Q2 2017 Investors Update

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Executive Summary


Overall financial performance as at YTD June 2017 better than YTD June 2016
and the Budget

(in million USD)

Revenue (1)
Gross Profit (1)
Gross Profit Margin

YTD June
2016

YTD June
2017 Budget


YTD June
2017 Actual

221.7

347.6

423.1

22%

65.4

136.1

214.1

57%

29%


39%

51%

Var

29%

1) Revenue, Gross Profit include coal and non-coal sales ;

YTD June
2016

YTD June
2017 Budget

YTD June
2017 Actual


5.4

8.1

8.4

3%

3.7

8.4

8.4

0%

Average Selling Price (US$/MT) (1)

41.2


42.7

50.4

18%

Average Cash Costs (US$/MT) (2)

31.2

29.9

28.0

-6%

Sales Volume (milion MT)
Coal Production (million MT)

Var


1) Average Selling Price includes coal and non-coal sales ; 2) Average Cash Costs include Royalty, Barging, SGA;



Overall sales volumes at YTD June 2017 were higher than the Budget mainly
due to increased production at Tabang.



Actual ASP was higher than the Budget as market prices remained above the
Budgeted levels.
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Executive Summary - continued



Sales volumes 2Q17 was 4.7 million MT which was higher than 1Q2017

and the Budget of 4.2 million MT mainly due to increased production at
Tabang.



2Q17 Coal Production achieved was 4.3 million MT which was principally
in line with the Budget of 4.3 million MT. However, it was higher than
1Q17 mainly due to the relocation of our contractor at Tabang to low strip
areas during the quarter in order to better match production and trucking
capacity, earlier commencement of mining at Wahana and the arrival of

additional mining fleets at PIK.



2Q17 SR was 3.9:1 which was principally in line with 1Q17 (3.8:1) and
the Budget of 3.9:1.

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Executive Summary - continued


2Q17 Cash costs of US$ 28.6/MT was lower than the Budget of US$

29.5/MT mainly due to:
• Higher actual sales volumes which decreased certain unit costs
• Lower spend on material and spare parts as well as repair and
maintenance
• Lower unit rates at Tabang in OB Removal, coal mining and hauling as a
result of a discount received from subcontractor to increase the volumes
from the original contract
• Lower than Budgeted demurrage;
• General lower actual fuel price rate which resulted decrease in barging
cost and fuel consumption cost;
Partially offset by:
• Higher weighted stripping ratio at PIK and TSA/FKP;
• Higher royalty cost mainly due to higher ASP;


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2Q 2017
Overburden Removal

Coal Production
Weighted Average Strip Ratio
Average Cash Costs
Coal Sales
Average Selling Price
Committed & Contractual Sales
Debt and Cash Position
Capex
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Overburden Removal (OB)
Overburden Removal
(million BCM)


15.0

1Q17

16.6

2Q17B

17.1



2Q17 OB was 17.1 million
BCM which was higher than
1Q17 and the Budgeted
mainly due to:


Contractor has

mobilized additional
equipment in 2Q17 to
rectify the shortfall and
new geological model
was prepared to correct
for the discrepancies
(TSA/FKP)



Mobilization of
additional mining fleets
at PIK coupled with
lower rainfall

2Q17

Note : B stands for Budget Figure

(in million BCM)

Gunungbayan PratamacoalBlock II
Teguh Sinar Abadi/ Firman
Ketaun Perkasa
Perkasa Inakakerta
Tabang Concessions
Wahana Baratama Mining
Total

Overburden Removal
2Q17B
2Q17
1.5

-

6.1

8.2

1.7
4.9
2.3

2.3
4.4
2.2

16.5

17.1

2Q17 Overburden removal of 17.1 million BCM was higher than the 1Q17 and 2Q17 Budget
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Coal Production
Coal Production Volume
(million MT)

4.0

1Q17


4.3

2Q17B

4.3

2Q17

Note : B stands for Budget Figure

(in million MT)
Gunungbayan Pratamacoal- Block II
Teguh Sinar Abadi/ Firman Ketaun Perkasa
Perkasa Inakakerta
Tabang Concessions
Wahana Baratama Mining
Total

