Bakrie Tower, 12th floor
Komplek Rasuna Epicentrum
Jl. H.R. Rasuna Said
Jakarta, INDONESIA 12960
Website: www.bumiresources.com
Corporate Information
BUMI ACHIEVES HIGHER
SELLING
OPERATIONS IN FIRST QUARTER
On Track for Full Year Improved Result
PRICE
AND
STRONGER
− SALES REVENUE UP 19%, CROSSES $1 BILLION MARK
− STRONG OPERATING PERFORMANCE; APPROACHING 16 MILLION TONS
VOLUME
− STABLE OPERATING INCOME $149 MILLION
− FALLING MARKET, WEAKENING CURRENCY HURTS BOTTOMLINE
− ON TRACK TO CROSS 100 MILLION TONS COAL PRODUCTION IN 2014
Jakarta, 4 July 2012
PT Bumi Resources Tbk (BUMI), Indonesia's largest coal exporter and producer, has successfully
maintained a higher sales margin, despite months of despair in the commodities sector, especially,
thermal coal due to apprehension about the Eurozone crisis and speculation of lower short term
growth prospects in China and India.
BUMI announced its first quarter 2012 audited financial results.
A production and sales of 15.9 million tons was recorded compared with 14.3 million tons and
13.9 million tons, respectively, in the same period last year.
Our sales revenue is $1,007.9 million in Jan/Mar '12 up 18.6 percent compared with $849.9 million
in this period last year. This revenue excludes 30 percent of coal sales from KPC and Arutmin
attributable to Tata Power.
Quite to the contrary, the average selling price of our coal is $92.8/ton in Q1'12 compared with
$87.7/ton in Q1'11 or higher by 5.8 percent. BUMI has benefited greatly by its long term contracts
with its blue chip customers.
Although we experienced an 18.9% fuel cost increase ($0.98/liter in Q1'12 vs $0.83/liter in Q1'11)
and expensed full stripping, our gross margin increased by 18.6 percent to $321.3 million yoy.
Page 1 of 9
The key operating and financial metrics are attached for ease of reference.
Bumi has been able to reduce selling commission to 2.5% (from 4%) when Glencore became its
agent for Arutmin in the fourth quarter last year.
Operating income of $149.1 million in Jan/Mar '12 was recorded. A point to note is that
this number adjusts $65.7 million as a one off amortization on our development assets arising from
the new internal accounting policy we adopted this year.
The lower restated net income for Q1'11 is due to the new accounting policy adopted last year.
Under this policy we have restated some figures from last year which may attract investors'
attention in the short term. However, we believe that the benefits from an improved reputation and
adoption of best international practices would far outweigh the short term book adjustments
necessary.
An adverse global market environment, the worsening Eurozone situation, a weakening rupiah and
lower activity at Newmont's Indonesia operations have contributed in, a) reversing our previous
derivative gains because our share price fell by 30% yoy and revaluation of prepayment options of
the 2 remaining tranches of CIC loan, b) forex losses arising from the quarterly revaluations
of VAT refundable by the Government of Indonesia, c) a much lower income inflow from
Newmont Nusa Tenggara because of the expected reduced activity from their Batu Hijau mine until
their new mines are operational. These factors have been the primary reasons for recording
a reversal of our net income from positive to negative in Q1'12. But as the global and market
environment registers improvement we believe the situation would favour Bumi during the later
part of this year.
The attachment “Excerpt from Other Income Statement Q1’12” gives an item-wise the break up of
each factor compared with the same period last year.
STILL DELIVERING ALL PROMISES
The proactive adjustments to new accounting standards - as per regulation and our new
management policy in line with international practices -is another step by BUMI to deliver its
promises in addressing four strategic issues the market is focused on i.e. a) debt reduction
(deleveraging and interest cost reduction), b) value improvement, c) operational excellence, and d)
a perception turnaround.
On operational excellence, Bumi's production increased by 11.5 percent to 15.9 million tons in
Q1'12 from 14.3 million tons in Q1'11. We are hopeful of ending the year at ca 75 million tons
(compared with 65.9 million tons in 2011), of this 80 percent is already contracted and priced at
upwards of $85/ton FOB.
The average strip ratio in Q1'12 is 10.8 compared with 11.9 in the same period last year and we are
working to drop this further to ca 10 which is targeted for this year. This indicates
increasing efficiency in coal production.
If fuel price weakens, we benefit by lower costs. Since 2009 the cost of diesel oil to produce 1 ton
of coal has ranged from $ 5.6 (2009) to a high of $12.6/ton (Q1'12). Hence, the impact is
significant and accounted for 27% of our production cash cost in Q1’12. A lower strip ratio (which
Page 2 of 9
is the volume of overburden removed - bcm - for every ton of coal mined) would be another
downward cost trigger.
