3Q25 revenues: In line with our forecast, beating consensus. BUMI reported 3Q25 revenue of USD 359mn (+9.2% QoQ; +8.6% YoY), bringing 9M25 revenue to USD 1.0bn, in line with our estimate (74.6% of FY25F) and above consensus (84.1%). The solid QoQ growth was primarily driven by coal segment, which contributed USD 854mn (+9.2% QoQ) on the back of higher ASPs, despite -3.8% QoQ decline in Arutmin’s sales volumes to 5.1mn tons. At the bottom line, 3Q25 net profit reached USD 9mn (+254.3% QoQ; -76.3% YoY), bringing 9M25 net profit to USD 29mn (-76.1% YoY), still relatively in line with SSI’s forecast (67.8% of FY25F) as we expect on stronger results in 4Q25 on the back of higher coal prices amid winter season, although this was below consensus (4.6%).

 

Value-accretive gold mine acquisition as positive catalyst. In November 2025, BUMI announced the acquisition of 100% stake in Wolfram Limited, an Australia-based gold and copper mining company. Wolfram owns two key mining assets: Crush Creek, with 191koz of reserves and 470koz of resources (2.3 g/t), and Mount Carlton, with 129koz of reserves and 197koz of resources (1.4 g/t). The transaction implies EV/reserve valuation of USD 133/oz, representing 64% discount to global weighted average of comparable transactions. We view this acquisition as value-accretive, enhancing BUMI’s long-term earnings stability and portfolio diversification beyond coal.

 

New growth engine to be reflected from 2026 onward. Looking ahead, BUMI plans to conduct USD 5.8mn capex to upgrade its Wolfram gold assets with commercial production expected to commence by June 2026 using flotation plant. In addition, the company intends to further expand gold output by 2029F through the development of Carbon-in-Leach (CIL) facility, which requires USD 45.5mn  capex. Assuming Wolfram achieves sales volumes of 40koz at the flotation stage in 2027F, we estimate gold segment could contribute additional USD 221mn revenue, representing 13.6% uplift from our previous forecast.

 

BUY with higher TP of IDR 300 on new gold mine acquisition. We reiterate our BUY rating on BUMI with higher SOTP-based TP of IDR 300/share, implying 34% upside. The target revision primarily reflects incremental earnings contribution from Wolfram’s gold assets and raises NAV from the company’s expanded gold resource base. With BUMI ramping up gold production starting in 2029F, we foresee potential valuation re-rating, as the company gradually undergoes transformation into a diversified metal mining player amid favorable long-term gold outlook. Key risks: (1) lower coal and gold prices, (2) unfavorable regulatory changes, as well as (3) execution challenges in new project developments.