1、EQUITY:METALS&MININGBumi Resources Minerals BRMS.JK BRMS IJNomura Securities Malaysia Sdn Bhd11 July 2025Big undeveloped gold and copper assetsInitiate at Buy with a TP of IDR600Significant junior gold and copper asset play;highest gold grade among peersBumi Resources Minerals(BRMS)provides exposure

2、 to four gold projects totaling 12.4Moz of gold resources and 1.9Mt of copper resources,with significant potential for further resource growth,in our view.Its flagship Citra Palu Mineral(CPM)project boasts one of the industrys highest gold grades at 3.5 grams per tonne(g/t)following a recent resourc

3、e upgrade.Robust production and earnings growthWe expect BRMS to book a 57%earnings CAGR and a 32%CAGR gold production over 2025F-2028F,following:1)the commissioning of gold processing plants;and 2)the development of an underground mining.Since Salim Group(unlisted)came in as a majority through righ

4、t issues in 2021,BRMS has secured the financing to build four gold plants totaling 10,500tpd(ton per day)input capacity.We assume USD300mn capex for underground mine,with a grade of 4.9g/t,to be operational by end-2027F,boosting gold production to 170koz in 2028F.This transition to higher-grade ore

5、should reduce cash costs from USD1,400/oz in 2025F to USD1,300/oz in 2028F,enhancing margins.Valuation rerating,resource upside and more expansionIf gold prices stabilize at elevated levels,we believe this would result in a valuation rerating.As margin improvement materializes,we think gold peers va

6、luation will rerate from the current average of USD250/oz(Fig.8).Furthermore,we believe the ongoing exploration at Gorontalo Minerals(GM),Linge Mineral Resources(LMR),and Suma Heksa Sinergi(SHS)will provide additional resources and unlock further value,bringing down BRMSs EV/resources valuation(vs t