Infrastructure balancing projects to achieve a production capability exceeding 100 million
tons/annum of coal in 2014 are on track. The underlying principle adopted is to build overcapacity
across all elements of the coal supply chain and give us a 'make up' capability during adverse
environmental conditions.
The 2nd OLC (Overland Conveyor) has already been installed in KPC - this now enables KPC to
transport 64 million tons of processed coal to the port in a year (in 25 minutes at a speed of 30 km/
hour). The ship loading capacity at Tanjung Bara port in KPC is already operating at 7500 tons per
hour (compared with earlier rate of 4500 tons per hour). Your attention is invited to the attached
story "Riches built on resources - Dedicated infrastructure differentiates Bumi Resources" - this
captures our expansion strategy and present priorities.
According to Bumi Resources Tbk's President Director Ari Hudaya, “Sustaining BUMI's global
market leadership in thermal coal export while facing an uncertain and declining price environment
can only be done by investing more in company's production facility to increase production
capacity whilst improving efficiency.”
"This way, not only are we in a position to lower unit production cost but ensure the company's
ability to offer long term supply contracts at best prices. Our standing in the short term remains
very strong, and our global clientele can have peace of mind due to safe supply," said Dileep
Srivastava, Director and Corporate Secretary of Bumi Resources.
Bumi's management was challenged with maintaining sustainable transformation of the company in
the short term while strengthening its market leadership for the long term, in our businesses.
"For our coal operations, depreciation charges are expected to be higher due to replacement of
older equipment with newer technology and machinery to increase efficiency. So are stripping and
increased mining activity, historical exploration expenses. We expense these today, as far as we
can, as part of our commitment in transforming BUMI as the National Coal Champion with best
global practices," Dileep added.
AWARDS AND RECOGNITION IN 2012
Some recent awards received by us this year are:-
Corporate Governance Asia, Hong Kong recognized BUMI as Best in Investor Relations and
Best Investor Relations Professional in Indonesia on 30 March 2012. BUMI also received the
Best Investor Relations recognition in 2011
-
Corporate Governance Asia Journal, Hong Kong recognized BUMI as the Best Asian Company
for Good Governance on 20 June 2012
-
BUMI Director was awarded the Gold CSR Leadership Award at the 4th Annual Global CSR
Summit, Manila, on 20 April 2012
-
BUMI through its KPC subsidiary won the "Best Sustainability Reporting" Award in The
Natural Resources category at the Indonesia Sustainability Reporting Awards (ISRA) 2011.
This is the 5th year that BUMI has been nominated in this category
A full list of these awards is attached.
Page 3 of 9
PROSPECTS FOR 2012
Production - ca 75 million tons (no change)
Expected price - +$85/ton (from ca $90/ton)
Production cash cost -$42/ ton (from $40/ton & restated $44/ton in FY 2011)
We plan to review in October 2012 and provide a further refinement for this year - based on
Jan/Sep year to date figures.
ANNUAL AND EXTRAORDINARY GENERAL MEETING OF SHAREHOLDERS
−
These were held in Jakarta on 21 May 2012.
−
A dividend of 15 percent of net income in 2011 amounting to Rp 14.31 per share was declared
−
Resolutions approved by shareholders and published subsequently are attached.
BROADER OBJECTIVES OVER THE NEXT 2 YEARS
-
Deleveraging, to a debt to EBITDA level of ca 1x by the end of next year
Target to settle CIC's tranche 2 ($600 million) and tranche 3 ($700 million) in late 2012 and
2013 - 2 years early
(NB : CIC's tranche 1 $600 million already settled in Nov '11 though due in Q4'13 – at almost
one-third of the borrowing cost)
Thereby, reducing interest costs significantly
− Crossing 100 million tons per annum coal production in 2014 leading to significant rise in
EBITDA reinforcing the deleveraging process
− Monetising of additional assets such as BRMS and accelerating their development.
FIRST QUARTER FINANCIAL RESULTS 2012
Our Q1’2012 Audited Financials have been submitted to the Indonesian Stock Exchange and would
be posted on their web site www.idx.co.id and on ours at www.bumiresources.com soon.
For further information, please contact:
Dileep Srivastava
Director – Corporate Secretary
PT Bumi Resources Tbk.
