Company Name PT KALTIM PRIMA COAL Project Name

Address Sangatta, Kalimantan Timur Project Number Sheet 1

REV DATE BY APVD REV DATE BY APVD
ECONOMIC ANALYSIS

Form 2014-2016
Owner's Name Capital Cost Basis Year 2014
Plant Location Units ● English ● Metric
Case Description On Stream 8,000 hr/yr 333.33 day/yr
REVENUES AND PRODUCTION COSTS CAPITAL COSTS CONSTRUCTION SCHEDULE

$MM/yr $MM Year % FC % WC % FCOP % VCOP

Main product revenue 56987.0 ISBL Capital Cost 24.5 1 23.0 24.0 30.0 29.0
Byproduct revenue 135.0 OSBL Capital Cost 8.8 2 9.0 11.0 8.8 10.3
Raw materials cost 128.0 Engineering Costs 52.0 3 48.0 45.5 50.0 57.7
Utilities cost 43.0 Contingency 30.0
Consumables cost 8.0 Total Fixed Capital Cost 115.3
VCOP 44.0
Salary and overheads 128.6 Working Capital 200.0
Maintenance 105.0
Interest 270.0
Royalties 32.0
FCOP 535.6

ECONOMIC ASSUMPTIONS

Cost of equity 154 Debt ratio 5 Tax rate 70

Cost of debt 650 Depreciation method Ekuitas
Cost of capital 95 Depreciation period 62.5 years

CASH FLOW ANALYSIS

All figures in $MM unless indicated

Project year Cap Ex Revenue CCOP Gr. Profit Deprcn Taxbl Inc Tax Paid Cash Flow PV of CF NPV
1 7451.9 1652623.0 17344.0 1635279.0 0.0 1635279.0 0.0 1627827.1 16956.5 16956.5
2 3237.7 586966.1 5166.5 581799.6 0.0 581799.6 114469530.0 -113890968.1 -12358.0 4598.6
3 14634.4 3288149.9 29318.8 3258831.1 0.0 3258831.1 40725973.4 -37481776.7 -42.4 4556.2
4 0.0 0.0 0.0 0.0 0.0 0.0 228118177.0 -228118177.0 -2.7 4553.5
5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4553.5
6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4553.5
7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4553.5
8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4553.5
9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4553.5
10 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4553.5
11 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4553.5
12 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4553.5
13 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4553.5
14 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4553.5
15 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4553.5
16 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4553.5
17 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4553.5
18 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4553.5
19 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4553.5
20 -200.0 0.0 0.0 0.0 0.0 0.0 0.0 200.0 0.0 4553.5

ECONOMIC ANALYSIS

Average cash flow -13418704.5 $MM/yr NPV 10 years 4553.5 $MM IRR 10 years 6932.1%
Simple pay-back period -2.34970521E-05 yrs 15 years 4553.5 $MM 15 years 6932.1%
Return on investment (10 yrs) 173673.00% 20 years 4553.5 $MM 20 years 6932.1%
Return on investment (15 yrs) 115782.00% NPV to yr 1 16956.5 $MM

NOTES

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