SBM - ITB

YP 66 B

CORPORATE VALUATION
AUGUST 31, 2022

(CASE STUDY)

FINANCIAL MANAGEMENT

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PT. Tumindo Mining Lestari (TML) is a Nickle Mining Company, with it’s
concession area located in Central Halmahera, North Maluku, Indonesia.

TML plan to build a Smelter Factory to further process it’s nickle ore and
producing Nickle Pig Iron (NPI), with the total project investment
amounting to USD 40.000.000,00 (Forty Millions US$)

The Financial Projection of the Smelter Project is attached, and the

Financing condition related to the project could be presented as follows :

- Maximum Loan from the Bank is US$ 32 Millions

- (Max Leverage = 4 X)
- Loan Interest Rate = 8,0 % per year
- Time Deposit Rate = 3 % per year
- Total Investment = US$ 40 Million

Problems:

After conducted the Capital Budgeting Analysis, and Financial

Feasibility Study on the Smelter Project owned by TML, and you
found out it is a very feasible one

A group of Chinese Investor “Called Wugang Corporation”, would

like to buy a majority shares of TML.

TML Shareholders ask you to render a financial services to them,

primarily to advise them on how much they should quote the price
for 60 % ownership of the TML to “Called Wugang Corporation”

Below are the essential Financial informations related to the

project and the acquisition plan matters :

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PT. TUMINDO MINING LESTARI (TML)
Financial Projection (In USD .000)
Deskripsi : I II III IV V

1 Sales 8,200 18,000 26,000 31,000 42,000

2 COGS 1,700 3,900 7,800 8,700 9,600

3 Gross Profit 6,500 14,100 18,200 22,300 32,400

4 Over Head 120 220 320 420 520

5 Depresiasi 2,000 2,000 2,000 2,000 2,000

6 EBIT 4,380 11,880 15,880 19,880 29,880

7 Interest Expense 3,600 3,600 3,600 3,600 3,600

8 EBT 780 8,280 12,280 16,280 26,280

9 TAX = 20 % 156 1,656 2,456 3,256 5.256

10 NET AFTER TAX 624 6,624 9,824 13,024 21,024

NOTE :

11 RETENTION FOR 124 624 824 1,024 1,024

GROWTH

Other Informations :
1. Growth of the compay Free Cash Flow after year V is = 5 %
2. Beta koefisien of the company = 2,0 X
3. SBI Rate for US$ = 5 % pa