Bakrie Tower,12th floor

Komplek Rasuna Epicentrum

Jl. H.R. Rasuna Said

Jakarta, INDONESIA 12940

Website: www.bumiresources.com

Corporate Information

Monthly Update

: June 2022

Date

: August 3rd, 2022

Markets:

Coal Prices in June fell slightly from the highs in May to $390.68/t for the month of June, versus $406.52/t for the month of May. The drop was due to negative sentiment on the outlook or the world economy, particularly Europe and the US.

High CV coal prices are remaining high as Japan and Europe continue to look for supply elsewhere other than Russia. Forward curves suggest prices staying above $200/t through to 2024 at present.

Lower grade coals with a quality around the 4200GAR level are in line with the ICI4200 index at approximately $85/t. This is due to the continued lack of demand from China and the slow recovery of India's economy.

Operations:

Realized prices in June were up to $143.7/t, as Bumi's prices lag approximately 2-3months behinds the spot curve. Arutmin's realised prices increased to $91.8/t as compared to $82.1/t in May. KPC's price increased from $141.7/t to $163.5/t in June.

Total sales in June decreased from 6.2MT in May to 5.9MT in June. KPC sales were up at 4.2MT in June versus 3.9MT in the prior month. Arutmin's sales dropped to 1.6MT from 2.3MT in May due to heavy rains in South Kalimantan, as we experienced drier weather in the second half on the month.

Coal production was also slightly up in May at 6.0MT versus 5.9MT in April. KPC production increased to 4.6MT in June versus 4.0MT in May due to less rain. Arutmin's production was slightly down to 1.7MT from 2.0MT in May.

The overall cash costs of production increased from $41.63/t in May to $44.74/t in June. KPC's costs increased from $48.25/t in May to $51.59/t in June as higher grade production increased. Arutmin's cash cost of production decreased further to $26.48/t in June from $28.74/t in May. Overall year-to-date cash costs were at $42.24/t, with KPC's cash cost per tonne YTD, at $48.56/t, and Arutmin's YTD costs running at $29.36/t.

PLN / Antam total receivables were down to $192.8m at the end of June from $217.7m in May (payment terms are normally 60-90 days due to administration and umpire samples on quality often requested). Receivables above 90 days decreased from $13.0m in May, to $10.3m in June.

Debt Repayment:

Bumi paid interest on Tranche A of $3.0m in July, representing 7.5%, the Cash interest portion (6.5%) plus the accrued interest (1%) of Tranche A. Bumi also paid $115.3m in principal in July from Tranche A, leaving only $45.5m of Tranche A, which will be repaid in October's payment.

We also expect the principle amount repaid in October to increase compared to July's payment, beginning the repayment of Tranche B.

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Balance as at 11 Jul 2022:

  • Tranche A Balance = $45.5m
  • Tranche B Balance = $918.1m
  • Tranche C Balance = $662.3m
  • CVR = $100.0m

We have appointed BCG on various capacities, amongst which, to support our discussions on debt restructuring with our lenders. A comprehensive business plan (including 3rd party consultant reports) is now available to lenders and can be accessed through a data room that contains other relevant information underpinning the business plans. If any lender or holder of our debts wishes to get access to such information, please contact the following persons at BCG to discuss the process and make the necessary arrangements : Ricole Tan: tan.ricole@bcg.com/ Chaitanya Sood: sood.chaitanya@bcg.com/Benjamin Oh: oh.benjamin@bcg.com.

A Final termsheet is being discussed with the major lenders and we hope to have some updates shortly.

Operations Guidance:

After experiencing the highest levels of rainfall for over 20 years, over the January to May period our production guidance at KPC has been reduced as the revised Workplan and Budget approved by the Government is now set at a limit of 54MT but the record high prices have more than offset the reduced production in respect to cash available and Net Profit.

Production for 2022.

  • KPC: 52MT - 54MT
  • Arutmin: 26MT - 29MT Prices:
  • KPC: $140/t - $160/t
  • Arutmin: $80/t - $100/t Costs:
  • KPC: $40/t-$45/t
  • Arutmin: $28/t-$34/t

MCB Conversions:

All remaining year 4 conversions at Rp 73 based on the principal amount have been settled in Feb 22. All remaining year 4 conversions at Rp 73 based on the principal amount have been settled in Feb 22. Interest will be converted in to shares as soon as possible.

Year 5 principal conversions up to end of July with a total principal of $199.2m were issued 32.9bn shares.

MCB's outstanding as at 22nd July is $289.7m (including the pool factor).

The new conversion price valid from 11th December 2021 is Rp80. This conversion price will apply until 10th December 2022.

For further information, please contact:

Dileep Srivastava

Director & Corporate Secretary

PT Bumi Resources Tbk.

Tel

(62-21) 5794 2080

Fax

(62-21) 5794 2070

email

dileep@bumiresources.com

www.bumiresources.com

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Disclaimer

PT Bumi Resources Tbk published this content on 04 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2022 09:36:02 UTC.