Will the Salim Group have a backdoor listing through BRMS?

Reporter: Dityasa H. Forddanta | Editor: Wahyu T. Rahmawati

KONTAN.CO.ID – JAKARTA. PT Bumi Resources Minerals Tbk (BRMS) is likely to record a significant volume of gold production. However, only for the short term. This is because the reserves of 3.9 million tonnes of gold ore that will be processed through Citra Palu Minerals are only equivalent to a mine life of eight years.

Herwin Hidayat, Director & Investor Relations of BRMS, is not yet willing to detail the follow-up plans that will be carried out through Citra Palu, whose source of expansion funds will be rights issue which BRMS has just completed. What is clear is that Citra Palu is not the only valuable asset of BRMS.

In the long term, BRMS can rely on the Dairi Mineral and Gorontalo mineral zinc mines, which in addition to producing gold but also copper. Gorontalo even has five times more resources than Citra Palu.

BRMS is reportedly going to use the proceeds from the warrants conversion worth Rp 1.7 trillion to build a gold and copper production facility in Gorontalo. The operation of these two facilities is scheduled to start in 2024 and 2025 respectively.

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As is well known, BRMS also offers warrants as a sweetener rights issue. The conversion of warrants worth Rp 70 per share will begin in October.

Market reports say the Salim Group is negotiating so that it can take over the ownership of PT Bumi Resources Tbk’s warrants.EARTH) at BRMS. Thus, the Salim Group, through Amman Mineral, can acquire BUMI’s shares in BRMS for Rp 150 per share.

If the transaction occurs, BUMI can use its fresh money to pay off debts to CIC. In addition, Amman Mineral will also become the majority shareholder of BRMS.

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In other words, Amman Minerals will initial public offering (IPO) through the back door or backdoor listing. “For now, we don’t know about this information,” Herwin told Kontan.co.id recently.

Meanwhile, Dileep Srivastava, Director of BUMI, was reluctant to comment on the rumors. However, BUMI has continued to reduce its portion of BRMS lately. At least from the beginning of April to 21 April yesterday, BUMI’s ownership of BRMS had decreased from the previous 8.83% to 5.94%.

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