JAKARTA – PT Bumi Resources Minerals Tbk (BRMS) is accelerating the development of its underground mine in Poboya, with planned funding of USD 200–300 million.

This aligns with the momentum of rising global gold prices, projected to grow by 19.3% year-on-year (yoy) in 2025.

Benyamin Mikael, an analyst at UOB Kay Hian, believes this expansion could serve as a key catalyst for BRMS’s performance and valuation. "The underground mine development will significantly increase production and potentially boost the company’s valuation," Benyamin noted in his research report.

He also highlighted that investors may not yet fully account for BRMS’s copper reserves in Gorontalo, which could serve as a new growth driver. "These copper reserves could become a fresh growth contributor," he said.

As reported earlier by IDNFinancials.com, BRMS's underground mine in Poboya is scheduled to begin operations by 2027. Once operational, BRMS is optimistic that gold production could reach 200,000 ounces by 2029, bolstered by high-grade gold from the underground mining project.

However, Benyamin cautioned that BRMS still faces risks that need to be monitored, including gold price fluctuations and the timeliness and readiness of the underground mine’s operations.

"The success of project execution will determine how well BRMS can capitalise on this opportunity," Benyamin added. (KR/ZH)