8 MT - JORC and
additional 7 MT of internal estimate
• Resources: 43 MT- JORC
90.00%
• Plantation permit expires in 2036
• 8,633 ha (Right to Use Land)
• Planted Area: 2,896 ha
7
Majority Shareholder
Toba believes it benefits from Toba Sejahtra’s experience in the Indonesian coal sector as well as its
leadership and experience
Controlling Shareholder with Established Track Record…
… Helmed by an Experienced Leader
• A privately owned group founded in 2004 with interests in energy
and plantations
• General (Ret.) Luhut B. Pandjaitan is the key shareholder and
founder of Toba Sejahtra group. He is currently the chairman of TS
• Its business segments are as follow:
• Mr. Luhut had a long and illustrious career in the civic service
before turning to the commercial sector. Over the course of thirty
years in the Army Special Forces, Mr. Luhut rose to become a fourstar general
– Energy: Owns 5 coal mining concessions through Toba and PT
Kutai Energi. All of TS' mines are characterized by low production
costs and favorable proximity to ports
– Oil & Gas: In the exploration phase of the 4,567 sq miles South
East Madura Block through subsidiary E&P company PT Energi
Mineral Langgeng
– Power Plant: Operates a 30 MW coal-fired power plant in Palu,
Central Sulawesi and is developing a 120 MW greenfield power
plant in Senipah, East Kalimantan
– Agribusiness: A 25% stake in a 12,000 ha palm oil plantation in
East Kalimantan
– In 1999, Mr. Luhut retired from the military service to serve as
Ambassador for the Republic of Indonesia to Singapore
– In 2000, he was appointed Minister of Industry and Trade of the
Republic of Indonesia
• Thereafter, Mr. Luhut applied his knowledge and leadership skills to
establish TS in 2004, building it from the ground up into a major
business group with interests in energy oil and gas, power and
agribusiness
8
Initial Public Offering
Listed on IDX
Number of Shares Offered
IPO Proceed
Anchor Investor
Ticker Code
06 July 2012
210,681,000 shares or 10.47%
IDR 400,293,900,000
Baring Private Equity Asia (8% at IPO)
TOBA
9
Historical Share Price
Ticker Code: Toba
In full amount IDR
2500,0
IPO (6th Jul 2012)
IDR 1900
1st Nov 2013
IDR 700
2000,0
1500,0
1000,0
500,0
-
2012
2013
Sources: Bloomberg
•
•
Decline in TOBA’s share price reflects lack of liquidity and lack of stock coverage
Going forward, Toba continues to consider various options to increase liquidity and
coverage
10
Key Milestones
Strong track record of acquisitions, development of greenfield mines, rapid production ramp-up and
experience to adjust operation in a down-market
2007
2009
2011
2013
• IM commenced
production
• ABN & IM production
reached 2m tons
• TMU commenced
production
• IM successfully
extended IUPOP
until 2023
• Toba production
hit 5m tons
2007
2008
2009
2010
2011
2012
2013
2008
2010
2012
• ABN commenced
production
• TS acquired the remaining share
for IM from minority shareholder
• Toba acquired the minorities’
shares in TBE and TMU
• Operational
adjustment due to
drop in coal
market
• Toba acquired 51.0% of ABN,
52.5% of TBE (IM’s shareholding
company) and 51.0% of TMU
• IPO/Listed on IDX, 6th July
2012
• Toba production hit 4m tons
• Eliminated overlapping issues
with plantation company (PKU)
11
Investment Highlights and Growth Strategies
12
Solid Operating Track Record (i)
Toba is transitioning from Greenfield into growing major player
Production Growth
MT = Million Tons
6
~5,8~ –6,5
6,4
ABN
IM
TMU
5,6
5,3
0.0
5
0.3
0.3
1.0
3,9
4
1.4
0.9
3
2,0
2
3.8
0.9
1
0
4.4
Forecast
7
3.1
0,8
0,2
0.7
0.1
1.1
2007
2008
2009
Source: Company data
TMU
2010
Indomining
2011
2012
2013
ABN
