BRMS - Driving growth with high-grade gold reserves

BRMS - Driving growth with high-grade gold reserves Bumi Resources Minerals (BRMS) announced high-grade gold reserves averaging 4.9 g/t from its underground mining prospects at Poboya, Palu, based on JORC-compliant reports by AMC Consultants. Total reserves, including open-pit and underground, average 3.2 g/t, equating to 3.54 mn ounces of gold. With underground mining set to begin in 2H27, production is expected to double compared to the current 1.5 g/t open-pit operations. BRMS has partnered with Macmahon Indonesia and recruited experienced mining engineers to support this expansion. CEO Agus Projosasmito highlighted the reserves' high gold content as a strong driver for future growth. BRMS is also targeting loan facilities of USD200–300 mn to kick-start its underground mining project in Palu by early 2025. (Source : Company) Comment : With higher gold grades of 4.9 g/t, BRMS revenue is set to reach ~USD318mn (+164.1% vs. 2024F) in 2028F and net profit of ~USD40 mn (+85.5% vs. 2024F) in 2028F. Strong gold prices ahead support potential earnings growth, leading us to likely upgrade our Target Price soon.