BRMS - 3Q24 gold output surges with higher grades and rising ASP

BRMS - 3Q24 gold output surges with higher grades and rising ASP Bumi Resources Minerals (BRMS) recorded a sharp increase in gold production in 3Q24, with output reaching 18,622 oz (+8.8% qoq), bringing its 9M24 output 45,466 oz—well above the 2023 output of 23,270 oz. This growth was driven by full-capacity operations at its Palu plant and processing of higher-grade ore, with ASP rising to USD2,347/ oz from USD1,930/ oz in 2023. The processed gold grade also increased to 1.67 g/t from 1.57 g/t in 2Q24. By late November 2024, BRMS plans to release audited Q3 results and JORC-compliant mineral reserve data for CPM, which will include higher-grade gold from underground mining prospects, along with details on capital expenditures for Palu and Gorontalo projects as it seeks funding for expansion. (Source : Company) Comment : Given BRMS's impressive share price surge and the anticipated strength of the upcoming 3Q24 results, we see potential for an upward revision to our Target Price. While we currently maintain our TP at IDR236, our positive outlook on BRMS remains strong, supported by the company’s robust production growth, strategic projects, and an overweight outlook on gold prices. These factors reinforce our confidence in BRMS's promising future.