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Company Reports

02 December 2024

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BRMS: 3Q24 Results – BUY, SSI TP: IDR 500

Our take on the results (SSI: Below, Cons: Below)

  • Robust 3Q24 top-line on strong gold output of 18 koz (+8.8% QoQ, +111.0% YoY), supported by improved processed gold grade of 1.67 g/t (+6.4% QoQ, +19.3% YoY), reflected better ore quality and higher ASP of USD 2,347/oz (+22.6% YoY).
  • 3Q24 cash costs rose to USD 1,219/oz (+20.0% QoQ, +61.2% YoY), primarily due to the full utilization of CIL Plant, while delivering high recovery rate of around 90%. Despite this, cash margin expanded to USD 1,274/oz (-3.5% QoQ, +10.0% YoY), thanks to strong operating performance. However, 9M24 earnings were below our and consensus estimates due to higher interest charges of USD 3.3mn (+41.1 QoQ).
  • In 4Q24, BRMS plans to commence operations at its 3rd plant, a heap leach facility, adding 4,000 tpd of capacity. Combined with expanded underground mining in 2027F, we project a boost in BRMS’ gold production to 145.4 koz (9M24: 45.4 Koz).
  • On valuation, we maintain our BUY recommendation on BRMS with TP of IDR 500 (SOTP-based), reflecting EV/reserve amounting to USD 26.6/ton. Risks to our call include gold price normalization, potential financing challenges, and operational delays in expansion plans.

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