PT Merdeka Copper Gold Tbk (MDKA) estimates that the current year’s gold production will be depleted by 100,000-120,000 ounces as the mining activities will take place deeper into the pit.

After the General Shareholders Meeting last week, Simon James Milroy, Vice Director of Merdeka Copper Gold, explained that the realisation of MDKA’s gold production last year hit 125,000 ounces of gold, accompanied with all-in sustaining cost (AISC) of USD 860 per ounce of gold. The realisation of production level last year actually surpassed the installed production rate of 100,000-120,000 ounces of gold, predicting the AISC to arrive between USD 825-900 per ounce of gold. However, this year’s AISC is set to USD 1,000-1,100 per ounce of gold.

In Q1 2022, MDKA managed to produce 33,96 ounces of gold. This realisation was reportedly 104.8% higher than the production in the same period in 2021 of 16,585 ounces. As of March 31, 2022, approximately 49,217 ounces of gold has been hedged with an average price of USD 1,864 per ounce from April 2022 to June 2023.

Meanwhile, MDKA’s other mining produce in Wetar Copper mine is expected to generate 18,000 to 22,000 tons of copper with an AISC of USD 3.10 to 3.40 per pounds of copper. Accoring to Milroy, said target is upgraded from the realisation of last year’s production.

Source: https://www.idnfinancials.com/news/43324/deeper-pit-mdkas-production-target-readjusted