PT Merdeka Copper Gold Tbk (MDKA) is aiming to improve operational performance in 2024 in line with the trend of increasing commodity prices.

General Manager Communications of PT Merdeka Copper Gold Tbk Tom Malik said that the Tujuh Bukit Gold Mine Project targets production in the range of 100,000 ounces to 120,000 ounces. Meanwhile, Wetar Copper Mine production is targeted at 14,000 tons to 16,000 tons.

"The increase in prices of metal commodities such as copper, gold and nickel due to various global events will certainly have a positive influence on the performance of the Merdeka Group. As a mining company, we are price takers because the price of metal commodities depends on global supply-demand," said Tom to Kontan, Wednesday ( 3/7).

Tom explained that the price of gold is currently at USD 2,300 per troy ounce and is predicted to increase this year. Meanwhile, the price of copper, which is now USD 9,400 per ton, is also predicted to increase.

Optimism for growth in operational performance, especially in the copper sector, is also supported by a new source of income, namely pyrite ore which is sent to the AIM (Acid Iron Metal) Project belonging to PT Merdeka Tsingsan Indonesia, which is a subsidiary of PT Merdeka Battery Materials Tbk (MBMA) in Morowali.

"The Merdeka Group continuously optimizes mining and efficiency of production costs to increase margins," explained Tom.

Meanwhile, development of the Pani Gold Project is said to be running smoothly with a production target at the end of 2025. So far, MDKA has invested more than USD 114 million since 2022. MDKA is targeting additional investment of USD 200 million for phase 1 production levels.

Tom continued, the development of the Tujuh Bukit Copper Project, which is an underground mine under the Tujuh Bukit Gold Mine, is also running smoothly.

The total investment that MDKA has disbursed has reached USD 185 million since the start of development in 2018.

"We are currently carrying out various studies and exploration to determine the mineral content and optimize the project value with a production target at the end of 2026," continued Tom.

Throughout the first quarter of 2024, MDKA posted revenue of USD 541.05 million or grew 152.57% year on year (yoy) compared to the first quarter of 2023 which amounted to USD 214.21 million.

Meanwhile, in terms of the bottom line, MDKA recorded a net loss of USD 15.22 million in the first quarter of 2024. Previously, in the first quarter of 2023 MDKA was able to record a net profit of USD 3.11 million.