Delta Dunia Group Strengthens Australian Footprint with A$62 Million Investment in 29Metals

PT Delta Dunia Makmur Tbk (Delta Dunia Group, IDX: DOID), through its indirect subsidiary Bukit Makmur Mandiri Utama Pte. Ltd. (BUMA Singapore), has entered into an agreement with 29Metals Limited (29Metals, ASX: 29M) to subscribe for 229,902,537 newly issued shares, at A$0.27 per share, for a total of A$62 million. This forms part of 29Metals' A$180 million equity raise and grants the Group a significant minority interest of 19.9% in 29Metals. As part of the placement, the Group will have the right to nominate one Non-Executive Director to the Board of 29Metals, with the option to nominate a second Non-Executive Director if its stake exceeds 20% of the total shares outstanding.

Ronald Sutardja, President Director of Delta Dunia Group, stated: “The strategic transaction reinforces our commitment to diversification and growth into future-facing commodities and builds on our recent significant acquisitions; entering a binding agreement to acquire a 51% interest in the Dawson Complex in Australia and acquiring Atlantic Carbon Group Inc., the second largest ultra-high-grade anthracite producers in the USA. This transaction represents a tangible step in Delta Dunia Group’s strategic long-term goal to support the transition to a low-carbon economy, while diversifying our portfolio to align with a more sustainable future.”

This transaction represents a significant step in the Group’s strategic expansion into the future-facing commodities sector, offering valuable exposure to copper and zinc. At an attractive price relative to recent transactions and trading peers in the copper sector, this acquisition provides the Group with an immediate and high-value opportunity.

Long-Life, High-Quality Base, and Precious Metals Assets with Strong Organic Growth and Exploration Upside

29Metals operates two high-quality, long-life assets: the Golden Grove mine in Western Australia and the Capricorn Copper mine in Queensland. These assets offer the Group access to reliable, high-grade copper production in low-risk jurisdictions, with substantial growth potential. Golden Grove presents exploration upside, while Capricorn Copper is poised for a planned production restart and resource expansion. As of December 2023, the company’s proven and probable reserves support a mine life of over 10 years. In the 12 months leading to September 2024, 29Metals produced 26kt of copper and 60kt of zinc.

The proceeds from the equity raise will fully fund the development of Gossan Valley to first ore, allowing the company to optimize its mine plan and extend the life of the Golden Grove mine. This development will increase production flexibility by adding an additional mining front and providing a higher-grade ore source to replace the declining output from Scuddles.

The Group intends to finance this acquisition using its cash reserves and a syndicated bank facility, ensuring continued financial flexibility for future strategic.