PT Amman Mineral Internasional (AMMN) Q2 2024 earnings summary

Executive summary

• Achieved highest first-half copper and gold production in seven years, driven by high-grade Phase 7 ore extraction and operational efficiencies, with copper and gold output up 76% and 189% year-over-year, respectively.

• Net sales surged 167% year-over-year to $1,549 million, with EBITDA up 186% to $959 million and net income up 291% to $479 million.

• Smelter project reached mechanical completion in May 2024 and entered commissioning; first copper cathode production expected in Q4 2024.

• Secured a copper concentrate export permit valid until December 31, 2024, allowing up to 587,330 wet metric tons (or 534,000 dmt) of exports.

Financial highlights

• Copper production: 236 Mlbs (+76% YoY); gold production: 494,895 oz (+189% YoY); concentrate production: 444,143 dmt (+90% YoY).

• Copper and gold sales volumes increased 126% and 188% YoY, respectively.

• Average net selling price for copper was $4.46/lb and for gold $2,263/oz.

• Capex nearly doubled to $867 million, reflecting major expansion projects.

• Cash and cash equivalents at June 2024: $1,333 million; net debt rose 23% to $2,451 million.

Outlook and guidance

• Full-year 2024 production guidance remains unchanged: 456–465 Mlbs copper, 1,009,000 oz gold, and 833,000 dmt concentrate.

• First copper cathode production from the new smelter expected in Q4 2024.

• Total 2024 capex projected at $2,005 million, with major allocations to smelter, power, and plant expansion.