Tel
(62-21) 5794 2080
Fax
(62-21) 5794 2070
email
[email protected]
www.bumiresources.com
Page 4 of 9
ENCLOSURE:
−
Key Operating Metrics Q1' 2012 vs Q1' 2011
Financial & Operating
−
Other Income - Breakup - Q1' 2012 vs Q1'2011
−
New Accounting Standards and Management Policy adopted
−
Recent Awards & Recognitions
−
'Riches built on resources - Dedicated infrastructure differentiates Bumi Resources' - The
Asset Magazine, Hong Kong, May '12
−
AGM/EGM Resolutions passed on 21 May 2012
Page 5 of 9
KEY OPERATING METRICS Q1’2012 VS Q1’2011
Profit & Loss
(in US$ million)
Revenue
Gross Margin
Operating Income
Net Income before Tax
Tax Income (Expense)
Net Income (Loss)
Q1’12
1,007.9
321.3
149.1
(24.5)
(82.7)
(100.4)
Q1’11 Restated
849.9
271.1
171.7
221.0
(109.7)
108.2
Change
18.6%
18.6%
-13.1%
-111.1%
-24.7%
-192.8%
OPERATION SUMMARY, Q1’2012 VS Q1’2011 (ON 100% BASIS)
Physical
Overburden Removed (Mbcm)
Coal Mined (Mt)
Strip Ratio (bcm/t)
Coal Sales (Mt)
FOB Price (US$/ton)
Cash costs (US$/t mined)
Q1’12
172.4
15.9
10.8
15.9
92.8
(46.3)
Q1’11 Restated
170.2
14.3
11.9
13.9
87.7
(44.2)
Chg
1.3%
11.5%
9.5%
14%
5.8%
-4.8%
Page 6 of 9
OTHER INCOME – BREAKUP – Q1’12 VS Q1’11
Other Income (Expense)
(in US$ million)
Equity interest in NI of Associates
Gain (loss) on Derivative Asset
Gain (loss) on Forex – net
Interest Income
Interest Expense & financial charges
Gain (loss) on sale of investments
Amortization of expenses
Others – net
Total Other Income (Expenditure) – net
Q1’12
3.5
(16.2)
(8.2)
9.5
(143.7)
(14.2)
(4.3)
(173.6)
Q1’11
39.3
106.2
80.0
13.2
(144.2)
(35.9)
(12.0)
2.8
49.3
Chg
-91%
-115.3%
-110.2%
-28.1%
0.3%
-100%
-17.8%
-257.7%
-451.9%
Page 7 of 9
MAJOR ACCOUNTING STANDARD CHANGES
6
Effective January 1, 2012, the Group adopted PSAK No. 64, “Exploration for and Evaluation of Mineral Resources” and
PSAK No. 33 (Revised 2011), “Accounting for General Mining”, both of which replaced PSAK No. 29, “Accounting for
Oil and Gas” and PSAK No. 33 (1994), “Accounting for General Mining”. PSAK No. 64 permits an entity to develop an
accounting policy for exploration and evaluation assets specifaclly considering the requirements of paragraph 10 of
PSAK No. 25 (Revised 2009). It requires entities recognizing exploration and evaluation assets when facts and
circumstances suggest that the carrying amount of such assets may exceed their recoverable amounts.
New PSAK
The adoption of PSAK No. 64 resulted to
combination of “Oil and Gas Properties” and
“Deferred Exploration Costs” previously
presented as separate line items to
“Exploration and Evaluation Assets” in the
consolidated statements of financial position.
Page 8 of 9
RECENT AWARDS & RECOGNITIONS
1. Received the Best Asian Company in 8th Corporate Governance Asia Annual Recognition Awards 2012. The award was presented by Corporate
Governance Asia – Journal on Corporate Governance in Asia, Hong Kong, 20 June 2012
2. Received the 2nd Asian Excellence Recognition Awards 2012 for Best Investor Relations by an Indonesian company PT Bumi Resources Tbk. and Best
Investor Relations Professional – Mr Dileep Srivastava from Asian Excellence Awards and 9th Years of Corporate Governance Asia in Hong Kong, 30
March 2012
3. Received Indonesian Trusted Company 2011 Award by SWA Magazine based on investor and analyst survey of GCG practice in Indonesia, Jakarta, 19
December 2011
4. Received Corporate Governance Perception Index (CGPI) 2010 Award as “Trusted Company” based on assessment conducted by Indonesia Institute for
Corporate Governance (IICG), Jakarta, 19 December 2011
5. Ranked of 8th in Coal & Consumable Fuels in Asia, 11th in Coal & Consumable Fuels globally, 64th in Overall Performance in Asia and 226th on
overall global performance by 2011 Platts Top 250 Global Energy Company, Singapore, 2 November 2011
6. Ranked the Best Managed Company and Best Investor Relations, in Asia’s Best Companies 2011 by Finance Asia, July 2011
Page 9 of 9
Riches built on resources
Dedicated infrastructure differentiates Bumi Resources
64 million tonnes of coal per year – KPC’s twin overland conveyors
Adverse market conditions challenge Bumi Resources’ management
to balance the conflicting demands of deleveraging its balance sheet
while gearing up production capacity at the same time. A blue chip
customer base has enabled the company to navigate a path through
difficult times, on its way to achieving its objective of becoming a
more diversified natural resources powerhouse
O
ver the first quarter of 2012, Indonesia received a
record US$5.6 billion of foreign direct investment,
with mining accounting for US$1.1 billion, the
largest share.