• Toba started exploration at ABN & IM in 2006 and at TMU in 2008
• Production grew at 65% CAGR from initial size of 800k in 2008 to 5.6 MT in 2012
• Toba focuses on Continuous Production Growth and this is supported by available infrastructure
capacity of 13 MT of coal
• Additional 3 MT of capacity is expected to be realized in 3-4Q13 to become total of 16 MT
13
• Production growth will be driven by TMU and Additional CAPEX will help it fuel growth
Solid Operating Track Record (ii)
Production Growth Comparison 2009 - 2012
CAGR %
Toba’s production growth is among the highest in the industry over the
last 4 years
14
Prime Location Gives Significant Advantage in Cost (i)
Prime Location
0
12
24
36
Major City
Jetty
Transhipment Point
TMU - IM Hauling Road
48
kilometers
4
Major city is
less than 50
km
Muara
Berau
3
Furthest pit to
jetty 25km | with
closest one ~5km
Samarinda
~55 km
(total ~120 km)
Mahakam River
2
IM
ABN
ABN
TMU
~ 5 km
IM Jetty
Close proximity
transhipment
point & jetty
Makassar Strait
ABN Jetty
Kutai Energy 17km
Jetty
1
Adjacent
locations for all
3 mines
~65 km
Muara Jawa
Balikpapan
Toba owns all infrastructures (coal processing plants, overland conveyors, and jetties),
giving significant operating leverage vs other concessions in surrounding areas
15
Prime Location Gives Significant Advantage in Cost (ii)
Coal Chain Distance (a)
In km
90
(b)
Notes :
(a) Weighted average distance based on respective production usage of each transportation facility (from pit to vessel)
(b) Represent ABN & IM only
Source : Broker Reports
Toba’s transportation costs are low due to its close proximity to the
Transhipment Point
16
Global Cash Cost Environment & Indonesia’s Position
Cash Cost Curve in 2009
Global Cash Cost in 2012
US$/ton
Lowest
Median
Weighted average
80
70
71
67
60
47
50
40
30
45
39
29
20
10
0
2009
Cash Cost Curve in 2012
2012
Prod. Cash Cost by Country (Thermal Coal)
Average cash cost prices have moved up by close to 50%...
Cost Reduction Initiatives
SR (x)
Cost Reduction
ABN
TMU
2013F
15.3x
12 – 14x
Potential Cost Saving
Up to US$8 /ton
Dump
Distance
(m)
SR
IM
2012A
2,174
1500 - 1800
13.0x
9 – 11x
Up to US$8/ton
Dump
Distance
(m)
2,365
1800- 2100
SR
14.9x
9 – 10x
Instrastruc
ture
(US$/ton)
US$15 - 20 /ton
US$13/ton US$4 – 6 /ton
18
Substantial Reserves and Resources
Support Production Expansion
Reserves and resources upside from conversion of resources to reserves and further exploration of
concession areas
Reserves (1)
Resources (1)
MM Tons
MM Tons
Coal Reserves and Resources (1) (2) (JORC)
TMU
5.4%
Coal Reserves
Proved
Probable
Total
Reserves
Measured
Indicated
Inferred
Total
Resources
ABN
70
47
117
73
70
13
156
IM
11
10
22
24
10
4
37
TMU
5
4
8
9
8
26
43
Total
86
61
147
106
88
43
236
(MM Tons)
IM
15.0%
TMU
18.2%
IM
15.7%
ABN
66.1%
ABN
79.6%
Total: 147 MM Tons
Total: 236 MM Tons
Coal Resources
Notes:
1. Differences in totals are due to rounding off
2. The Runge Report for ABN was as of 31 December 2011, the PT SMG Consulting Report for IM was as of 1 January 2012 and the Marston Report for TMU
was as of 31 October 2011
19
Substantial Reserves and Resources due to Vast
Unexplored Areas & Relatively Long Reserve Life
Toba’s Concessions
Reserve life ~ Industry Comparison
IM
ABN
TMU
TMU
Note:
Areas already explored
• Explored 3,704 of 7,087 hectares of concession areas
(52% of total concession area) and drilled 3,512
boreholes as of 31 December 2011
• Additional JORC coal reserves and resources
expected to be discovered, especially at TMU where
only 680 hectares out of 3,414 hectares of
concession (20% of TMU concession area) have
only been explored
