PT Merdeka Copper Gold Tbk (MDKA) disbursed funds for its subsidiary, PT Andalan Bersama Investama (ABI), amounting to US$ 25 million. The funds are in the form of a debt agreement from the parent company and will be used for expansion purposes.
In a written statement, MDKA's management explained that the company and ABI had signed a loan agreement for the provision of these funds. The funds will be used by ABI for working capital, operational and other purposes as needed. "This transaction is included in the affiliate transaction because ABI is a company controlled by the company," explained management, in an official statement on the Indonesia Stock Exchange (IDX), Wednesday (13/4).
As for the first quarter of 2022, Merdeka Copper Gold has disbursed Rp 149.2 billion for the exploration of the Tujuh Bukit, Wetar and Pani mining areas until the first quarter of 2022.
The exploration of the Tujuh Bukit area is focused on power and gold resources. Most of the exploration costs were spent on this project, which was IDR 144.4 billion which consisted of tunnel maintenance, underground resource definition drilling, and test work related to the area.
The testing method used is drilling starting from underground and surface. This test was carried out by Merdeka Copper and PT Merdeka Mining Service. The area selected for the current drilling operation is in the Tujuh Bukit porphyry deposit which is the largest area containing high grade copper and gold.
Drilling was carried out in which 6 underground rigs carried out resource definition drilling with a total drilling depth of 10,105.7 meters and 2 surface rigs were completed with a total depth of 10,105.7 meters.
Then, the second project is located on Wetar Island, West Maluku. In this project, MDKA disbursed funds of Rp. 31.7 billion. The test method used is by mapping and creating a trajectory to continue the surface geophysical EM survey from the results of regional EM air targets.
Followed by inline drilling and resource extension and metallurgy in Partolang and Partolang Barat, initial drilling in the Partolang Bridge area to identify resources and targets in the Lerokis area determined by EM targets and prior rock sampling.
The third project is located in the Pani Project, Gorontalo, West Sulawesi. MDKA is currently preparing a drilling program and constructing drill bearings and laying water pipes. Subsequently, the datasets from the PETS IUP and GSM Contract of Work were combined and a revised and simplified geological code system was developed for drill core logging.
Stock Prospect
PT Merdeka Copper Gold Tbk (MDKA) changed its business direction to become a diversified mineral mining company. This action will balance the company's exposure from nickel, gold and copper mining.
Meanwhile, the increase in nickel and coal prices causes MDKA's cash cost to increase to US$ 14,400 in 2022. The company will acquire J&P Indonesia to work on nickel mining.
“With the desire to acquire a nickel mine, MDKA will transform into a diversified mineral miner. This is a positive sentiment, especially since nickel prices have increased significantly," wrote BRI analyst Danareksa Sekuritas Hasan Barakwan.
