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Fourth Quarter 2012Update Presentation
1
Executive Summary
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YTD 2012 financial performance was lower compared to YTD 2011
The decrease was due to weak market conditions that resulted insignificantly lower ASP and increased cash costs
(1) Revenue, Gross Profit, PBIT, and Net Income include coal and non-coal sales ; 2) US$ is a convenience translation using the average yearly exchange rate and quarterly rates
*
Sales Volume (milion MT) 15.3 16.0 +5%Coal Production (million MT) 15.6 16.3 +5%
Average Selling Price (US$/MT) 97.4 88.2 (9%)Average Cash Costs (US$/MT) 74.7 78.1 +5%
Var2011 2012
(1) Average Selling Price includes coal and non-coal sales ; 2) US$ is a convenience translation using the average yearly exchange rate and average quarterly exchange rate; 3) Average Cash Costs include Royalty, Barging, SGA; 4) B stands for Budget Figures
*
Revenue 1,509.3 1,422.9 (6%)Gross Profit 439.8 258.7 (41%)Gross Profit Margin +29% +18%Net Income 213.3 54.9 (74%)
(in million USD) 2011 2012 Var
2
Executive Summary - Continued
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2012 Coal Production was 16.3 million MT which was within the range of the
Revised Guidance although growth was lower than anticipated due to the weak
market condition
2012 Cash costs (include COGS, Royalties, and SGA) was US$ 78.1 / MT which
was lower than the range of the Revised Budget but higher than 2011 Cash Costs
at US$74.7 / MT due to higher standard strip ratio in the first half of 2012 as a
result of pit optimization at certain sites.
2012 Coal Sales volume was 16.0 million MT which was within the range of the
Revised Budget but the increase in volume was lower than expected due to the
following :
Underperformance of BUMA at PIK Temporary suspension of coal mining at GBP Lower barging at FSP/BT due to lower river levels
3
Executive Summary - Continued
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2012 ASP was US$ 88.2/MT which was within the range of the Revised Budget
but lower than 2011 ASP at 97.4 / MT due to weak market conditions which
impacted financial performance
2012 Capex spent was US$ 157.7 million
Major spend included partial payment of the KFT-2; PIK Jetty Extension and
Ship Loader; expansion of stockpiles and reclaiming capacity at the jetty and
intermediate crushing facility at WBM; purchase of equipment and machinery
at GBP and Tabang
4
4Q 2012
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Overburden Removal
Coal Production
Weighted Average Strip Ratio
Average Cash Costs
Coal Sales
Average Selling Price
Committed & Contractual Sales
Debt and Cash Position
Capex
5
Overburden Removal (OB)
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(million BCM)
Overburden Removal
4Q12 Overburden removal was 48.2 million BCM which was lower QoQ and YoY but was within the range of the 4Q12 Revised Budget
59.8 65.8
48.2
4Q11 4Q12B 3Q12 4Q12
41.6 to 53.1
4Q12 OB was 48.2 million BCM which was lower than 3Q12, 4Q11 but was consistent with the Budget due to Lower strip ratio has
taken effect Planned standby of some
of the subcontractors’ fleets
Industrial action and termination of PPA at MCM and continued operational inefficiencies at PIK
4Q11 4Q12Gunungbayan Pratamacoal - Block II 19.1 19.1 Gunungbayan Pratamacoal - Block I 1.0 0.7 Perkasa Inakakerta 6.4 4.4 Teguh Sinar Abadi 5.1 1.1 Firman Ketaun Perkasa 5.1 7.5 Fajar Sakti Prima 1.2 0.6 Bara TabangWahana Baratama Mining 21.6 14.4 Pakar SouthMamahak 0.3 0.4 Total 59.8 48.2
