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BUMA International Group's 9M 2025 Results Highlight Strong Recovery

PT BUMA Internasional Grup Tbk, commonly known as BUMA International Group, has marked a significant rebound in its operational and financial performance for the nine-month period ending September 30, 2025 (9M25). As per the latest reports, the Group's performance exhibited consistent improvements, especially in the third quarter (3Q25), during which effective working hours were maximized, and cycle times shortened across crucial operational sites.

Continued Operational Improvement

The recovery momentum established in the second quarter (2Q25) has been extended into Q3, showcasing an impressive transformation in the company’s operational performance. Notably, overburden removal surged by 25% from 2Q to 3Q, indicating significantly enhanced operational conditions. Furthermore, equipment working hours saw an increase of 29% from January to September, bolstered by improved equipment readiness and utilization. In contrast, non-productive hours decreased by 53%, credited to favorable weather conditions leading to quicker post-rain recovery. Additionally, cycle times saw a 12% improvement due to well-coordinated operational planning, effectively minimizing dumping times and delays encountered in queuing.

Lower Operational Costs

These advancements in operational efficiency correlated with a notable decline in unit costs across various sectors. The cash costs per bank cubic meter (BCM) fell by 28% from Q1 to Q3. Specifically, manpower costs per BCM decreased by 45%, attributed to stricter shift management that optimized the operator-to-equipment ratio by 13%. Fuel costs per BCM were also down by 14%, driven by a reduction in fuel consumption, which dropped by 10% due to the cycle time improvement initiatives. Repair and maintenance costs per BCM followed suit, decreasing by 13% thanks to condition-based maintenance protocols that extended the average life of key components by 28%.

Growth in Production and Revenue

In 3Q25 alone, overburden reached 128 million bank cubic meters, while coal production totaled 22 million tonnes, marking respective gains of 18% and 12% quarter-on-quarter. These accomplishments were largely facilitated by extended effective working hours and reduced cycle times stemming from better post-rain recovery efforts, disciplined shift execution, and productive operational road conditions.

Revenue for 3Q25 saw a commendable rise to $400 million, reflecting an increase of 6% compared to the previous quarter. EBITDA escalated to $63 million, achieving a margin of 19%, compared to $50 million and a 16% margin in 2Q25. The net loss contracted to $1 million, a positive shift bolstered by improved EBITDA figures and fair value adjustments from the Group’s investment in 29Metals.

Future Outlook and Challenges

Iwan Fuad Salim, BUMA International Group’s Director, expressed optimism, stating that the third quarter results demonstrate a firmly established recovery. Enhanced effective working hours, tighter cost management, and shortened cycle times have collectively contributed to improved volumes and reduced unit costs, promising better-than-expected EBITDA outcomes despite ongoing sector challenges.

However, the year-to-date performance remains affected by the aftermath of significant weather disruptions and operational challenges faced in the first quarter of 2025 (1Q25), including safety-related incidents involving external contractors. This resulted in a 27-day suspension across two major operational sites. Year-to-date performance has also been influenced by planned ramp-downs across Indonesian sites and contract completions in Australia.

Cumulatively, overburden totaled 337 million bank cubic meters, while coal production reached 60 million tonnes, both reflecting declines of 20% and 8% year-over-year, respectively. Yearly revenue stood at $1.131 billion, down 16% year-over-year due chiefly to reduced mining contractor volumes following disruptions in Q1. Notably, revenue from the Group's mining ownership business, Atlantic Carbon Group, Inc., surged to $45 million from $12 million, underscoring a significant contribution for the year.

Financial Strategies Moving Forward

Capital expenditure (CAPEX) for the Group reached $149 million, representing a 12% increase compared to the previous year, with 54% aimed at sustaining fleet reliability while 46% targeted at fostering growth at key Indonesian sites.

Improvements were also observed in environmental and social performance indicators during this period, with a 17% decrease in Scope 1 and 2 emissions intensity compared to the previous quarter, facilitated by road enhancements and better handling of geological materials. The Group's community outreach through PT BISA Ruang Vokasi (BIRU) reached heightened engagement, with 30% of tracked graduates now employed, and 10% pursuing further education.

The Group's cautious and disciplined approach to managing liquidity throughout the year is noteworthy. Following the nine-month mark, BUMA executed significant financing options, including bond issuance worth $53.7 million to bolster local funding and led to early retirement of $212.25 million in Senior Notes, decreasing refinancing risks, and improving its debt maturity profile.

Conclusion

Established in 1990, PT BUMA Internasional Grup Tbk operates as a diversified mining company with a global presence in Indonesia, Australia, and the United States. With a strong emphasis on operational excellence and community impact, BUMA International Group is positioned well for future growth and stability, earning recognition as one of the top companies in the Southeast Asia region by revenue.