(July 3, 2025)--PEFINDO has assigned its idA+ rating to PT Bumi Resources Tbk (BUMI)’s proposed Shelf Registered Bond I of maximum IDR5 trillion. The Company plans to issue Shelf Registered Bond I Phase I, a maximum of IDR350 billion that will be used to partly finance the acquisition of Wolfram Limited. At the same time, PEFINDO has affirmed its idA+ rating with stable outlook to BUMI. The rating reflects BUMI’s strong business position as well as sizeable mining reserves and resources. The rating is constrained by its moderate cash cost position, risk of developing new project, as well as exposure to fluctuating commodity prices and environmental risk.
The rating may be raised if BUMI manages to reduce its cash costs, which will enhance the Company’s profit margins and strengthen its operating management. The rating may also be raised if BUMI successfully diversifies its business and generates a significant revenue portion from sources other than thermal coal while maintaining its current coal production levels. We may lower the rating if the Company obtains more significant loans than projected without being compensated by additional revenue and EBITDA, which will aggravate its financial profile. Deteriorating revenue or EBITDA due to lower coal prices or sales volume may also put pressure on BUMI’s rating.
BUMI operates in the coal and gold mining industries through its subsidiaries, PT Arutmin Indonesia and PT Bumi Resources Minerals Tbk, respectively. The Company also has majority shares of 51% in PT Kaltim Prima Coal (KPC), one of Indonesia’s largest coal mining companies. As of December 31, 2024, BUMI was owned by Mach Energy (Hongkong) Limited (45.78%), HSBC-FUND SVS A/C Chengdong Investment Corp-Self (10.56%), Treasure Global Investment Limited (8.08%), and public (35.58%). (ends)