Source : Broker report
Toba’s reserve life of over 20 years compares
favorably with other listed peers
20
Coal Market Update
Coal Price Trend
Changes in Forward Curve Newc Global Coal Index
100
Range-bound US$77-95/ton
350
300
90
105,9
110,2
95,4
96,7
100,6
83,2
86,6
90,3
93,6
81,7
78,4
81,5
84,5
88,4
91,6
Q3'13
Q4'13
Cal-14
Cal-15
Cal-16
250
200
150
80
100
50
70
0
2012
Source: Newcastle Index
•
•
2013
17-Sep-13
19-Jun-13
2-Jan-13
Source: Global Coal
Coal Prices have bounced back from high 70’s in 2Q 2013 and now on decline trend within
US$ 77-83/ton
Going forward, prices are expected to trade within range-bound of US77-95/ton
21
Strong Relationships with Multinational Customers
Major customers provide the stable
business support for Toba’s marketing…
… minimum marketing fees because Toba
handles our own marketing internally
Major Customers
Toba’s Marketing Operations
Central Marketing Operations of all 3
subsidiaries
Internally developed customer base
that allows Toba to have low marketing
costs
Balance mix of long term contracts,
short term and spot
DRAGON ENERGY GROUP
Active participation in reputable
conference and trade shows to promote
Toba brand
Enhance marketing strategy to sell
directly to end-users
22
Sales by Destination
Our coal is distributed to
major countries in Asia:
-
China
-
Taiwan
-
South Korea
-
India
23
3
Business Overview
24
Strategic Initiatives to Manage Changing Environment
Returning future
Profitability
Level
Strategic Initiatives / Response to Changing Coal Prices
1
Manage cash costs: Lower SR,
Shorten Dump Distance
2
3
Construct hauling road from
TMU to IM
Share current infrastructures :
CPP & Jetty & lower costs
4
Centralize fuel supply
5
6
Optimize sales through hedging
activities
Increase our reserves through
acquisition and exploration
25
Execution and Achievement so far… (I)
OPERATION
Initiative
Execution
Achievement
Manage Cash Cost: lower SR &
dump distance
Mine-plan was adjusted in 3Q12.
Dump distance was lowered despite
pre-stripping in 1Q13 at ABN
Cash cost is on track to be
lowered ~US$8/t by FY13
Construct Hauling Road from
TMU to IM
Construction commenced end-2012
and was scheduled for completion in
2Q13
Hauling road was completed in
May 2013, ahead of schedule
Share Existing Infrastructure
TMU commenced using ABN’s road
and IM’s CPP & Jetty
Production ramp-up at TMU has
been underway since completion
of hauling road. Future
incremental capital cost should be
limited
Conduct Joint Mine Plan
ABN & IM commenced Joint
Border mining end-2012
Maximizing extraction of ~2 MT
of high quality coal reserve at
low SR
Finalize Capex
Completing Coal Processing Plant
(CPP) at IM to increase production
volume to 6 MT from current capacity
of 3 MT
New CPP has been completed
in end-Sept 13 and is expected
to be officially used by mid- Oct
2013
In
Progress
In
Progress
26
Execution and Achievement so far… (II)
FINANCIAL
Initiative
Provide Financing to IM
Optimize Sales through Hedging
Centralize fuel supply
Execution
Maximized current ideal capital structure
by using loan to finance new CPP
construction and land compensation
Made available at Toba’s disposal
hedging line of coal with notable
financial institutions
Sourced constant bulk supply from
major fuel supplier to allow for good
monitoring of effective fuel usage
Achievement
Secured 3-year US$ 15 mn term
loan from SCB at competitive
lending rate of LIBOR + applicable
rate
No hedging facilities has been
utilized. Sold ~72% of 2013 sales
volume using fixed pricing, and
securing cash prepayments
Sourced supply at competitive
price, while continuing to seek
other sources with better pricing
In