The figures illustrate that more capital is being attracted
to Indonesia than ever before. They also highlight the fact
that the economy is diversifying away from its reliance on
natural resources, with a wide range of sectors capturing the
US$4.5 billion balance.
Responsible for producing a quarter of Indonesia’s thermal coal output, PT Bumi Resources too is diversifying.
President director and chief executive officer Ari Hudaya
observes that a diversified mining resource model has proven
its worth. “In our case, diversification would reduce the cyclical risk of being dependent on the price of one commodity,
lowering portfolio risk.”
At the same time, director and company secretary Dileep
Bumi Sponsored Section for The Asset May2012b.indd 1
Srivastava acknowledges that many investors seek pure-plays,
especially when looking to Indonesian companies. A reliance
on coal mining alone leaves companies vulnerable to price
volatility, however. A May 4 ratings outlook from Standard
& Poor’s illustrates the danger. The credit rating agency cited
an expectation for moderately lower coal prices in 2012 as
one factor behind a revision of its outlook for the company
to negative.
“It’s premature to judge” whether or not coal prices are
weakening at present says Srivastava, noting that in 20 years
of operations, PT Bumi Resources has yet to witness a cyclical drop which has lasted for more than six months. Further,
a large percentage of the company’s exports are subject to one
year contracts, insulating the company from price dips. A
high quality, blue chip customer base means that the company
has yet to experience any bad debt on its sales.
Overall, the company achieved a price of US$91.60 per
tonne in the first quarter of 2012 and expects to average
US$90 per tonne over the year as a whole based on contracts
already in place. While this is down from the US$92.70 average achieved last year, it is up from 2010s US$71.30 per tonne
average and significantly up from US$45 per tonne achieved
five years ago, in 2007. Further, Bumi Resources “expects
higher volumes at price levels close to 2011 levels” says Sriv-
21/05/2012 12:35 PM
and Russia – which are located hundred and
thousands of miles from the sea respectively
– KPC is less than ten miles (13 kilometres)
from the coast.
Diverse benefits
The KPC and Arutmin assets – along
The ongoing Eurozone debt crisis has added to
with the company’s PT Fajar Bumi Sakti
uncertainty over coal prices as well as contrib(FBS) – are based in Kalimantan, which has
uting to delays in major shareholder Bumi plc’s
no rail infrastructure and is largely undevelplanned diversification. Srivastava comments
oped, promoting a great deal of interest from
that Bumi Resources’ parent company “did not
a broad range of stakeholders. Also known as
proceed with the BRM sale last year”, referring
Indonesian Borneo, Kalimantan’s land mass
to the planned sale of metals-focussed Bumi
is larger than that of countries such as New
Resources Mineral (BRM) to major Bumi ReZealand, Thailand and Vietnam.
sources shareholder Bumi plc, “because of the
Srivastava observes that one factor difadverse market conditions which rendered the
ferentiating Bumi Resources from other
convertible bond strike price impractical”. The Hudaya: Bumi Resources’
mining companies operating in Indonesia is
sale was one of many transactions scuppered by potential to build up scale
the dedicated infrastructure that the compathe uncertainty surrounding the situation in the is a key strength
ny has put in place. “Infrastructure expanEurozone. Proceeding with the sale would have
sion projects are on track – notably KPC’s second overland
resulted in the company achieving a 20% discount on the
conveyor commissioned in April – providing us with contargeted sale price of US$2 billion. In short, shareholders
fidence of being able to achieve [our target] of 75 million
would have been disadvantaged by a sale of BRM to Bumi
tonnes of coal production in 2012,” he remarks. Combined,
plc, at a depressed price amidst adverse market conditions.
the company’s two overland conveyors can transport 64 milIn contrast to coal-focussed Bumi Resources, BRM is
lion tonnes of coal per annum over the 13 kilometres from
active across a range of metals – from exploration projects
the processing facility to the port, a journey which takes 25
in the copper, gold and iron ore subsectors to a lead and
minutes and runs 24 hours a day barring occasional breaks
zinc project under construction. In addition to coal, Infor maintenance and repairs.
