Bumi Resources Minerals Aims to Double Gold Output by 2028, Boosting Profit Outlook
Main Takeaways
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JAKARTA, investortrust.id – Indonesian miner PT Bumi Resources Minerals Tbk (BRMS) is on track to double its annual gold output by 2028, as part of an aggressive expansion strategy that includes new underground operations and the launch of a new heap leach facility. Backed by strong gold prices and growing reserves, the company is also expected to post a nearly twofold increase in profit this year.
BRMS, a gold and base metals subsidiary of the Bakrie Group, has received a “Buy” recommendation from Danareksa Sekuritas analyst Timothy Wijaya, who set a target price of Rp 480 per share. The valuation was derived using the sum-of-the-parts (SOTP) method, reflecting the company’s strong long-term growth outlook and rising resource base.
“The upcoming production from Gorontalo Minerals and higher output from Citra Palu Minerals will be key catalysts,” said Wijaya in a research note on Thursday, July 3, 2025.
Gold Output Set to Double
BRMS plans to ramp up annual gold production from an estimated 74,000 ounces in 2025 to over 150,000 ounces by 2028, driven primarily by the underground mine at Citra Palu Minerals (CPM). The company is finalizing construction of a heap leach facility expected to be operational by the third quarter of 2025, which will tap into high-grade reserves of 3 million ounces with an average grade of 4.9 grams per ton.
The expansion is projected to deliver a compound annual growth rate (CAGR) of 28% in net profit through 2027, aligning with broader efforts to unlock value across the company’s mineral assets.
Gorontalo Minerals to Deliver Early Cash Flow
Through its subsidiary Gorontalo Minerals (GM), BRMS is targeting its first gold pour from the Motomboto area in the third quarter of 2026. Although the GM site is primarily a copper project, the initial focus will be on gold extraction to generate early-stage cash flow.
Currently, GM accounts for about 58% of BRMS’s total SOTP valuation, making it the most strategic asset in the company’s portfolio. Active exploration in the area is ongoing and could further boost reserves and corporate value.
Earnings Surge Despite Royalty Pressure
BRMS booked a net profit of US$14.5 million in the first quarter of 2025—representing 30% of its full-year profit estimate. This signals a solid start despite headwinds such as a higher gold royalty rate of 16% and declining ore grades, which are expected to weigh on second-quarter earnings.
Nevertheless, the company’s 2025 net profit is forecast to surge by 94% to US$46.7 million. That growth is set to continue with earnings seen rising 28% in 2026 and 29% in 2027, underpinned by increasing production and sustained commodity prices.