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Investing.com - UBS initiated coverage on Bumi Resources Minerals (BRMS:IJ) with a Buy rating and a price target of IDR590.00, citing strong growth potential for the Indonesian gold miner.
UBS highlighted BRMS as a unique pure gold operator with regional-high gold grade assets and margins, a proven execution track record, and a large undeveloped copper asset amid Indonesia’s pure gold/copper miner scarcity.
The bank forecasts BRMS’s net profit will more than quadruple to US$223 million by 2028, representing a 66% three-year compound annual growth rate, driven by rising gold grade, falling cost per tonne, and more than doubling of gold sales to 191,000 ounces from an expected 73,000 ounces in 2025.
UBS’s analysis suggests investors currently assign only a 33% probability of success for BRMS’s copper/gold project monetization, underestimating the company’s ability to ramp up these assets despite progress with higher gold capacity and ongoing, fully funded copper drilling.
The firm noted that BRMS’s 2028-29 price-to-earnings ratio, when its assets are expected to ramp up, is below those of global peers.
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