Medco Group's PT Amman Mineral Internasional Tbk (AMMN) is targeting to produce up to 1 million ounces of gold by 2024, doubling its production from 2023’s 463,000 ounces.

President Director of Amman Mineral Internasional Alexander Ramlie said AMMN's production target is driven by fresh high-grade ore from phase 7 that will be mined and processed. In 2024, AMMN expects to produce 833,000 dry metric tons of concentrate.

"The concentrate is projected to contain 456 million pounds of copper and slightly more than 1 million ounces of gold," Alexander said on Wednesday (27/3/2024).

In more detail, AMMN targets 1,009-kilo ounces of gold production and 456 million pounds of copper production throughout 2024. Meanwhile, the Adjusted C1 cost was recorded at USD 0.35 per pound.

During 2023, AMMN produced 312 million pounds of copper, a 33% decrease from 2022 production of 464 million pounds. Sales decreased by 33%, down to 304 million pounds from 451 million pounds in the previous year.

Meanwhile, AMMN's gold production reached 463 kilo ounces, a 37% decrease from 2022 production of 731 kilo ounces. The gold sales also decreased by 35%, to 455 kilo ounces from 703 kilo ounces in the previous year.

Despite the decline in copper and gold sales, the selling prices rose by 6% and 12% respectively. Copper selling price reached USD 3.78 per pound, up from USD 3.56 per pound in 2022. Meanwhile, the selling price of gold reached USD 1,948 per ounce, up from USD 1,737 per ounce in the previous year.

AMMN Financial Performance

Based on the financial report as of December 2023, Amman Mineral Internasional posted a decline in sales to USD 2.03 billion, equivalent to IDR 31.27 trillion (estimated exchange rate of IDR 15,384.61 per US dollar). The achievement fell 28.15% compared to the same period of the previous year, USD 2.83 billion.  

AMMN's sales in 2023 were mainly generated by its copper sales of USD 1.14 billion, equivalent to IDR 17.65 trillion, and gold sales of USD 885.45 million, equivalent to IDR 13.62 trillion. Each sale decreased from the realization in 2022 of USD 1.60 billion and USD 1.22 billion.

AMMN's management explained that the net sales fell due to the extension of the export license delay from April 1 to July 23, 2023. After obtaining an export permit on July 24, 2023, AMMN accelerated concentrate shipments in Q3/2023 to catch up on lost sales.

Alexander Ramlie said the company faced various challenges in 2023, such as bad weather, regulatory changes that negatively impacted the company, and increased compliance costs. Heavy rainfall forced AMMN to produce concentrate from ore stockpiles in the first seven months of 2023, which has a lower grade than fresh ore.

"The extreme weather had a significant negative impact on AMMN's net profit," he explained in a press release on Wednesday (27/3/2024).

In Q4/2023, AMMN recorded its strongest performance of the year, with sales growth of 55% and EBITDA of 60% compared to the previous quarter. By the end of 2023, AMMN sold 312 million pounds of copper, down 33% from the previous year's 464 million tons. Juja gold sales fell to 455,000 troy ounces, a 37% correction from 731,000 troy ounces in 2022.

Then, AMMN booked a cost of goods sold of USD 1.13 billion in 2023. The expense decreased compared to the previous year by USD 1.19 billion.  

AMMN's net profit attributable to owners of the parent entity was recorded at USD 252.14 million or equivalent to IDR 3.87 trillion. AMMN's net profit fell 76.94% compared to the previous year of USD 1.09 billion.  

AMMN's liabilities were recorded at USD 4.46 billion, an increase compared to the end of 2022 of USD 2.88 billion. The details of short-term liabilities were recorded at USD 774.12 million, and long-term liabilities were recorded at USD 3.68 billion.  

Meanwhile, its equity stood at USD 4.63 billion, up from USD 3.60 billion at the end of 2022. AMMN's assets were recorded at USD 9.09 billion, drastically higher than 2022's USD 6.49 billion.

Image source: Bisnis.com / Ammanmineral
Source: https://market.bisnis.com/read/20240331/192/1753990/amman-ammn-targetkan-produksi-emas-1-juta-ons-pada-2024