PT Resource Alam Indonesia Tbk (IDX: KKGI) · PT Resource Alam Indonesia Tbk (IDX: KKGI) was a...

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PT Resource Alam Indonesia Tbk (IDX: KKGI) was a holding company andsubsidiaries in coal mining and power plant, which operated in severallocations:

1. PT Insani Baraperkasa : CCoW 3rd Generation, East Kalimantan, Concession area 24,477 Ha. Production Stage. Proven Coal Reserve ±

69.82 million tonnes.

2. PT Loa Haur : IUP Production, Middle Kalimantan, Consession Area 5,000 Ha. Proven Coal Reserve ± 12 million MT, kcal 4650-6191 (GAR).

3. PT Kaltim Mineral : IUP Exploration, East Kalimantan, Total Concession Area: 10,000 Ha. Coal Resources ± 60 mio MT, Proven Coal Reserve 34 million MT, Kcal 4329-4560 (GAR).

4. PT Khatulistiwa Hidro Energi, controlling and the owner of 99% PT Bias Petrasia Persada: PPA Mini Hydro with PT PLN, capacity 6.4 MW, at Cicatih-Jawa Barat.

CCoW = Coal Contract of Work; IUP = Izin Usaha Pertambangan

COMPANY OVERVIEW

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Energy ColliersPte Ltd

GoodwinInvestment Prvt

LtdUBS AG Public *

PT RESOURCE ALAM INDONESIA TBK (KKGI)

PT Insani Baraperkasa

PT Kaltim Mineral PT Loa HaurPT Khatulistiwa

Hidro Energi

31.4 % 25.5 % 8.0 % 32.0 %

99.9 % 75.0 % 60.0 % 43.0 %

*) Public ownership do not include buy back of shares 3.6 %

OWNERSHIP STRUCTURE

SEPT 30, 2016

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• The Company is the producer of coal mining concession, theowner of Coal Contract of Work (CCoW) third generation and hadbeen on the production stage.

• Area of concession is 24,477 Ha, and the current mining areaapproximately 2,000 Ha.

• Based on data exploration, proven of coal reserve as of September30, 2016 is about 69.82 million MT.

• Life of mine concession until 2036 (30 years from the productionpermit in 2006). Renewal 2 times 10 years.

• The mine’s location is very strategic with hauling distance of 10-20km, the production cost are relative low.

PT INSANI BARAPERKASA (IBP)

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MINING AREA MAP

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MINING AREA MAP

INSANI BARAPERKASA

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INFRASTRUCTURE CAPACITY 2016

SITE/BLOCK AREA

DISTANCE(KM) PORT

CRUSHER CAPACITY LOADING CAPACITY

Purwajaya 13

Loa Duri1,000 MT/Hour

1,200 MT/HourPurwajaya Selatan 10

Manunggal Jaya 19

Tani Bakti 14

Handil Bakti 22

Handil Bakti 11 PSM 300 MT/Hour 150 MT/Hour

Handil Bakti 11MNCI 750 MT/Hour 1,000 MT/Hour

Tanibakti Utara 15

Tani Bakti Utara 17 SBB 500 MT/Hour 500 MT/Hour

Separi 22 SHS 350 MT/Hour 500 MT/Hour

TOTAL/ Hour 3,500 MT/Hour 3,675 MT/Hour

TOTAL/ Hour 18,792,000 MT/Hour 21,708,000 MT/Hour

* 1 year=360 day, 1 day=18 hour 8

PORT PLAN 2016

773 1.008

2.249

4.222 4.186 4.158

3.418 3.167

2.642

3.500

FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 3Q 16 FY 16

ANNUAL PRODUCTION (in million MT)

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JAN – SEPT 2016

31%

25%

14%

10%

7%

4%4%

4%

0.99%0.01% KOREA

CHINA

INDIA

THAILAND

MALAYSIA

TAIWAN

FILIPINA

SPANYOL

BANGLADESH

DOMESTIK

EXPORT / DOMESTIC SALES DESTINATION

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957.960

888.875

778.108 830.291

759.591

642.884

759.742

1.016.129

945.333

877.491

806.458

500.000

700.000

900.000

1.100.000

1.300.000

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

Sales Volume Quaterly (tonne)

912.143

902.927

749.879

852.732

705.711

814.683

687.132

959.699

1.061.604

898.852

681.928

500.000

700.000

900.000

1.100.000

1.300.000

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

Production Volume Quaterly (tonne)

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AVERAGE SELLING PRICE (US$/MT), FOB VESSEL

CASH COST QUATERLY (US$/MT)

47,91 46,88 44,36 42,08 41,73 39,72 37,93

32,44 29,99 30,89

33,40

-

10,00

20,00

30,00

40,00

50,00

60,00

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

28,37 27,67 27,10 26,88 23,82 22,61 22,26

17,65 16,74 16,97 17,82

0

5

10

15

20

25

30

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

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COAL PRICE TREND - ICI

JANUARY – SEPTEMBER 2016

• The tendency of rising prices due to increased demand of coal from China because of flooding• Stock of Indonesia Coal was reduced because of the weather and the low price on the previous quatermonth

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COAL PRICE TREND - NEWCASTLE & RICHARDS BAY

JANUARY – SEPTEMBER 2016

9M2016(US$/million)

9M2015(US$/million)

(%)

Net Sales 72.45 78.40 (7.60%)

Gross Profit 16.40 18.99 (13.64%)

