PT Bumi Resources Tbk (BUMI) is becoming more aggressive in diversifying its portfolio beyond coal. The mining issuer owned by the Bakrie and Salim conglomerates is targeting non-coal revenue to contribute 50% by 2030, in line with strategic moves through the acquisition of two Australian mining companies.BUMI has officially acquired 41.36% of Jubilee Metals Limited (JML), a producing gold miner in Australia, as well as 99.68% of Wolfram Limited, a gold and copper miner that is targeted to reach 100% ownership in November 2025.“This step expands BUMI’s precious-metal and copper reserve base while strengthening the group’s non-coal exposure,” said Kiwoom Sekuritas Indonesia Head of Research Liza Camelia Suryanata to investortrust.id on Wednesday (Nov 5, 2025).Operationally, the share of non-coal revenue has risen significantly, especially from the gold segment, whose contribution increased to 17% in Q3-2025 from 11% in the same period last year. Wolfram Limited is estimated to have reserves valued at around US$2.26 billion (indicative) and will be fully consolidated starting at the end of 2025.In addition, Liza highlighted that the 41.36% stake in Jubilee Metals Limited (JML) provides direct exposure to producing gold income. Additional synergy also comes through BRMS, which has a portfolio of gold and copper, thereby strengthening BUMI’s non-coal growth path going forward.Financially, Liza assessed that the full benefits of these acquisitions will only be reflected significantly in the 2026 consolidated financial statements, given that integration is still underway. In Q3-2025, BUMI’s revenue grew about 11.9% year on year, but net profit was pressured by as much as 76% year on year due to lower coal prices.“In other words, contributions from precious metals are still in the early stage and will become a key performance driver over the next few years,” she said. From a technical perspective, Liza recommends speculative trading buys for BUMI shares with average-up at Rp144–146 and a target price in the Rp165–168 range.Aggressive AcquisitionsBumi Resources (BUMI) is recorded as holding 41.36% of Jubilee Metals Limited (JML). This was revealed in the notes to BUMI’s financial statements for the period ended September 30, 2025.BUMI management explained that Jubilee Metals Limited (JML) is located in Australia. JML is engaged in gold mining and has entered the production stage. “BUMI is in the process of acquiring Jubilee Metals Limited (JML),” Bumi Resources management wrote in the notes to the financial statements.According to management, the acquisition is being carried out in stages through debt-to-equity conversion and the completion of sale and purchase transactions or the issuance of additional shares. Based on the subscription agreement among JML, Bumi Resources (BUMI), and management shareholders dated May 6, 2025, subscription shares will be issued by Jubilee to BUMI in seven tranches according to a milestone schedule starting May 6, 2025 through August 15, 2026.Regarding the debt-to-equity conversion, BUMI management stated that on May 6, 2025 BUMI and JML (the acquiree) agreed to convert receivables of AUD 8.5 million, equivalent to US$5,393,497, into an equity investment in JML of 18.74%, so that all such receivables were effectively settled on the agreement date.Previously, Bumi Resources (BUMI) had also successfully acquired 99.68% ownership in Wolfram Limited (“Wolfram”), an Australia-based gold and copper mining company, and will reach 100% in November 2025.This acquisition is a follow-up to a term sheet agreement signed earlier this year and has now been finalized after obtaining approval from Australia’s Foreign Investment Review Board (FIRB). This step marks an important milestone in Bumi Resources’ diversification strategy, expanding the company’s portfolio into strategic and critical minerals as well as downstreaming opportunities.“With the completion of this transaction, Bumi Resources takes an important step in its diversification journey. Expansion into strategic and critical minerals aligns with global demand trends and strengthens our commitment to sustainable long-term growth,” said Bumi Resources President Director Adika Nuraga Bakrie.Through Wolfram, Bumi Resources gains access to near-term gold and copper production potential, which is expected to contribute positively to the company’s revenue profile while providing added value for shareholders.
Source https://djakarta-miningclub.com