BRMS – To increase gold production capacity

BRMS – To increase gold production capacity Bumi Resources Minerals (BRMS) is optimistic about maintaining good performance this year due to stable gold prices. This is in line with the fact that gold is still a safe haven in the midst of uncertain geopolitical and economic conditions; many countries have replaced the USD into their respective currencies as foreign exchange reserves; and high demand. BRMS will maximize this opportunity by increasing gold production capacity, one of which is through a gold ore processing plant with a capacity of 4k tons of ore per day in Palu, North Sulawesi, which is currently almost complete. The factory is targeted to operate in 2H24 and will complement the production facilities that already exist in Palu. Currently, BRMS has operated 2 gold plant in Palu with a capacity of 500 tons and 4k tons of ore per day, respectively. BRMS is also working on the construction of a gold ore processing plant with a capacity of 2k tons of ore per day in Gorontalo, which is targeted to be completed in June 2026. As of 1Q24, BRMS has produced 9,623 troy ounces (+278% yoy) of gold. BRMS targets production of more than 35k troy ounces this year. To finance the plant development, BRMS allocated a capex of USD150 mn this year. Along with the increase in gold production capacity, BRMS also opens up opportunities to acquire new gold mines. However, the acquisition plan is not yet specific and will be explored further. Note that, BRMS posted revenue of USD20.3 mn (+250% yoy) and net profit of USD3.58 mn (+77% yoy) in 1Q24. (Source : Kontan)