Bumi Resources Minerals (BRMS) Targets Production of 35,000 Ounces of Gold This Year

ISSUER – JAKARTA. PT Bumi Resources Minerals Tbk (BRMS) is targeting an increase in gold production this year. Through its subsidiary PT Citra Palu Minerals, BRMS's gold production could exceed 35,000 ounces this year.

This estimate is up from the realization of BRMS's gold production last year, which was at 20,000 ounces. Thus, this year's production will continue the trend of increasing BRMS's gold production since 2022.

Bumi Resources Minerals Director Herwin Hidayat said there are several factors supporting this production increase. First, the production from the second gold factory in Palu continues to increase and will reach full capacity in the first quarter of 2024.

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“Second, the third gold factory in Palu, which is planned to be completed and start operating in the second semester of 2024,’ Herwin explained to Kontan.co.id, Tuesday (13/2).

The subsidiary of PT Bumi Resources Tbk (BUMI) hopes that gold prices can remain above US$ 2,000 per troy ounce throughout this year. According to Herwin, gold is still considered a hedge asset in the current heated geopolitical conditions.

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In addition, the United States (US) Federal Reserve is not aggressive in raising its interest rates. Throughout the second semester of 2023 until now, The Fed's interest rate has been relatively stable in the range of 5.25%-5.5%. Stable interest rates will impact the increasing commodity prices, including gold.

BRMS's confidence is also supported by foreign institutions' projections such as JP Morgan and UBS, which predict that gold prices can remain above US$ 2,000 per troy ounce this year.