Bumi Resources Targets Full Loyal Metals Acquisition by Mid-August

PT Bumi Resources Tbk (BUMI) is targeting the completion of its planned acquisition of Australian mining company Loyal Metals Ltd by mid-August 2026, although the deal remains in its preliminary stage pending regulatory and shareholder approvals.

The company said it has signed a Scheme Implementation Deed (SID) with Loyal Metals as the initial agreement to begin the acquisition process. However, the transaction has not yet become legally effective, as several conditions precedent still need to be fulfilled under Australian law.

BUMI Director RA Sri Dharmayanti said the acquisition remains subject to approval from Loyal Metals' shareholders, court approval in Australia, and the completion of all applicable legal requirements. She emphasized that no transfer of funds or shares has taken place.

"There has been no final binding transaction regarding the transfer of Loyal Metals' share ownership to the company," Sri wrote in a disclosure to the Indonesia Stock Exchange on Tuesday, August 4, 2026.

BUMI plans to acquire 100% of Loyal Metals' outstanding shares, under a court-approved scheme by Australia’s Corporation Act 2001. Loyal shareholders are expected to receive A$0.45 per share, valuing the company at approximately A$79.11 million. The offer represents a 40.6% premium over Loyal Metals' closing share price on April 24, 2026, and is also significantly above its recent five-day and 10-day volume-weighted average prices.

Loyal Metals' management said the transaction offers shareholders full cash consideration at an attractive premium while reducing development risks associated with the company's gold and copper mining projects in Australia and Canada.

Earnings Strengthen as Diversification Continues

BUMI also reported stronger financial and operational performance in the first half of 2026, supporting its strategy to diversify beyond coal through overseas mineral assets.

Revenue rose 27.9% year-on-year to USD 866.8 million (approximately IDR 14.30 trillion) from USD 677.9 million (around IDR 11.19 trillion) a year earlier. Operating profit increased 50.3% to USD 83.1 million (around IDR 1.37 trillion), while net profit attributable to shareholders surged 188.4% to USD 58.9 million (approximately IDR 972 billion).

Coal production climbed 7.1% to 38.5 million tons, while sales increased 11.7% to 38.8 million tons, reflecting resilient demand that reduced coal inventories to 1.7 million tons from 2.7 million tons a year earlier.

The company's average free-on-board (FOB) selling price improved to USD 62.9 per ton (around Rp1.04 million) from USD 61.3 per ton (around  IDR 1.01 million). BUMI attributed its stronger margins to higher production and sales volumes, firmer selling prices, and improved mining efficiency, while maintaining its full-year production cost target of USD 42–44 per ton (approximately IDR 693,000–IDR 726,000).

The company said it will continue pursuing its diversification strategy, including integrating newly acquired mining assets in Australia once the Loyal Metals transaction is completed.

Source: https://indonesiabusinesspost.com/7082/corporate-affairs/bumi-resources-targets-full-loyal-metals-acquisition-by-mid-august

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