As a valued client and trusted partner in the mining industry, PT Acala Genesa Sumberdaya (ACALA) extends its highest appreciation to PT Masmindo Dwi Area (MDA) for the confidence entrusted to us in preparing the independent technical report and mineral asset valuation for the Awak Mas Gold Mining Project in Rante Bala, Luwu, South Sulawesi. We deeply value this collaboration and honor the opportunity to contribute to Masmindo’s strategic vision in advancing the mining sector. In early 2025, ACALA successfully delivered a comprehensive evaluation that has become a pivotal milestone in advancing our project. By doing so, they have helped us whittle down the complexities of the project and streamline our efforts toward future success.
Leveraging their expertise with Whittle software for pit shell optimization, ACALA identified economically viable mining zones, maximizing mineral resource extraction while minimizing waste—ultimately boosting operational efficiency by up to 15% compared to previous estimates. Furthermore, the integration of MineSched for production scheduling enabled the creation of a realistic and flexible Life-of-Mine Plan (LOMP), ensuring annual production flows align seamlessly with the 2.5 million tonnes per annum processing plant capacity and optimizing equipment fleet utilization.
ACALA has excelled in conducting a thorough strategic mine planning study using GEOVIA Whittle, which defines the long-term vision, economic viability, and optimal extraction strategy for the deposit. Whittle was instrumental in generating nested pit shells, evaluating multiple scenarios (including revenue factors, slope constraints, and economic parameters), and determining the ultimate pit limits and interim pushbacks that maximize Net Present Value (NPV) over the mine life. This strategic phase provided critical insights into pit design, investment options, and the overall mine strategy, ensuring alignment with financial goals while considering geological, operational, and geotechnical constraints.
Building on this foundation, ACALA successfully performed tactical mine planning with GEOVIA MineSched, translating the high-level strategic decisions into practical, time-bound production schedules. MineSched enabled detailed sequencing of mining activities, including bench-by-bench extraction, pushback development, waste management, and material flow, while honoring real-world constraints such as equipment availability, processing capacity, and short- to medium-term targets (from weeks to several years). This tactical approach ensured executable daily-to-annual plans that guide operations, maintain smooth material delivery to the plant, and support progressive rehabilitation.
Despite increases in several key cost components compared to the prior Definitive Feasibility Study (DFS)—such as a 40-50% rise in pre-production and land acquisition costs, along with a significant overall increase in initial capital expenditure (CAPEX) due to current condition adjustments, inflation, and expanded infrastructure scale—the new LOMP prepared by ACALA delivered improved and remained positive financial indicators. This was achieved through a different and more optimal mining strategy than previous studies, including more efficient pit stage scheduling, better waste management, and refined sequencing that enhanced the project’s overall value despite higher costs.
The results are truly impressive: the financial model shows a post-tax net present value (NPV) that remains positive at a 5% discount rate, a competitive internal rate of return (IRR), and a reasonable payback period. This data-driven approach not only strengthens the project’s economic viability but also reduces operational risks, paving the way for sustainable operations over an 11-year mine life.
ACALA has proven itself as a leading consultant in mining risk management, and we highly recommend their services to anyone seeking innovative and reliable solutions.”
— Jon Damanik, Director – Principal Mining Engineer / Key Professional (as noted in the report)
This independent valuation, dated February 28, 2025, provided a solid, unbiased foundation that supported subsequent project progress. Notably, it contributed to the project’s bankability, enabling PT Indika Energy Tbk (INDY)—MDA’s parent company—to secure a major multicurrency loan of from a syndicate of domestic banks (including Bank Mandiri, BNI, DBS Indonesia, and UOB Indonesia). This financing was used to repay prior debt and fund ongoing development and construction of the Awak Mas Gold Project.