donesia is home to world leading copper, gold, nickel and
Bumi Resources produced 66 million tonnes of coal in
silver resources. While Bumi Resources fuels Asia’s growth
2011, up from 25 million tonnes in 2003, the year that the
– providing thermal coal to power generators throughout
company acquired its second mining asset. Production has
the region – the metals produced by BRM will help meet
consistently increased and is targeted to reach 114 million
the needs of industries beyond power generation.
tonnes per year by 2014, signifying an acceleration of proOne example is the vast amount of investment spendduction increases as it seeks to exploit more of the 2.9 billion
ing required by Asean’s infrastructure sector, estimated at
tonnes in JORC-certified marketable coal reserves across
US$1 trillion over the next decade at the Asian Developfour mining assets.
ment Bank’s annual meeting this year.
These include: a 50% stake in east Kalimantan-based
FBS and an 85% stake in south Sumatra-based Pendopo
Higher volumes
Energi Batubara (PEB) in addition to KPC and Arutmin.
Mining companies typically attract a greater level of scruReserves have more than doubled from 1.4 billion
tiny than other companies, with the best assets tending to
tonnes recorded less than five years ago. Further, estimated
attract the most interest. To date, foreign investors have
resources are over three times greater, at 10 billion tonnes.
made over US$4 billion debt and equity investments in
Key to boosting output this year is 65%-owned east
the company – including Tata Power’s US$1.3 billion inKalimantan-based KPC, which covers a concession area of
vestment in 2007; China Investment Corporation’s (CIC)
90,960 hectares. The aim is to increase KPC’s production
US$1.9 billion in 2009; and Vallar’s US$1.3 billion in 2010.
capacity to 75 million tonnes per annum (tpa) by 2014,
Bumi Resources is one of Indonesia’s most liquid shares and
with the potential for further upside given that KPC is
widely held by over 8,000 individual and institutional invesonly partially explored suggesting future reserves expantors around the world.
sion (as resources are converted to reserves once measured
Bumi Resources’ key assets – PT Kaltim Prima Coal
and proven).
(KPC) and PT Arutmin Indonesia (Arutmin) – are amongst
Currently, KPC’s proven reserves stand at 1,423 billion
the highest quality coal reserves in the world, contributing
tonnes. In contrast, Arutmin’s proven reserves amount of
to the company’s position as the world’s second largest – and
466 million tonnes; FBS 335 million tonnes; and PEB 687
fastest growing – coal exporter. And KPC’s position as the
million tonnes. Economies of scale are important when it
single largest coal exporting mine in the world. In 2005, Incomes to mining bulk commodities such as coal, given the
donesia overtook Australia to claim the title of world’s leadcost of upgrading infrastructure facilities.
ing exporter of thermal coal. Unlike coal mines in Australia
astava, resulting in an expectation that “revenue
should be far higher than 2011 or 2010”.
Bumi Sponsored Section for The Asset May2012b.indd 2
21/05/2012 12:35 PM
Paying down debt will see Bumi Resources “cut interest
Funding expansion
expenses by more than 50% by end 2013, from US$610 milThe US$1.8 billion cash requirement to expand coal produclion at present” and achieve a “target to deleverage from the
tion and supporting infrastructure to 114 million tpa by 2014
current debt to adjusted EBITDA ratio of 2.8x to 2x by end
is expected to increase earnings before interest, taxation, de2012 and 1x by end 2013”. Srivastava notes that “fears of depreciation and amortization (Ebitda) by US$900 million per
leveraging delays are due to well known factors outside our
annum. Srivastava explains that “KPC and Arutmin expancontrol” such as whether or not the Eurozone crisis worsens.
sions are priorities when it comes to free cash flow, with deleAdditionally, the above-mentioned S&P report observes
veraging to be achieved by monetizing other assets”.
that “we do not capture the US$230 million that PT RecapiSrivastava remarks that “Bumi is hopeful of inflows from
tal Asset Management owe Bumi given the uncertainty surBukit Mutiara, Recapital and BRM strategic partnering to
rounding this payment”. Less than three years ago, PT Bumi
meet our deleveraging objective” observing that “free cash
Resources extended a US$300 million subordinated loan to
flow may not be adequate to deleverage since Bumi needs
Recapital, to facilitate the asset manager’s acquisition of PT
to cover interest and manage the KPC and Arutmin expanBerau Coal. Major shareholder Bumi plc owns an 85% stake
sions”. Additionally, the company has maintained a stable
in Berau Coal Energy which in turn owns a 90% interest in
dividend policy for the past six years.
Berau Coal. Bumi plc owns a 29.2% stake in Bumi Resources.