Progress
Execution and Achievement so far… (III)
COMMERCIAL
Initiative
Secure sales volume in 2013
Execution
TOBA has successfully sold and
secured ~ 80-90% of targeted sales
volume for 2013
Achievement
• ABN secured ~ 90% of 2013
targeted sales
• IM secured ~90% of total 2013
targeted sales
• TMU secured 50% prepayment
from one of buyers
Enhance marketing expertise
Internal marketing team currently
handles sales activities
TOBA eliminated dependency on
third party marketing agent
Cost Saving Intiatitives (1)
TOBA negotiated directly with
logistics providers
Lower logistics cost (barging
costs) by 18% from 1Q13 to 2Q13
Cost Saving Intitiatives (2)
TOBA negotiated directly with
Contractors
• ABN & IM are currently in
negotiation with contractors to
discuss further cost reduction
initiatives
In
Progress
28
…Next: Objectives in 4Q 2013 & 2014
OPERATION
Initiative
Status
Execution
Finalizing underpass of ABN by 4Q13
to shorten dump distance range and
to increase efficiency
Finalize Capex
• Expected to be completed by the
end of 4Q13
COMMERCIAL
Execution
Initiative
Increase cooperation and internal
integration with suppliers
Working together with contractors on
fleet management and supply parts
management with the end providers
Status
Expected to be completed in 2H 2013
CORPORATE SOCIAL RESPONSIBILITY / ENVIRONMENT
Initiative
Develop and implement Corporate
Social Responsibility
Execution
Goal to receive “Proper” mining awards
for all three mines
Status
To be achieved in 1Q14
Toba’s Milestone 2013
• Hauling Road TMU – IM
completed ahead of
schedule
• IM entered into
new Mining
Contract with
RPP for 5 years
Jan’13
• TMU Production ready
for ramp up to 80 - 100 K
tons/month
Apr’13
2007
• 2nd underpass in
ABN expected to
be completed
May’13
2008
• TMU set up mine
operations in new
pit (block 4)
• Border-mining at
ABN & IM
commenced
Sept’13
………..
2009
2010
Oct’13
2011
2012
• New CPP at IM
expected to be
completed
• IM’s capacity
expected to increase
up to 6 MMTPA
Toba is on track in integrating its operation and infrastructure capabilities
30
Toba’s Business Strategies
1
2
3
4
5
Integration of three
(3) mines
Organically increase
coal production levels
Increase coal reserve
and resource
Strengthen existing
and develop new
customer
relationships
Continue to focus on
health and safety,
environmental track
record and
commitment to CSR
• Benchmarking and
sharing between
departments and
functions
• Expand coal production
through increased
production and mine
development activities
• Optimize and
coordinate mine
planning and logistics
• Strengthen
relationships with third
party mining
contractors and work
closely with them to
improve their
productivity
• Continue exploration
activities to increase
proven and probable
reserves as only 52%
has been explored to
JORC standard
• Supply a higher
proportion of sales
volume to end users,
while maintaining
relationships with
existing coal traders
• Consider opportunities
to acquire coal
concessions with
significant reserves
• Target customers in
Japan, Taiwan, South
Korea, China, Vietnam
and Hong Kong, South
East Asia and India
• Centrally coordinate
and streamline
corporate finance,
legal, human resource
and CSR functions
• Maintain and enhance
high international
operating standards,
utilize automated
mining methods to
minimize accidents and
enhance safety
• Foster community ties
through development
programs as well as job
creation
• Joint mine plan and
infrastructure sharing
Growing Reserves and Maintain Profitability at Different Cycles
31
Toba’s Operational Performance in 3Q 2013
Quarterly Production & Stripping Ratio (SR)
