BRMS Shares Gain Support as Analysts Raise Target Price on Strong Gold Output Outlook

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JAKARTA, Investortrust.id — Bumi Resources Minerals, or BRMS, one of Indonesia’s largest diversified miners by market capitalization, has drawn renewed optimism from analysts after significant progress at its Citra Palu Minerals gold project led to higher production targets and upward revisions in earnings forecasts.

The company is advancing the second phase of tunneling at the underground mine, while simultaneously expanding its processing facility capacity to 2,000 tons per day from 500 tons previously. The accelerated expansion plan has prompted BRI Danareksa Sekuritas and UOB Kay Hian Sekuritas to raise their target prices for BRMS shares to Rp 1,080, maintaining a buy recommendation.

According to BRI Danareksa analysts Naura Reyhan Muchlis and Nashrullah Putra Sulaeman, the main infrastructure of the Citra Palu Minerals (CPM) mine has been installed, and the processing facility is entering its third development phase. The ongoing infill drilling program, they added, could lead to an increase in mineral reserves and improve underground production prospects over the next several years.

The broker’s research noted that BRMS has also revised its gold price assumptions higher, now using projections of US$3,500, US$4,100, and US$4,400 per troy ounce for 2025, 2026, and 2027 respectively. “With these adjustments, BRMS’s net profit forecasts for 2025, 2026, and 2027 are revised up by 12%, 79%, and 96%, supported by higher selling prices and stronger operating leverage once the expansion is completed in 2027,” the analysts wrote.

BRI Danareksa’s revised target price of Rp 1,080 reflects higher underground asset valuations at CPM and a clearer monetization outlook. Similarly, UOB Kay Hian analyst Benyamin Mikael cited BRMS’s strong third-quarter results as another factor for optimism. The company booked a net profit of US$15 million in the third quarter of 2025, up 123% year-on-year and 85% quarter-on-quarter, driven by a 3% increase in gold sales volume and a 5.7% rise in average selling price.

BRMS’s cumulative net profit for the first nine months of 2025 reached US$38 million, a 142% jump compared with the same period a year earlier, representing 80% of the full-year forecast. While the first CIL plant’s capacity upgrade temporarily reduces short-term output, the second CIL facility, operating at around 4,500 tons per day since mid-2025, has provided strong production support.

Underground mining development at Poboya, managed by contractor PT Macmahon Indonesia, remains on schedule. Production from the new underground operation is expected to start by mid-2027, with ore grades ranging between 3.5 and 4.9 grams per ton—significantly higher than the current 1.5 grams per ton. Combined with expanded plant capacity, BRMS aims to lift its total gold output to 246,000 ounces by 2030.

Disclaimer: InvestingPro data as of the time of publication. All financial figures and projections are for informational purposes only and do not constitute investment advice or an invitation to buy or sell any security.

From a valuation standpoint, BRMS currently trades at Rp 960 per share, near the upper end of its 52-week range between Rp 274 and Rp 1,190. Based on InvestingPro’s latest model, the company’s fair value is estimated at Rp 745.65 per share, implying a 22.3% downside from current levels. However, analyst targets compiled by InvestingPro from seven brokerages suggest a median price of Rp 775.51, with the most bullish target at Rp 1,135.

With a market capitalization of about US$8 billion and an estimated free-float adjusted market cap of US$2.7 billion, BRMS now exceeds the minimum requirement of US$1.56 billion for MSCI Indonesia Index inclusion. The company’s free-float of roughly 32.85% also aligns with MSCI’s criteria, positioning BRMS as a strong candidate for the upcoming index review.

InvestingPro data further highlight strong profitability and growth health metrics, each scoring 4 out of 5, while relative valuation stands at 2 due to the company’s high earnings multiple. Analysts continue to expect sales growth for the current year and point to BRMS’s impressive gross margins as signs of sustained operational strength.