While the quality of Bumi Resources’ assets has seen the
company enjoy good relationships with an expanding range
Core strength
of financial sponsors, key to freeing up funds for expansion is
“Transport accounts for a large share of the user cost of
the paying down of US$1.9 billion of high yielding debt CIC
bulks compared to base and precious metals,” Hudaya emacquired in September 2009, which accounts for over half of
phasizes. “Consequently, Bumi Rethe company’s total debt and the bulk
sources’ potential to build up scale is
of interest payments.
a key strength.”
Srivastava notes that, “tranche 1,
Following the increase in capacamounting to US$600 million, of the
ity at KPC (See illustration), future
CIC loan was refinanced at one third of
growth will be driven by assets such
the original cost” in November 2011 –
as those operated by PEB, which is
highlighting the benefits of deleveragthe lowest cost coal producer in Ining. “The plan is to repay the remaindonesia albeit lower quality coal
ing two [US$600 million and US$700
than KPC’s. PEB accounts for some
million] tranches in the fourth quarter
23.6% of Bumi Resources’ reserves,
of 2012 and 2013 – two years ahead of
schedule” in each case, says Srivastava. Coal on the conveyor – 25 minutes from mine to port second behind KPC (49%) and ahead
Second heavy duty conveyor (in green)
doubles stockpiling (in green and red)
and blending capacity; extends to barge
terminal (6 million tpa, on right) as well
as rejoining first conveyor to ship loading
(being upgraded to 60 million tpa). Second
deep sea terminal under construction
to enable simultaneous loading of two
220,000 tonne-capacity ocean-going
vessels. Captive power plants with
45-megawatt capacity installed, seeing a
phasing out of diesel generators.
Bumi Sponsored Section for The Asset May2012b.indd 3
21/05/2012 12:35 PM
Conservation and Borneo Orangutan Survival
Foundation to relocate orangutans found in its
mining concessions and contributes to the One
Billion Indonesian Trees (OBIT) programme.
KPC has led the way in setting an example for
Bumi Resources’ other operating companies
to follow, taking efforts to gain SGS accreditation for mine rehabilition and environmental
management, for example. The management is
actively engaging with the government to work
Strategic partnering
towards raising standards across the industry
Srivastava comments that “Bumi continues to
and its efforts have been widely recognized.
explore avenues to monetize a part of BRM
The company – and operating companies such
through strategic partnering”. Such a developas KPC – have won awards ranging from the
ment would mark a further example of partIndonesian Sustainability Reporting Award to
nering across the ecosystem of industry opera- Srivastava: KPC and Arutmin
tors and stakeholders. For example, Mitsubishi expansions are priorities when it the Best Asian Corporate Governance Award,
Best Investor Relations and Best Practice for
Corporation markets KPC’s production in Ja- comes to free cash flow
Energy Management in Buildings and Induspan while Enercorp markets Arutmin’s output
tries and Social Empowerment Award.
in Indonesia and Glencore has done so for KPC outside of
Japan and Indonesia since 2003. In November 2011, Bumi
Ongoing demand
Resources renewed an agreement for Glencore to market
The company can afford to take a long view in spite of specuArutmin’s production outside Indonesia, with a 2.5% marketlation over the timing of the deleveraging process. Uncertain
ing commission. At the same time, operational independence
growth prospects in China have clouded the outlook for cokis maintained, allowing enough flexibility to adapt to evolving
ing coal. At the same time, demand for thermal coal remains
market conditions and retain negotiating power.
strong. Additionally, the company benefits from secure, longOn February 24, it was reported that prices had been
term supply contracts with highly-rated companies across
fixed for 15-16 million tonnes of coal Bumi Resources is set
the industry. End users range from Japanese utilities such as
to sell in 2012, with 35 million tonnes committed to conJ Power and Hokuriku Electric to Indonesia’s PLN, China’s
tracts with variable prices. Consequently, the company may
Huaneng Power International, Hong Kong’s China Light &
benefit from a rise in coal prices for output not subject to
Power and Malaysia’s Tenaga Nasional.
contract, should prices rise.
Coal, along with liquefied natural gas imports and renewA great deal of management experience has also been
able energy, have helped fill the gap experienced in Japan,
gained in managing a wide range of mining contractors.
which shut its last working nuclear power reactor on May 5,
Experience has in part been reflected by vastly improved
leaving the country without nuclear power for the first time
safety records across the company – with lost-time injuries
since May 1970. Bumi Resources expects to ship about 14 mildeclining significantly over the past decade, even as produclion tonnes of thermal coal to Japan in 2012, marking a sigtion has soared.
