Bumi Resources Mineral (BRMS IJ) One of a kind
2022-06-28 08:02:29

BRMS is targeting completion of its 2nd processing plant in Palu in 3Q22, effectively operational in 4Q22. Upon completion, gold production could reach 50k oz in 2023 (from 4,903 in 2021). In addition, the company has announced additional new gold assets that contain almost 2 mn oz of gold resources.

BRMS at a glance. Bumi Resources Minerals (BRMS IJ) is a diversified minerals mining company that operates a variety of assets including copper, gold, zinc and lead. The company currently has 3 main assets that are entering the construction stage, namely Dairi Prima Mineral (49% ownership), located in Dairi, North Sumatera (a zinc and lead mining site), Gorontalo Minerals (80% ownership), located in Bone Bolango Regency, Gorontalo Province (a gold and copper mining site), and Citra Palu Minerals (96.9% ownership), in Central Sulawesi (a gold mining site). At the end of 2019, the company successfully completed construction of a processing plant for gold ore into dore bullion at its Poboya mine site, and in 2021, the company managed to produce 139 kg of gold output.

Significant improvement in gold production. Citra Palu has the rights to a 85,180 hectare mining concession in Central Sulawesi and South Sulawesi, through a Contract of Work (CoW). A feasibility study of the Poboya Project was approved by the Government in 2017. Poboya has ore reserves of 8.5 mn tons (3.13 g/t Au). With a positive milestone in 1Q22 (gold production 1,446 oz, +71% yoy), the company believes it can raise the production volume to around 50k oz of gold in 2023 as the company targets completion of its 2nd gold processing plant in 3Q22, with production to be ramped up starting in 4Q22.

Next, Gorontalo. BRMS plans to build a gold processing plant with capacity of 2,000 tons of ore per day in Gorontalo. The company also plans to drill several gold prospect sites to increase the ore reserves at the Motomboto gold mine site. 

Gorontalo’s gold processing plant is expected to be completed in 1Q24.

New promising gold assets. This year, the company announced that it had obtained 2 new promising gold assets named Kerta and linge Abong that contain combined total resources of almost 2 mn oz. The company also plans to monetize these assets with cash flow that will be generated by the CPM asset