Production
2Q17B
2Q17
0.1
0.5
0.5
0.3
0.3
3.2
3.3
0.2
0.3
4.3

4.3

2Q17 coal production of 4.3
million MT was principally in line
with 2Q17 Budget, however it
was higher than 1Q17 mainly due
to :
 The
relocation
of
our
contractor at Tabang to low
strip areas during the quarter
in order to better match
production
and
trucking
capacity and also as a result of
higher rainfall which flooded
certain sections of the working
area
 Earlier
commencement
mining at Wahana

of

 Arrival of an additional mining
fleet in early April 2017 (PIK)

2Q17 coal production of 4.3 million MT was in line with the 2Q17 Budget
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Actual Weighted Average Stripping Ratio (SR)
Weighted Average Strip Ratio

3.8

3.8

1Q17

2Q17B



2Q17 weighted average
stripping ratio of 3.8: 1
was principally in line with
1Q17 and 2Q17 Budget



Higher SR at TSA/FKP in
2Q17 compared to the
Budget due to change in
scheduling
required
to
develop the pit at higher
production rate compared
to Budget and variations in
the geological model



Higher stripping ratio at
PIK due to change in
production plan following
the
contractor’s
Q2
equipment
deliveries
counteracting operating at
lower strip ratios in Q1
2017

3.9

2Q17

Note : B stands for Budget Figure

Weighted Average SR (:1)

Weighted Ave SR
2Q17B

2Q17

Gunungbayan Pratamacoal Block II

16.3

-

Teguh Sinar Abadi/Firman Ketaun Perkasa

12.1

17.5

Perkasa Inakakerta

6.7

8.6

Tabang Concessions

1.5

1.3

Wahana Baratama Mining

10.0

8.3

Total

3.8

3.9

2Q17 actual weighted average strip ratio of 3.9 : 1 was principally in line with 1Q17 and the
2Q17 Budget
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Average Cash Costs

(US$ / MT)

Average Cash Costs per MT(*)

27.2

1Q17

*

29.5

2Q17B

28.6

2Q17

(1) Average Cash Costs include Royalty, Barging, SGA
(2) US$ is a convenience translation using the average quarterly
exchange rate for the quarter numbers
(3) B stands for Budget Figure

 2Q17 Average Cash Costs were lower than the
Budget of US$29.5/MT mainly due to:
• Higher actual sales volumes which decreased
certain unit costs
• Lower spend on material and spare parts as
well as repair and maintenance
• Lower unit rates at Tabang in OB Removal,
coal mining and hauling as a result of a
discount received from subcontractor to
increase the volumes from the original
contract
• Lower than Budgeted demurrage;
• General lower actual fuel price rate which
resulted decrease in barging cost and fuel
consumption cost;
Partially offset by:
• Higher weighted stripping ratio at PIK and
TSA/FKP;
• Higher royalty cost mainly due to higher ASP;

2Q17 average cash costs were US$ 28.6/MT which was lower than the Budget of US$ 29.5/MT
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Coal Sales

(by volume)

Coal Sales Volume
(million MT)

4.7

4.2

3.7

1Q17

2Q17B

Geographic Distribution (1Q17)

Singapore
3%
Thailand
4%

2Q17 coal sales volume of 4.7 million MT
was higher than 1Q17 and 2Q17B mainly
due to changes in shipping schedule.



India and China are
destinations in 2Q2017



Top Customers 2Q17 (by Sales Volume)
are TNB Fuel, Noble Resources and
Sembcorp Gayatri Power Limited

2Q17

Note : B stands for Budget Figure

Others
14%



the

top

two

India
25%

Indonesia
9%

Korea
11%

China
21%
Philippines
13%

2Q17 coal sales volume was 4.7 million MT which was higher than 1Q17 and 2Q17 Budget due
to changes in shipping schedule
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Average Selling Price (ASP)

(US$ / MT)

Average Selling Price

50.7

40.9

(*)



50.2




1Q17

*

2Q17B

2Q17

2Q17 ASP was US$ 50.2/MT which was
marginally
lower
than
1Q17
of
US$ 50.7/MT but higher than the
Budget of US$ 40.9 due to:
Higher benchmark prices in 2Q17
than the 2Q17 Budget
(US$ 79.8/MT vs US$ 65.0/MT)

