Moodys - Credit Opinion

CORPORATES CREDIT OPINION 1 April 2021 Update RATINGS Golden Energy And Resources Ltd Domicile Singapore Long Term Rating B1 Type LT Corporate Family Ratings Outlook Stable Please see the ratings section at the end of this report for more information. The ratings and outlook shown reflect information as of the publication date. Contacts Maisam Hasnain, CFA +65.6398.8325 AVP-Analyst Yu Sheng Tay +65.6311.2652 Associate Analyst Ian Lewis +65.6311.2676 Associate Managing Director Golden Energy And Resources Ltd Update following rating affirmation Summary Golden Energy And Resources Ltd' s (GEAR) B1 rating is supported by its 62.5% effective ownership of PT Golden Energy Mines Tbk (GEMS), an Indonesian thermal coal producer with growing production volumes and a long reserve life, supported by its integrated operations; the group’s track record of prudent capital management and performance through the coal price cycle; and increasing diversification from its exposure to metallurgical coal and gold mining in Australia. GEAR's rating is constrained by its dependence on cash dividends from subsidiaries, in particular from GEMS, to service its debt; execution risks related to its growth and diversification plans; and its exposure to the cyclical thermal coal sector, with reliance on one mine for most of its cash flow. Exhibit 1 GEAR's thermal coal production has increased considerably in recent years 0 5 10 15 20 25 30 35 40 2013 2014 2015 2016 2017 2018 2019 2020 2021 (F) 2022 (F) GEMS production volume (million tons) BIB mine KIM mine BSL mine Sources: Company and Moody’s Investors Service estimates