Overburden Removal(in million BCM)
Note : B stands for Budget FigureBudget Actual
238229 to 245
YTD 2012 OB
6
Coal Production
(million MT)
Coal Production Volume
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4Q12 coal production was 3.9 million MT which was within the range of 4Q12 Revised Budget
3.94.4
3.9
4Q11 4Q12B 3Q12 4Q12
3.6 to 3.9 4Q12 coal production was 3.9 million MT which was lower than 3Q12 but was still within Budgeted levels
Coal production was lower at certain sites due to Lower OB Revised mine plans
4Q11 4Q12Gunungbayan Pratamacoal - Block II 1.0 1.1 Gunungbayan Pratamacoal - Block I 0.1 0.0 Perkasa Inakakerta 0.6 0.6 Teguh Sinar Abadi 0.4 0.0 Firman Ketaun Perkasa 0.3 0.9 Fajar Sakti Prima 0.4 0.4 Bara TabangWahana Baratama Mining 1.1 0.9 Pakar SouthMamahak 0.0 Total 3.9 3.9
(in million MT)Production
Note : B stands for Budget FigureBudget Actual
16.315.4 to 16.3
YTD 2012 Production
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Actual Weighted Average Strip Ratio (SR)
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Weighted Average Strip Ratio
4Q12 actual weighted average strip ratio of 12.2 : 1 which was within the range of 4Q12 Revised Budget
15.1 14.9 12.2
4Q11 4Q12B 3Q12 4Q12
12.0 to 13.0
4Q12 SR was 12.2:1 which was lower than 3Q12, 4Q11 but within Budgeted levels
SR was revised to reduce cash costs and was put into effect in the fourth quarter
SR in TSA and GBP Blk 1 was high as a result of insignificant production volume in 4Q124Q11 4Q12
Gunungbayan Pratamacoal - Block II 18.5 18.2 Gunungbayan Pratamacoal - Block I 11.5 17.7 Perkasa Inakakerta 10.6 7.2 Teguh Sinar Abadi 10.5 24.7 Firman Ketaun Perkasa 17.5 9.2 Fajar Sakti Prima 3.1 1.3 Bara TabangWahana Baratama Mining 20.5 16.0 Pakar SouthMamahak 18.0 14.9 Total 15.1 12.2
Weighted Average SR (:1)Weighted Ave SR
Note : B stands for Budget FigureBudget Actual
14.714 to 15
YTD 2012 SR
8
Average Cash Costs per MT(*)
Average Cash Costs
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(1) Average Cash Costs include Royalty, Barging, SGA(2) US$ is a convenience translation using the average quarterly exchange
rate for the quarter numbers(3) B stands for Budget Figure
(US
$ /
MT)
4Q12 average cash costs was US$75.1 / MT which was lower than Revised Budget
*
Pertamina Diesel Oil Price(*)
4Q12 Average Cash Costswas higher than 3Q12 butwas lower than 4Q11 andBudget due to Changes in PSAK which
no longer allow for theaccrual of costs ifactual SR is below LOMSR and the write-off ofthe previous amountaccrued
Annual rise and fall adjustments to contractors, DMO payments and several one-off payments(U
S$
/ li
ter)
* Published by Pertamina, including PBBKB and VAT
1.08 1.07 1.09
4Q11 2012B 3Q12 4Q12
1.0 to 1.2
93.0
71.3 75.1
4Q11 2012B 3Q12 4Q12
76.0 to 78.0
Budget Actual
76 to 78 78.1
YTD 2012 Cash Costs
Budget Actual
1.11.0 to 1.2
YTD 2012 Price(*)
9
Coal Sales (by volume)
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(million MT)
Coal Sales Volume
4.4 3.8 4.1
4Q11 4Q12B 3Q12 4Q12
3.9 to 4.1
Geographic Distribution - 2012
4Q12 coal sales volume was4.1 million MT which washigher than 3Q12 due to theimprovement in water levelsat Kedang Pahu River (GBP)and Belayan River (Tabang)which allowed for barges tobe fully loaded but wasbelow 4Q11 due to theprolonged dry season
India remains Bayan’sbiggest customer in terms of sales volume
Top customers (by sales volume) Adani, Coal & Oil, Enel, Taipower, and Vitol
4Q12 coal sales volume was 4.1 million MT which was within the range of the Revised Budget
Note : B stands for Budget Figure
21%
8%
16%
7%20%
6%
10%