2Q17 average CV was 4,682 GAR kcal
compared to 1Q17 at 4,707 GAR kcal

(1) ASP includes coal and non-coal sales
(2) US$ is a convenience translation using the average quarterly
exchange rate for the quarter numbers
(3) B stands for Budget Figure

2Q17 ASP was US$ 50.2/ MT which was higher than the Budget as the Company benefited
from more exposure to the current higher benchmark prices
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EBITDA
EBITDA



(US$ Million)

101.6

2Q17 EBITDA generation was
stronger than Budgeted due to:
 Higher than Budgeted ASP

86.8

 Higher than Budgeted sales
volume

46.8

 Lower than Budgeted Cash
Costs
1Q17

2Q17B

2Q17

Note : B stands for Budget Figure

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Committed and Contracted Sales for 2017

17.7 million MT

28%



As at 30 June 2017 committed and
contracted sales were 17.7 million MT
with an average CV of 4,629 GAR kcal



2017 Fixed Price element at US$
45.69/ MT with an average CV of
4,613 GAR kcal

72%

2017

Fixed Price

Floating Price

Note : June 2017

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Net Debt and Cash
470.3

465.6

465.4
429.9

(in million US$)

318.3
263.1

156.2
119.9
88.1

1Q16

85.3

2Q16

83.7

3Q16

70.4

4Q16

Note : Total Net Debt and Cash + Debt Service Reserve Account (DSRA)

1Q17

2Q17
Net Debt

Cash



As of 30 June 2017, the total TLF Loan was US$ 399.2 million (excluding PIK
Interest)



The Company reduced the Net Debt to EBITDA to 0.86x as at 30 June 2017

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Capital Expenditure
CAPEX

(*)



14.3
11.9

2Q17 Capex was US$ 14.3 million
which was higher than the Budget of
US$ 11.9 million, principally consisted
of:
 Heavy equipments (i.e. Komatsu
Bulldozer, Dump Trailer and
Terrain Crane)
 Tabang related infrastructure at
Senyiur Jetty (i.e. Palu Gravel,
relocation & re installment of Silo
from Pakar to ICF)

2Q17B

2Q17

* US$ is a convenience translation using the average annual
exchange rate;
* B stands for Budget Figure

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Appendix
PT Perkasa Inakakerta

PIK

PT Teguh Sinarabadi

TSA

PT Firman Ketaun Perkasa

FKP

PT Wahana Baratama Mining

WBM

PT Fajar Sakti Prima

FSP

PT Bara Tabang

BT

PT Brian Anjat Sentosa

BAS

PT Tanur Jaya

TJ

PT Silau Kencana

SK

PT Orkida Makmur

OM

PT Tiwa Abadi

TA

PT Sumber Api

SA

PT Dermaga Energi

DE

PT Bara Sejati

BS

PT Apira Utama

AU

PT Cahaya Alam

CA

PT Mamahak Coal Mining

MCM

PT Bara Karsa Lestari

BKL

PT Mahakam Energi Lestari

MEL

PT Mahakam Bara Energi

MBE

PT Graha Panca Karsa

GPK

Tabang

Pakar

Mamahak

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Appendix

Kangaroo Resources Limited

KRL

PT Dermaga Perkasapratama

DPP

PT Indonesia Pratama

IP

PT Muji Lines

Muji

PT Bayan Energy

BE

PT Metalindo Prosestama

MP

PT Sumber Aset Utama

SAU

PT Karsa Optima Jaya

KOJ

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Disclaimer
This presentation contains forward-looking statements based on assumptions and forecasts made by PT. Bayan
Resources Tbk management. Statements that are not historical facts, including statements about our beliefs
and expectations, are forward-looking statements. These statements are based on current plans, estimates and
projections, and speak only as of the date they are made. We undertake no obligation to update any of them in
light of new information or future events.
These forward-looking statements involve inherent risks and are subject to a number of uncertainties, including
trends in demand and prices for coal generally and for our products in particular, the success of our mining
activities, both alone and with our partners, the changes in coal industry regulation, the availability of funds for
planned expansion efforts, as well as other factors. We caution you that these and a number of other known
and unknown risks, uncertainties and other factors could cause actual future results or outcomes to differ
materially from those expressed in any forward-looking statement.

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Thank You

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