PT Amman Mineral Internasional (AMMN) Q1 2025 earnings summary

Executive summary

• Q1 2025 was challenging due to deliberate smelter commissioning and the transition to Phase 8, resulting in lower production and sales volumes, with no sales volume recorded as focus remained on safety during smelter ramp-up; first copper cathodes were produced in late March 2025.

• Net sales were $2,124 thousand, reflecting only mark-to-market adjustments from prior shipments; EBITDA was negative $42 million and net loss was $137,630 thousand.

• Secured $1.5 billion in funding commitments to support transition to a fully integrated producer.

• Interim consolidated financial statements cover the three months ended March 31, 2025 and 2024, with March 31, 2025 unaudited and December 31, 2024 audited.

• The Board of Directors confirms responsibility for the accuracy and completeness of the financial statements, prepared in accordance with Indonesian Financial Accounting Standards.

Financial highlights

• Copper production was 37 Mlbs (down 62% year-over-year); gold production was 32,340 oz (down 81%).

• Concentrate production was 79,741 dmt (down 55%).

• Net sales dropped to $2,124 thousand from $601,550 thousand in Q1 2024.

• EBITDA was negative $42 million versus $326 million positive in Q1 2024.

• Net loss was $137,630 thousand compared to net income of $130,729 thousand in Q1 2024.

• Capex was $360 million, down 14% year-over-year.

• Cash and cash equivalents increased to $868,016 thousand; debt rose to $5,124 million.

Outlook and guidance

• No changes to 2025 guidance; a challenging year is expected as the company transitions to Phase 8 and completes smelter commissioning.

• Lower metal production anticipated in 2025 due to processing of low-grade stockpiles and outer halo ore from Phase 8.

• Sales expected to increase as copper cathode production ramps up in Q2 2025.

• The company is transitioning from copper concentrate exports to selling finished products (copper cathode, gold, silver) as smelter and refinery projects near completion.

• Regulatory changes extend copper concentrate export permits until December 31, 2024, after which sales will shift to refined products.