UOB Kay Hian bullish on Bumi Resources Minerals

By Romel S. Gurky

Gold miner PT Bumi Resources Minerals Tbk (IDX: BRMS) has received a bullish call from UOB Kay Hian, which maintained a “buy” rating on the stock and raised its target price, citing strong earnings momentum and long-term growth prospects.

The brokerage set a target price of Rp1,330 per share, implying an upside of about 87% from the current level of Rp710, according to its March 27 research note.

UOB Kay Hian said BRMS delivered robust earnings in 2025, supported by higher gold prices and improved sales. The company posted net profit of $50 million for the year, up 142% year-on-year, exceeding the brokerage’s expectations.

Despite a softer quarterly performance in late 2025 due to lower ore grades linked to ongoing pushback operations, the firm said the outlook remains positive. It expects earnings to nearly double to around $94 million in 2026, supported by higher gold prices and increased sales volumes.

Read also: Bumi Resources Minerals’ net profit almost double in 2025

The report highlighted several growth drivers underpinning its positive view, including the expansion of the company’s carbon-in-leach processing capacity and the ramp-up of underground mining operations at the Poboya site, which is expected to begin production by mid-2027.

Underground mining is expected to deliver higher-grade ore compared with current operations, supporting longer-term production growth. UOB Kay Hian projects BRMS could reach gold output of about 246,000 ounces by 2030.

In addition, the brokerage pointed to potential upside from copper resources, with drilling results from the Gorontalo project expected in 2027. Early indications suggest the deposit could be comparable in scale to major copper assets in Indonesia.

While near-term production may be affected by a temporary shutdown related to plant upgrades, UOB Kay Hian said the expansion is expected to support a meaningful recovery in output and profitability once completed. …..Click here to read the full article

Editing by Alexander Ginting