PT Bumi Resources Minerals (BRMS) views the gold business prospects as still positive, supported by predictions that global gold prices are projected to reach USD 3,000 per troy ounce in 2025-2026, according to various international institutions such as Goldman Sachs, UBS, and JP Morgan.
According to the Director & Chief Investor Relations Officer of Bumi Resources Minerals (BRMS), Herwin W. Hidayat, these predictions create a positive sentiment for BRMS, which is currently on an expansion path for gold production.
As of September 2024, BRMS recorded gold production of 46,000 ounces, with the potential to reach over 55,000 ounces or even approach 60,000 ounces by the end of 2024.
"This is an outstanding increase considering BRMS' gold production in 2023 was around 23,000 ounces. This means the impact of this production increase will be positive for BRMS' financial performance," said Herwin to Kontan on Tuesday (January 7).
Herwin mentioned that the rise in gold production will directly impact BRMS' financial performance, which continues to improve amid the focus on developing strategic projects.
One of BRMS' key projects is the development of underground mining infrastructure in Poboya, Palu. Currently, the mine still uses open-pit mining methods with an average gold grade of 1.5 grams per ton (g/t).
"Our underground mining plan in Poboya is expected to start operating by 2027, with a much higher average gold grade, above 3.5 g/t. This will significantly boost our gold production," Herwin explained.
In addition, BRMS is also focused on completing the construction of a gold ore processing plant in Gorontalo. This facility is scheduled to begin operations in mid-2026, in line with the plans outlined at the Annual General Meeting (AGM) in April 2024.
Regarding the capital expenditure (capex) requirements for 2025, Herwin stated that details on the allocation of capex and its funding sources will be announced in the first quarter of 2025.