nificant increase over the 12.7 and 12 million tonnes shipped
And declining forward strip ratios have helped offset
in 2010 and 2011 respectively. The company also expects to
increased fuel costs. As more low ranked coal is mined, less
supply 7 million tonnes of coal to Tata Power in 2012, as part
overburden needs to be removed for every unit of coal exof its 15-year, extendible joint venture partnership.
tracted. Srivastava adds that, “the level of US$40 per tonne [of
The added demand should help ensure PT Bumi Recoal] presently guided this year on assumption that fuel prices
sources achieves its four major objectives. Namely: (1) delewould hold but would be offset by the lowered strip ratio”.
veraging, to a debt to EBITDA level of 1× by end 2013; (2)
Contained costs help maintain profit margins, with a cost of
this objective will be helped by the
US$40 providing a sizeable comfort
achievement of the second objective
margin given a selling price in the reFor more information, please contact
– paying off the CIC loan; (3) while
gion of US$90 per tonne.
the third objective – crossing the
The management team has also
100 million tonne per annum mark
experienced a sharp learning curve
will see a significant rise in EBITwhen it comes to managing stakeDileep Srivastava
DA, further reinforcing the deleverholder relations in the broadest
Director & Corporate Secretary
aging process; and (4) accelerating
sense. Partnership extends to nonTel : +62 21 57942080/Fax +62 21 57942070
the development and monetization
governmental organizations (NGO).
e-mail: [email protected]
of additional assets, such as those
For example, KPC collaborates with
web site : www.bumiresources.com
owned by BRM.
the local Office of Natural Resources
of Arutmin (16%) and FBS (11.5%).
PEB sees Bumi Resources diversify within
the coal sector, mirroring Bumi plc’s planned diversification beyond coal, with the development
of mine mouth coal-fired power stations plants
and potential coal gasification and liquefaction
projects in partnership with leading companies
in these fields.
Bumi Sponsored Section for The Asset May2012b.indd 4
21/05/2012 12:35 PM
TO ALL SHAREHOLDERS
THE RESOLUTIONS OF THE SECOND ANNUAL GENERAL MEETING OF SHAREHOLDERS
AND
EXTRAORDINARY GENERAL MEETING OF SHAREHOLDERS
The Board of Directors of PT Bumi Resources Tbk. (the “Company”) hereby announces to the Shareholders that the Second Annual General Meeting and
Extraordinary General Meeting of Shareholders (the “Meeting”) of the Company convened on May 21, 2012 in Jakarta have resolved and approved the following:
Annual General Meeting of Shareholders:
1.
To Approve the Company's Annual Report, the main points of which have been delivered by the Board of Directors of the Company and reviewed by
the Board of Commissioners regarding the conditions and the management of the Company for the fiscal year ended December 31, 2011.
2. a.
To Approve the Company’s Financial Statements for financial year ended 31 December 2011 as audited by Public Accountant Tjiendradjaja &
Handoko Tomo with unqualified opinion as evident from its report No. 049/H/I/2012 dated March 27, 2012.
b.
To grant full release and discharge (acquit et de charge) to the Board of Directors and Board of Commissioners from their operational and
supervisory duties they had performed for the fiscal year ended December 31, 2011 to the extent that they are reflected in the Annual Report and
Financial Statements for fiscal year ended December 31, 2011 and do not run counter to the applicable law.
3. a To approve the use of net profits of the Company for the year 2011 amounting to USD 220.5 million to be allocated for the following:
b.
4.
-
Total cash dividends amounting to Rp. 290,395,705,965.75,- or Rp. 14.31,- per share based on the number of issued shares, excluding shares
repurchased by the Company as of the date of the Meeting amounting to 473, 212, 607 shares.
-
Recorded as retained earnings amounting to Rp. 1,645,575,667,139.25,- which will be utilized for business expansion of the Company. .
To grant the Board of Directors the authority to further regulate the procedure for disbursement of the dividends and announce the same with due
regard to the prevailing rules of the capital market on which the Company’s shares are listed.
To approve and grant power and authority to the Board of Commissioners to appoint a Public Accountant to conduct an audit of the financial statements of
the Company for the year ended December 31, 2012 and/or for a certain period throughout 2012, as well as grant power and authority to the Board
of Directors of the Company to determine the honorarium of Public Accountant and other requirements for the appointment thereof.