Thousand Tons
Production volume
Stripping Ratio (SR)
20x
2.000
17,6x
16,6x
1.500
15,1x
14.2x
13,6x
15x
12.7x
12.1x
10x
1.000
1.097
1.373
1.574
1.587
1.287
1.501
1.802
1Q 2012
2Q 2012
3Q 2012
4Q 2012
1Q2013
2Q2013
3Q'13
5x
500
• Production volume of 4.6
MMT YTD September (9M
2013) was 75.4% of our FY
2013 production target
• To achieve FY target of
5.8-6.4MMT,
TMU
is
expected
to
be
instrumental in boosting
overall
growth
via
continued ramp-up
Production Summary
MMT: Million Metric Ton
Sales
(MMT)
2Q13
3Q13
1.4
1.6
Change
Comment
17.8%
Sales volume in 3Q13 was higher than in 2Q13 mainly
due to significant production ramp-up in TMU
Q-o-Q production in 3Q13 increased by 20.0% to 1.8
MMT, which was the highest volume booked by Toba
throughout its corporate history
Production
(MMT)
1.5
1.8
20.0%
SR (x)
13.6
12.7
-6.6%
SR continued to fall, stemming from lower mining cost
ABN Operational Performance
Production & Stripping Ratio
Thousand Tons
IM
Production volume (mt)
1.500
Stripping ratio
20x
17,6x
17,1x
16,6x
14,7x
ABN
1.000
12.7x
14,2x
15x
12,6x
10x
TMU
500
Dump
distance
884
1.078
1.224
1.225
1Q12
2Q12
3Q12
4Q12
2,492
925
995
1.188
1Q13
2Q13
3Q13
1,719
1,864
1,843
5x
2,461
1,978
1,723
Key Highlights
PT Kutai Energi
ABN managed to increase production by 19% from 2Q13 to 3Q13
ABN’s 2nd underpass is currently under construction and expected
to be completed by 4Q13 with aim to lower OB dump distance
At 12.7x SR, for every 100 meter-decrease in dump distance is
expected to reduce cost by~US$0.65/ton, contributing to ~US$
3.9/ton in FOB cash cost saving since 3Q12
Operational Advantage & Focus
2
1
Short coal hauling
distance 4km
3
High Built Crusher
Cap 10 mm ton/year
Barge Loading Jetty
Loading Speed of up to
1,800 ton/hour
4
Under-pass:
Capitalizing on Infra
Strength
33
IM Operational Performance
Production & Stripping Ratio
Thousand Tons
Production volume (mt)
500
14,6x
ABN
Stripping ratio
12,7x
14,5x
13,1x
250
9,7x
14,9x
20x
15x
11,2x
10x
TMU
5x
190
236
1Q12
1,693
0
Dump
distance
PT Kutai Energi
265
272
278
360
339
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
2,740
2,136
2,284
1,698
1,662
0x
1,728
Key Highlights
IM’s production in 3Q13 decreased by 5.8% q-o-q due mainly to
higher-than-expected rainfall
On y-o-y basis, dump distance fell by ~400m, falling by 19%
At 13-14x SR, for every 100 meter-decrease in dump distance is
expected to reduce cost by~US$0.82/ton, translating to y-o-y
FOB cost saving of ~US$ 3.3/ton
Operational Advantage & Focus
2
1
Short coal
hauling dist. < 5km
4
3
CPP Ramp up to
6MM TPY
Conveyor for TMU
& Others
Cross Border
Mining with ABN
34
TMU Operational Performance
Production & Stripping Ratio
Thousand Tons
IM
Production volume
300
250
ABN
Stripping Ratio
45,6x
275
200
35x
150
100
50
0
14,4x
23
39
1Q12
PT Kutai Energi
45x
2Q12
17,0x
10,8x
11,2x
25x
12,7x
10.3x
59
85
90
84
3Q12
4Q12
1Q13
2Q13
15x
5x
3Q13
Key Highlights
Note:
---
Hauling road
TMU Coal Production (ktons)
120
109
100
80
Operational Advantage & Focus
1
2
3
72
80
60
40
86
TMU’s production in 3Q13 increased by 88% q-o-q, mainly due to strong
contribution from recently-opened Block 4
TMU’s hauling road to IM was completed ahead of schedule in end-May
2013. To date, IM has been using IM’s CPP and jetty facilities for coal
shipment
In September 2013, production reached 109,000 tons/month, rising 291%
from 32,000 tons/month in January 2013. This level of productivity is
expected to be maintained for the rest of year
50
32
34
22
25
20
0
Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13
16-17km Hauling Road
to ABN is completed
Mine operations
commenced
at Block 4
Integrate CPP