12%
China
Taiwan
India
Japan
Philippines
Malaysia
Others
Italy
Budget Actual
16.016.0 to 16.5
YTD 2012 Sales
10
Average Selling Price (ASP)
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(US
$ /
MT)
Average Selling Price (*)
4Q12 ASP was US$82.3 / MT which was lower than the Revised Budget
(1) ASP includes coal and non-coal sales(2) US$ is a convenience translation using the average quarterly
exchange rate for the quarter numbers(3) B stands for Budget Figure
*
100.9
79.0 82.3
4Q11 2012B 3Q12 4Q12
88.0 to 90.0 4Q12 ASP was US$ 82.3 / MT
which was higher than 3Q12 but lower than Budget due to weak market conditions
4Q12 average CV was 5,829 GAR kcal compared to 3Q12 at 5,853 GAR kcal
Budget Actual
88.288 to 90
YTD 2011 ASP (*)
11
Total Debt and Cash
In April 2012, the Company refinanced its existing debt with a US$750 million facility which comprises :
US$ 400 milion Term Loan Facility, amortizing over 5 years
US$ 200 million Capex Facility, amortizing over 5 years
US$ 150 million Working Capital Facility, bullet after 3 years
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290.9 278.5
462.1 441.7 431.2415.0
613.1
695.3
201.2 209.8
143.4 158.5128.2 115.9 99.5
152.8
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12
Total Debt Cash
(in
mill
ion
US
$)
12
Capital Expenditure
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US$ is a convenience translation using the average annual exchange rate; B stands for Budget Figure
*
(US$ million)
CAPEX (*)
YTD Capex was US$ 157.7 million
Major spend include : Payment for the KFT-2 PIK Jetty Extension Stockpile expansion at WBM Purchase of machinery and
equipment in GBP, WBM, IP, and Tabang
135.0
157.7
Budget YTD Actual
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PT Perkasa Inakakerta PIKPT Teguh Sinarabadi TSAPT Firman Ketaun Perkasa FKPPT Wahana Baratama Mining WBMPT Fajar Sakti Prima FSPPT Bara Tabang BTPT Brian Anjat Sentosa BASPT Tanur Jaya TJPT Silau Kencana SKPT Orkida Makmur OMPT Tiwa Abadi TAPT Sumber Api SAPT Dermaga Energi DEPT Bara Sejati BS PT Apira Utama AU PT Cahaya Alam CA PT Mamahak Coal Mining MCMPT Bara Karsa Lestari BKLPT Mahakam Energi Lestari MELPT Mahakam Bara Energi MBEPT Graha Panca Karsa GPK
Tabang
Pakar
Mamahak
Appendix
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Appendix
Kangaroo Resources Limited KRLPT Dermaga Perkasapratama DPPPT Indonesia Pratama IPPT Muji Lines MujiPT Bayan Energy BEPT Metalindo Prosestama MPPT Sumber Aset Utama SAUPT Bara Karsa Lestari BKLPT Karsa Optima Jaya KOJ
15
Disclaimer
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This presentation contains forward-looking statements based on assumptions and forecasts made by PT. BayanResources Tbk management. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and speak only as of the date they are made. We undertake no obligation to update any of them in light of new information or future events.
These forward-looking statements involve inherent risks and are subject to a number of uncertainties, including trends in demand and prices for coal generally and for our products in particular, the success of our mining activities, both alone and with our partners, the changes in coal industry regulation, the availability of funds for planned expansion efforts, as well as other factors. We caution you that these and a number of other known and unknown risks, uncertainties and other factors could cause actual future results or outcomes to differ materially from those expressed in any forward-looking statement.
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