PT Bumi Resources (BUMI), a subsidiary of Bakrie Group, and one of Indonesia’s largest mining companies, is set to acquire Australian gold and copper mining firm Wolfram Limited in a diversification move worth Rp350 billion (US$21 million). 

The company has signed a preliminary agreement with Wolfram and aims to finalize the transaction pending approval from Australia’s Foreign Investment Review Board (FIRB).

BUMI’s official statement stipulates that the acquisition aligns with the company’s long-term strategy to diversify beyond coal and focus on assets that are already in production or nearing production. Wolfram’s assets are considered attractive due to their potential to start gold and copper output in the near term.

To fund the acquisition, BUMI is offering the First Phase of its 2025 Sustainable Bond Program with a total value matching the acquisition at Rp350 billion.

As detailed in the prospectus published on the Indonesia Stock Exchange (IDX) on Thursday, June 19, 2025, the acquisition is valued at AUS$33 million, equivalent to Rp350 billion, based on the Indonesian Central Bank (BI) exchange rate on May 9, 2025, of Rp10,593 per US$.

The bond issuance will be structured in three series:

● Series A: 370-day tenor;

● Series B: 3-year tenor;

● Series C: 5-year tenor.

Interest payments will be made quarterly, with the first payment scheduled for October 8, 2025. The final coupon and principal payments are set for July 18, 2026 (Series A), July 8, 2028 (Series B), and July 8, 2030 (Series C).

As of the end of 2024, BUMI’s total liabilities stood at US$1.3 billion or around Rp21 trillion, based on the JISDOR exchange rate of Rp16,157/US$. This includes US$530 million in short-term and US$768.5 million in long-term liabilities. By Q1 2025, total liabilities had decreased to US$1.16 billion, with short-term liabilities falling to US$450 million and long-term to US$715 million.

However, BUMI’s net profit for Q1 2025 declined significantly to US$17.9 million, from US$67.6 million in the same period last year. The drop in earnings was attributed to a decrease in revenue from US$1.44 billion to US$1.17 billion, following the decline in global coal prices.

Despite the weak quarterly performance, BUMI posted strong full-year results in 2024, with net income rising 45.5 percent year-on-year to US$170.9 million (Rp2.76 trillion). This increase was driven by a 14 percent reduction in cost of revenue, which fell to US$5.1 billion, even though total revenue dropped 13 percent to US$5.7 billion.

On the market, BUMI shares were the most actively traded by volume on Thursday morning, with 5.7 million shares changing hands, worth Rp70 billion by 09:41 WIB. The stock price rose 2.48 percent to Rp124, recovering from a 4.72 percent drop to Rp121 the previous day. Over the last three months, BUMI’s stock has surged nearly 40 percent, reflecting strong investor interest amid the company’s strategic shift.