PT Merdeka Copper Gold Tbk reported strong operational progress for the quarter, specifically as of December 31, 2024, marked by high production growth, cost efficiency, and strategic advancements. Merdeka's gold and copper mining operations closed the year with strong results.

The Tujuh Bukit Gold Mine produced 35,824 ounces of gold during the quarter, with a cash cost of USD 975/oz, an all-in sustaining cost (AISC) of USD 1,260/oz, and an average sales price (ASP) of USD 2,672/oz.

During the same period, 29,056 ounces of gold were sold, generating unaudited revenue of USD 83.4 million, including USD 6 million from by-product silver revenue. The Wetar Copper-Pyrite Mine produced 3,419 tons of copper during the quarter, with a cash cost of USD 1.63/lb, AISC of USD 2.83/lb, and ASP of USD 4.18/lb. During this period, 3,101 tons of copper were sold, generating unaudited revenue of USD 28.6 million.

Gold production for FY2024 reached 115,867 ounces, in line with the guidance set, with a total cash cost of USD 1,017/oz, an all-in sustaining cost (AISC) of USD 1,337/oz, and an average sales price (ASP) of USD 2,371/oz.

Copper production for FY2024 reached 13,902 tons, which is within the guidance range of 13,500 to 14,000 tons. Additionally, the Wetar Copper-Pyrite Mine exceeded its cash cost and AISC guidance for FY2024, with a cash cost of USD 2.63/lb and an AISC of USD 3.58/lb.

For FY2025, Merdeka has set production guidance of between 100,000 and 110,000 ounces of gold and between 11,000 and 13,000 tons of copper.

PT Merdeka Battery Materials Tbk (IDX: MBMA) recorded strong performance in nickel operations, primarily driven by the SCM (Sulawesi Cahaya Mineral) Mine. In this quarter, the SCM Mine set a production record of 3.4 million wet metric tons (wmt) of limonite and 3.0 million wmt of saprolite, reflecting a year-over-year (YoY) increase of 110% and 108%, respectively.

During the same period, 2.01 million wet metric tons (wmt) of saprolite ore were delivered to MBMA's RKEF smelter, while 4.1 million wmt of limonite ore was sold to PT Huayue Nickel Cobalt, generating unaudited revenue of USD 73.2 million, with an average sales price (ASP) of USD 17.9/wmt.

MBMA's refining facilities produced a total of 30,716 tons of nickel products, including 18,823 tons of nickel in nickel pig iron (NPI) and 11,893 tons of nickel in high-grade nickel matte (HGNM), generating unaudited revenues of USD 223.8 million and USD 158.8 million, respectively, with ASPs of USD 11,887/ton and USD 13,229/ton.

Looking ahead, MBMA's sales guidance for FY2025 projects the delivery of 6.0 to 7.0 million wet metric tons (wmt) of saprolite ore and the sale of 12.5 to 15.0 million wmt of limonite ore. Additionally, nickel sales are expected to range between 80,000 and 87,000 tons of nickel in NPI (Nickel Pig Iron) and between 50,000 and 55,000 tons of nickel in HGNM (High-Grade Nickel Matte).

The profitability of the HGNM plant is being closely monitored. If the expected profit margins are not met, MBMA may consider temporarily halting production at the plant and resuming once market prices improve. Merdeka continues to advance its growing projects, with construction activities at the Pani Gold Project reaching 33% completion by the end of the quarter.

The project is scheduled to begin operations by the end of 2025, with the first gold production expected in early 2026. Meanwhile, the development of the Tujuh Bukit Copper Project continues, including surface resource drilling, exploration of potential open-pit mining targets near the surface, and technical studies.

Merdeka is actively optimizing this project and plans to release an updated pre-feasibility study in the second quarter of 2025. The study will include estimates of significantly larger ore reserves and a higher underground mining production rate using the sub-level caving (SLC) method, with a throughput of 6 million tons per annum (Mtpa).

Commissioning activities at the AIM (Acid, Iron, Metal) Plant are progressing well. The pyrite plant is fully operational, and the acid plant has been running since April 2024. In this quarter, the acid plant recorded its highest production, producing 164,985 tons of acid and 225,036 tons of steam. The construction of the chloride metal plant has been completed, and the commissioning process is currently underway.

The copper cathode plant is in the final stages of construction, with partial commissioning starting this quarter. In December 2024, PT ESG New Energy Material (PT ESG) successfully produced its first batch of MHP (Mixed Hydroxide Precipitate), marking a significant milestone in MBMA's strategy for downstream battery material production.

"Gold, copper, and nickel operations at Merdeka are in line with our production guidance, generating unaudited quarterly and FY2024 revenues of USD 575.8 million and USD 2.2 billion, respectively, reflecting a year-over-year (YoY) increase of 7% and 31%. We continue to develop world-class projects, including the Pani Gold Project, which will become one of the largest primary gold mines in Indonesia, as well as the Tujuh Bukit Copper Project, one of the largest untapped copper deposits in the world. At MBMA, the commissioning of two HPAL facilities will further strengthen our position as a leader in the battery and electric vehicle value chain," said Albert Saputro, President Director of PT Merdeka Copper Gold Tbk.

In terms of sustainability, Merdeka demonstrates its commitment to ESG (Environmental, Social, and Governance) principles by maintaining an A rating from MSCI (Morgan Stanley Capital International), making it the only Indonesian mining company to achieve an A rating in the MSCI Diversified Metals and Mining category.

Additionally, Merdeka has received various awards for its Sustainability Report and ongoing sustainability practices, including the Silver Rank in the Asia Sustainability Report Rating (ASRRAT) 2024, an A+ rating in the "Sustainability Report Study of Public Companies in Indonesia 2023" organized by FIHRRST in collaboration with the Belgian Government, and the Sapphire rank in the Sustainable Business Integrity Index 2024 organized by Transparency International Indonesia (TII) and Tempo Data Science.

"Merdeka's strategic investments are expected to significantly improve our performance, especially with the commencement of operations at the two MBMA HPAL facilities and the commissioning of the Pani Gold Project by the end of 2025. Our world-class assets and proven commitment to sustainability, as well as ESG principles, further strengthen Merdeka Group's position as a leading mining company in Indonesia," concluded Albert.