Income From

Operation9.22 7.15 29.0%

Net Income

After Tax7.19 4.06 77.1%

PROFIT AND LOSS SUMMARY

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9M2016(US$/million)

9M2015(US$/million)

(%)

Total Aset 98.32 93.29 5.40%

Total Liability 13.88 20.64 (32.80%)

Total Equity 84.44 72.65 16.23%

Liability1 0.84 0.63 33.34%

1 Leasing + Bank Loan

FINANCIAL POSITION SUMMARY

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RATIO 9M2016 9M2015

Gross Margin 22.58% 24.23%

Operational Margin 12.73% 9.12%

Net Margin 9.93% 5.18%

ROA (annualy) 9.75% 5.81%

ROE (annualy) 11.36% 7.45%

Debt1 to Equity 0.57% 0.87%1 Leasing + Bank Loan

FINANCIAL RATIO

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1. Using blasting to accelerate overburden activities.

2. Purchase of heavy equipment to support the mining operation.

3. Along with the increase of coal price at this time, the Company seeks

to improve in Stripping Ratio (SR).

4. In an effort to safeguard every pit mine (void) in the site, the

Company has been doing fencing and carry out regular monitoring

with routine patrols.

5. The Company seeks to add new markets in Japan.

6. In 2017 the Company strives to produce coal from the mine of PT Loa

Haur.

EFFORTS TO IMPROVE PERFORMANCE

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Company Award Performance Program on ManagementEnvironment “Grade Blue” at Province of East Kalimantan, 2016

AWARD 2016

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– With the current situation, the companyestimated production until the end of2016 was 3.5 million MT due to highseason of raining on third and fourthquater.

– Hopefully in 2017, coal price will begetting better, therefore the Companyestimate target of production to 4.5million MT.

– The planned production target could beachived given:

a. The overall capacity of infrastructure isalready complete.

b. Additional production from new severalmining site.

c. Increase Stripping Ratio according tomarket condition.

-

0,50

1,00

1,50

2,00

2,50

3,00

3,50

4,00

4,50

5,00

12 13 14 15 16* 17*

PROJECTION 2017

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1. Ensuring the production and sales target in 2017 can be achievedaccording to market conditions.

2. Increase productivity and operational efficiency of the Company inorder to keep generating Superior Return on Equity.

3. Continue to increase level of good corporate governance.

4. Continue to maintain good mining practice included in HSE andenviromental management according to regulations as well ascontinue to implement CSR and Community Development Program.

FORESIGHT

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MAINTENANCE OF HAULING ROAD

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PORT LOADING FACILITY

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PORT LOADING FACILITY

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STOCK PILE

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NURSERY

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NURSERY

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ENVIROMENTAL MONITORING

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HEALTH & SAFETY ENVIROMENTAL TRAINING

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HSE TRAINING

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CORPORATE SOCIAL RESPONSIBILTY - INSANI

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CSR INSANI BARAPERKASA

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CSR / CASTING THE ROAD

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CSR / POND AND FISHING CAGE

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CSR - COMMUNITY DEVELOPMENT

COMDEV TK. PAUD CENDIKIA

CSR ASSISTANCE MTQ ATKEC. LOJANAN

CONSTRUCTION OF POSYANDU AT HANDIL BAKTI

COMDEV COMPLETION OF BPDCONSTRUCTION BANGUN SARI

COMDEV PAUD INSANI

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INNITIAL DEVELOPMENT STAGE

MINI HIDRO CONSTRUCTION

SEPTEMBER 1, 2015

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CONCRETE POURINGFOR WATERWAY WALL

CONCRETE POURING FOR SLAB

BATCHING PLANT

ACCESS ROAD PREPARATION

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WATERWAY FORM WORK

PREPARATION WEIR CONSTRUCTION

EXISTING WEIR

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WATERWAY PROGRESS WATERWAY POURING CONCRETE

VERTICAL CAPLAN TURBINE MINI HIDRO 2X3.2 MW

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VERTICAL CAPLAN TURBINE MINI HIDRO 2X3.2 MW

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VERTICAL CAPLAN TURBINE MINI HIDRO 2X3.2 MW

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These materials have been prepared by PT Resource Alam Indonesia Tbk (the “Company”) and have notbeen independently verified. No representation or warranty, expressed or implied, is made and no relianceshould be placed on the accuracy, fairness or completeness of the information presented or contained inthese materials.

The Company or any of its affiliates, advisers or representatives accepts no liability whatsoever for any losshowsoever arising from any information presented or contained in these materials. The informationpresented or contained in these materials is subject to change without notice and its accuracy is notguaranteed.

These materials contain statements that constitute forward-looking statements. These statements includedescriptions regarding the intent, belief or current expectations of the Company or its officers with respectto the consolidated results of operations and financial condition of the Company. These statements can berecognized by the use of words such as “expects,” “plan,” “will,” “estimates,” “projects,” “intends,” or wordsof similar meaning. Such forward-looking statements are not guarantees of future performance and involverisks and uncertainties, and actual results may differ from those in the forward-looking statements as aresult of various factors and assumptions. The Company has no obligation and does not undertake to reviseforward-looking statements to reflect future events or circumstances.

These materials are for information purposes only and do not constitute or form part of an offer, solicitationor invitation of any offer to buy or subscribe for any securities of the Company, in any jurisdiction, norshould it or any part of it form the basis of, or be relied upon in any connection with, any contract,commitment or investment decision whatsoever. Any decision to purchase or subscribe for any securities ofthe Company should be made after seeking appropriate professional advice.

DISCLAIMER

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