BRMS - Mining the Infinity Gold

KBVS Update
Friday, 13 December 2024

BRMS - Mining the Infinity Gold
(Reinitiate BUY; TP: IDR560)

- Paving the Way for Gold’s Golden Era. BRMS is set for strong growth, with production rising +131.5% yoy in 24F (CIL 2, Poboya), +51.5% yoy in 25F (heap leach, Poboya), and +23.7% yoy in 26F (full comissioning heap leach and Gorontalo Minerals). By 29F, production is expected to grow at +41.4% CAGR (2023–29F), supported by higher-grade gold (3.2 g/t) from underground mining at Poboya.

- Strong +41.8% CAGR EPS from 23A-29F. Driven by strong gold production and rising gold prices, BRMS is poised for significant growth, with 25F revenue projected at USD216 mn (+67.1% yoy), an NPM of 18%, and EPS growth of +59.5% yoy. By 29F, revenue is forecasted to reach USD557 mn (+51.2% CAGR 23A-29F), with an NPM of 26.1% and EPS growth of +48.1% CAGR 23A-29F.

- Reinitiate BUY with a TP of IDR560 (EV/reserve of USD 21.8/ton, +27.9% upside). Additional growth potential lies in untapped commercialization and byproduct sales

Regards,
Laurencia Hiemas - KBVS Research