Ops with IM
35
4
Financial Highlights
36
Financial Performance YTD 9M 2013
TOBA
1Q 2013
Operation
Sales Volume
Coal production
Stripping Ratio
NEWC Index
Per Ton Basis
ASP
FOB Vessel Cash Cost
Adj. FOB Vessel Cash Cost
EBITDA
Financial
Sales
Gross Profit
Operating Profit
EBITDA
Net Income before Minority
Interest
Ratio
Gross Profit Margin
EBITDA Margin
Operating Profit Margin
Notes
2Q 2013
3Q 2013
YTD 2013
Change %
(2Q-3Q 2013)
mton
mton
x
US$/ton
1.4
1.3
15.1
93.0
1.4
1.5
13.6
85.9
1.6
1.8
12.7
78.0
4.4
4.6
13.7
85.7
18%
20%
-7%
-9%
US$/ton
US$/ton
US$/ton
US$/ton
66.4
55.4
59.3
6.6
68.1
54.9
56.0
9.1
67.8
53.4
51.1
11.3
67.4
54.4
55.3
9.1
0%
-3%
-9%
24%
US$'M
US$'M
US$'M
US$'M
94.9
14.4
7.7
9.4
93.1
16.7
10.1
12.5
109.3
21.7
11.5
18.2
297.4
52.8
29.3
40.1
17%
30%
14%
46%
6.0
6.6
7.0
19.6
6%
US$'M
%
%
%
1
2
3
15.2%
10.0%
8.2%
17.9%
13.4%
10.8%
19.9%
16.6%
10.5%
17.7%
13.5%
9.9%
(a) FOB vessel cash costs: COGS, Selling Expenses, Royalty,excluding depreciation fixed assets and amortization of exploration
and development
(b) Adj. FOB vessel cash costs: COGS, Selling Expenses, Royalty excluding depreciation fixed asset and amortization of
exploration and development asset & without accounting for component of deferred striping cost
11%
24%
-3%
•
In 3Q13, SR was
lowered by 7%, while
production increased
by 20%...
•
…resulting in 9%
decline in adj FOB
Vessel cash cost
•
ASP slightly rose by 0.4
% despite 9% Q-o-Q
fall in NEWC Index…
•
… EBITDA and Net
Income increased by
46% and 6%
respectively
37
Financial Performance – YTD 2013 vs YTD 2012
YTD 2012
Operation
Sales Volume
Coal production
Stripping Ratio
NEWC Index
Per Ton Basis
ASP
FOB Vessel Cash Cost
(a) Adj. FOB Vessel Cash Cost
EBITDA
Financial
Sales
Gross Profit
Operating Profit
EBITDA
Net Income before Minority
Interest
Ratio
Gross Profit Margin
EBITDA Margin
Operating Profit Margin
YTD 2013 Change %
mton
mton
x
US$/ton
3.7
4.0
16.0
100.1
4.4
4.6
13.7
85.7
20%
13%
-14%
-14%
US$/ton
US$/ton
US$/ton
US$/ton
77.1
65.1
70.8
6.2
67.4
54.4
55.3
9.1
-13%
-16%
-22%
48%
US$'M
US$'M
US$'M
US$'M
283.4
40.8
23.6
22.6
297.4
52.8
29.3
40.1
5%
29%
24%
77%
US$'M
15.9
19.7
14.4%
8.0%
8.3%
17.7%
13.5%
9.9%
%
%
%
24%
23%
69%
18%
Coal production grew 13% (yoy)
driven by TMU production rampup
Toba’s 9M13 production achieved
75% of 2013 based on mid
production target of 5.8-6.4
million tons
FOB vessel cash cost slashed by
16% yoy mainly due to lower
mining costs (lowered SR and
shortened dump distance)
Hence, EBITDA increased by
78% attributable to lower Cash
Cost and Increased Production
by -16% and 13% respectively
38
Note (a)
FOB vessel cash costs: COGS, Royalty, Selling Expenses excluding depreciation and
amortization
Evolution of FOB Vessel Cash Cost
on Quarterly Basis
2Q 2012
SR
ABN
TMU
Notes
4Q 2012
1Q 2013
14,7x
12,6x
16,6x
2Q 2013
14,2x
3Q 2013
12,7x
FOB vessel
cash cost (a)
US$68/ton
US$61/ton
US$56/ton
US$56/ton
US$57/ton
US$57/ton
Adj. FOB vessel
cash cost (b)
US$73/ton
US$64/ton
US$51/ton
US$62/ton
US$56/ton
US$51/ton
13,1x
10,5x
11,3x
12,9x
14,7x
SR
IM
17,1x
3Q 2012
14,5x
FOB vessel
cash cost (a)
US$64/ton
US$49/ton
US$61/ton
US$57/ton
US$53/ton
US$50/ton
Adj. FOB vessel
cash cost (b)
US$71/ton
US$57/ton
US$57/ton
US$55/ton
US$57/ton
US$60/ton
SR
14,4x
10,9x
10,8x
11,2x
12,7x
10,4x
FOB vessel
cash cost (a)
US$69/ton
US$64/ton
US$66/ton
US$44/ton
US$42/ton
US$38/ton
Adj. FOB vessel
cash cost (b)
US$56/ton
US$41/ton
US$64/ton
US$49/ton
US$52/ton
US$42/ton
39
(a) FOB vessel cash costs: COGS, Selling Expenses, Royalty,excluding depreciation fixed assets and amortization of exploration and development
