BRMS - Stronger Margins, Stronger Growth

KBVS Update
Friday, 8 August 2025

BRMS - Stronger Margins, Stronger Growth
(Maintain BUY; TP: IDR560/share)

■ 2Q25 Soft on Lower Volume, 6M25 Remains Solid. BRMS booked revenue of USD58mn (-9.1% qoq, +40.5% yoy) as lower gold volumes from the River Reef pushback (1.4g/t vs 1.5g/t in 1Q25) weighed on output, partly offset by a higher ASP of USD3,282/oz (+16.8% qoq). 1H25 revenue reached USD121mn (+97.2% yoy) with net profit of USD23mn; excluding one-off non-cash charges (~USD14mn from CIL #1 disposal & bauxite project write-off), adjusted net profit stood at ~USD36.5mn.

■ Outlook Raised on Rising Output and Margin Breakthrough. We raise our 27F net profit forecast by +163% on stronger margins and lower costs. The heap leach plant start in 2025 is expected to lift output to 72.4koz in 25F and 89koz in 27F, supported by firm gold prices of USD3,000–3,300/oz. Cash costs are seen at USD1,508–1,574/oz, driving EBITDA margins above 38% and NPM around 16% in 25F. Underground mine development from 2027 is set to triple production with grades of 4.9 g/t and secure a 20-year reserve life.

■ Outlook Raised on Rising Output and Margin Breakthrough. We maintain our BUY rating with a SOTP-based TP of IDR560/share (+22.3% upside), valuing 26F EV/Reserves at USD12,183/ton. Growth will be underpinned by accelerating gold output, margin expansion, and catalysts such as the Gorontalo Minerals project, while key risks include weaker gold prices, operational delays, and financing challenges.

Regards, 
Laurencia Hiemas - KBVS Research