Extraordinary General Meeting of Shareholders:
1.
a To approve the Company’s plan to pledge or put up as collateral or encumber with security interest or assign a major portion or all of the Company’s
assets, directly or indirectly owned, to its creditors, be it the creditors of the Company or those of its subsidiaries, including but not limited to (i) pledge
over part or all of shares owned and controlled by the Company in the subsidiaries, either directly or indirectly or other securities; (ii) fiducia over bank
account claims, insurance claims, inventories, escrow accounts of the Company or the subsidiaries; (iii) collateral or other security interest over assets
of the Company or the subsidiaries, be it movable or immovable, created for the purpose of financing or obtainment of loans from third party, granted
to or received by the Company or the subsidiaries, either in the present or in the futureas required by Article 102 of Law No.40 of 2007 on Limited
Liability Company.
b. To confer the power and authority on the Board of Directors of the Company with the right of substitution to execute the decision in respect of approval for
collateralization with the above security interest, including but not limited to prepare or cause to be prepared any and all necessary deeds, letters as
well documents , but not limited to share pledge deed, fiduciary guarantee deed over bank account claims, insurance claims and inventories, as well as
security or collateral over other assets of the Company or the Company’s subsidiaries, to appear before any authorized official, including notary, to
submit a request to any authorized official to seek approval or report the same to the authorized official as referred to in the applicable law.
2. 1
To approve the replacement of Mr. Jay Abdullah Alatas and Mr. Sulaiman Zudhi Pane from their respective positions as Commissioners of the
Company and grant them full release and discharge (acquit et decharge) from their activities/actions that they had conducted in relation to their
function as Commissioners of the Company, which replacement shall take effect as of the closing of this Meeting.
2.a To approve the appointment of:
i. Mr. Samin Tan as President Commissioner of the Company;
ii. Mr. Suryo Bambang Sulisto as Vice President Commissioner
(Independent Commissioner)
iii. Mr. Kusumo Abujono Martoredjo as Commissioner;
iv. Mr. Alexander Ramlie as Commissioner;
v. Mr. Scott Merrillees as Commissioner;
vi. Mr. Edison Mawikere as Commissioner;
vii. Mrs. Eva Novita Tarigan as Commissioner;
viii. Mrs. Veronica Tampubolon as Commissioner; and
ix. Mrs. Nenie Afwani as Commissioner;
To approve the re-appointment of:
Mr. Iman Taufik as Independent Commissioner
Mr. Fuad Hasan Masyhur as Independent Commissioner
Mr. Nalinkant Amratlal Rathod as Commissioner
Mr. Anton Setianto Soedarsono as Commissioner
Where the appointment shall be effective from the date of closing of this Meeting.
3.
To approve replacement of Mr. Eddie Junianto Subari from his position as Director of the Company and grant him full release and discharge (acquit
et decharge) from all of his activities/actions that he had conducted in respect of his function as Director of the Company, which replacement shall
take effect as of the closing of this Meeting.
4.
To approve the appointment of Mr. John Slack as Vice President Director of the Company, Mr. Kenneth Raymond Allan and Mr. Stefan White as
Directors of the Company, where the appointment shall be effective from the date of closing of this Meeting.
5.
To appoint and determine the composition of members of Board of Commissioners and Board of Directors of the Company as of the closing of this
Meeting to be as follows:
Board of Commissioners
Samin Tan
Suryo Bambang Sulisto
Iman Taufik
Fuad Hasan Masyhur
Kusumo Abujono Martoredjo
Nalinkant Amratlal Rathod
Anton Setianto Soedarsono
Alexander Ramlie
Scott Merrillees
Edison Mawikere
Eva Novita Tarigan
Veronica Tampubolon
Nenie Afwani
:
:
:
:
:
:
:
:
:
:
:
:
:
President of Commissioner
Vice President Commissiner (Independent Commissioner)
Independent Commissioner
Independent Commissioner
Independent Commissioner
Commissioner
Commissioner
Commissioner
Commissioner
Commissioner
Commissioner
Commissioner
Commissioner
:
:
:
:
:
:
:
President Director
Vice President Director
Director
Director
Director
Director
Director
Board of Directors
Saptari Hoedaja
John Slack
Kenneth Patrick Farrell
Dileep Srivastava
Andrew Christopher Beckham
Kenneth Raymond Allan
Stefan White
6.
To grant full powers and authority with the right of subtitution to Board of Directors of the Company, either jointly or severally to perform any and all
necessary actions in relation to any resolution as adopted and/or resolved herein, including but not limited to put this appointment of members of Board
of Commissioners and Board of Directors of the Company into a notarized deed and register the composition of Board of Commissioners and Board of
Directors of the Company as mentioned above in the Company Register in accordance with the prevailing laws and regulations.
7.
To approve the grant of authority to Board of Commissioners of the Company to determine the salary, honorarium and other allowances (if any), as well
as distribution of duties and authority of each member of Board of Directors.
8.
To approve the grant of authority to Board of Directors, together with Board of Commissioners to determine honorarium and other allowances (if any) to
all members of Board of Commissioners.
Jakarta, 23 May 2012
PT Bumi Resources Tbk
Board of Directors