(b) Adj. FOB vessel cash costs: COGS, Selling Expenses, Royalty excluding depreciation fixed asset and amortization of exploration and development asset &
without accounting for component of deferred striping cost
Toba’s Cash Costs Comparisons
Cash Cost (a)
US$/ton
•
TOBA can operate on higher SR
relative to peers mainly due to
lower transportations costs from
location advantages
•
On this chart, FOB Vessel Cash
Cost calculation excludes
marketing fees, in which case
HRUM and ITMG paid
significant amounts
Source (a) Broker Report (September 2013)
Note: Cash Cost excludes royalty calculation
40
Balance Sheet
Balance Sheet
US$’000
Movement
(Sep13 - Dec'12)
Dec-12
Sep-13
Cash and cash equivalents
Fixed Assets
Others
Total Assets
36,307
34,053
191,166
261,526
45,470
42,391
201,976
289,837
25%
24%
6%
11%
Debt
Other Liabilities
Total Liabilities
48,790
101,792
150,582
30,721
136,985
167,706
-37%
35%
11%
Shareholders Equity
110,944
122,131
10%
Total Net debt/Equity
44%
25%
•
Total Assets as per June 2013
increased by 11% from December
2012
•
Cash and cash equivalent rose by
25% compared to December 2012
•
Shareholders Equity surged by 10%
from December 2012 to September
2013, reflecting positive growth return
NEWC Index Price (US$/tons)
120
110
114
97
100
90
90
Despite decreasing trend in coal index
price, total assets grew through stronger
equity base
93
87
86
80
78
70
60
41
1Q12
2Q12
3Q12
4Q12
1 Q13
2Q13
3Q13
Debt and Cash Position
Net Debt Position
US$ Mn
70
60
60
53
49
50
40
59
56
44
39
34 35
35
46
43
36
Cash
30
Debt
20
16
10
0
Net Debt to
Equity
1Q12
2Q12
3Q12
4Q12
2%
34%
6%
11%
1Q13
Net Cash
2Q13
3Q13
3%
11%
Cash balance rose from US$36.3 mn in December 2012 to US$45.5 mn in 9M13
42
Strong Cash Flow Generation
Cash Flow Statements
US$’000
Sep-12
Cash Generated from Operation
Income Tax Payment
Interest income/expenses
Cash flow from Operation
Cash flow from Investment
Cash flow from Financing
Movement in cash flow
Change in Cash due to forex
Beginning Cash
Ending Cash
Sep-13
18,393
(46,338)
(1,419)
(29,364)
33,682
(7,136)
(937)
25,610
(125,145)
135,203
(176)
(10,972)
(19,306)
58,573
39,267
14,461
(5,299)
36,307
45,470
•
During current volatile coal market, Toba
decided to predominantly enter into fixed
price contracts with buyers, while
securing sales on cash prepayment
basis
•
Positive cash position increased by 83%
from US$ 18 mn in 9M 2012 to US$
33mn in 9M 2013 mainly due to
prepayment and lower SR
Extraordinary transaction:
Significant CF from Investment
& Financing as a result of
minority restructuring
43
5
CSR & Environmental Highlights
44
Toba is Committed to Being a Responsible
Corporate Citizen
• Toba is continuously developing and implementing its corporate social responsibility programs
– Creating educational opportunities for local communities including renovating schools, training teachers,
providing post-graduate educational assistance and creating a literacy program for adults and a scholarship
program for school-aged children
– Providing health services to the local communities
– Helping groups of farmers plant crops of vegetables and bamboo and assisting with land rehabilitation
– Creating local employment opportunities by sourcing some of the Company’s site workforce from the
neighboring areas
Providing Health Services
Creating Educational Opportunities
Helping Farmers Plant Crops
45
Award and Recognition
ABN
East Kalimantan PROPER Green
Mining Award
2011
2007
Ernst and Young
Social
Entrepreneur of
the Year 2011
2012
2008
PT Toba Bara Sejahtra Tbk
Ranks as one of Indonesia’s Top
50 companies
2014
2013
2009
Indomining
East Kalimantan PROPER Blue
Mining Award
2010
!
2
0
Target
1
1
PROPER Mining Award for
ABN, IM, & TMU
46
Appendix
47
ABN: Coal Concession Overview
Overview
• Area: 2,990 ha
• Location: Sanga-Sanga, Kutai Kartanegara, East Kalimantan
IM
• Type of license: IUPOP
• Expiry date: 1 December 2029
• Commencement of production: September 2008
• 2012 production: 4.4 MM tonnes
ABN
• Mining consultant: PT Runge Indonesia
ABN
Jetty
Operations
TMU
• Current production capacity (31 December 2012):
– Crusher: 10 MM tonnes p.a.
– Conveyor: 10 MM tonnes p.a.
• Produces two varieties of blended thermal coal
– ABN 52: Marketed
CV(1)
Marketing
of 5,200 kcal / kg GAR
– ABN 55: Marketed CV of 5,500 kcal / kg GAR
– ABN 58 : Marketed CV of 5,800 kcal / kg GAR
• Substantially all of the owners of the land within ABN’s
concession area have been compensated and ABN has been
granted the exclusive right to mine those areas
• Historically sold between 50%-100% of its annual production through
long-term (longer than 1 year) with coal trading companies
– The remainder were sold on the spot market
•
Currently, IM sells coal to buyers based on fixed priced contracts up
to one year, backed with pre-determined cash prepayments
48
Note:
1. Calorific value
IM: Coal Concession Overview
Overview
IM
Jetty
• Area: 683 ha
• Location: Sanga-Sanga, Kutai Kartanegara, East Kalimantan
IM
• Type of license: IUPOP
• Expiry date: IUPOP effective until 2023 and can be renewed for
another 10 years
• Production commencement: August 2007
• 2012 production: 1 MM tonnes
ABN
• Mining consultant: PT SMG Consultants
TMU
Operations
• Current production capacity (31 December 2012):
– Crusher: 3.0 MM tonnes p.a.
– Conveyor: 4.5 MM tonnes p.a.
• Produced one variety of blended thermal coal “Indomining”
with marketed CV(1) of 5,700 kcal / kg GAR in 2012
– May produce additional varieties of blended thermal coal in
the future
• Has compensated the majority all of the owners of the land
within its concession area for their land and has been granted
the exclusive right to mine those areas
Marketing
• Historically sold approximately 50% of its annual production through
short-term (one year or shorter) contracts with coal trading companies
– Clients include Glencore, Flame, Peabody, Dragon, Aempire
• The remainder are sold on the spot market
• Currently, IM sells coal to buyers based on fixed priced contracts up to
one year, backed with pre-determined cash prepayments
49
Note:
1. Calorific value
TMU: Coal Concession Overview
Overview
• Area: 3,414 ha
• Location: Loa Janan, Muara Jawa and Sanga-Sanga,
Kutai Kartanegara, East Kalimantan
• Type of license: IUPOP
• Expiry date: 14 December 2023
• Commencement of production: October 2011
• 2012 coal production: ~257,000 tons
IM
Sungai Sangasanga
• Mining consultant: Marston & Marston
ABN
Operations & Marketing
• Current production capacity (31 December 2012):
Completed haul road
to ABN and IM (25 km)
TMU
– Crusher: 1.4 MM tons p.a.
• Produces one variety of blended thermal coal “Trisensa47”, with marketed CV(1) of 4,700 kcal / kg GAR
– May produce additional varieties of blended thermal
coal in the future
Kutai Energi haul
road and jetty
(17 km)
Pulau Seribu
Jetty KE
Sungai Dondang
50
Note:
1. Calorific value