PT Amman Mineral Internasional (AMMN) Q2 2024 earnings summary

Executive summary

• Achieved highest first-half year production in seven years, with copper and gold output up 76% and 189% year-over-year, respectively, driving net sales to $1,549 million and net income to $479 million.

• Net sales for H1 2024 reached $1,548.6 million, up from $580.5 million year-over-year, with net profit attributable to owners at $475.2 million.

• Maintained strong liquidity with cash and cash equivalents of $1,333 million as of June 30, 2024.

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

• Major expansion projects, including smelter and refinery, are progressing, with significant capitalized borrowing costs.

Financial highlights

• Copper sales volume rose 126% and gold sales volume 188% year-over-year in H1 2024.

• Gross profit rose to $851.9 million from $283.0 million year-over-year; operating profit increased to $785.2 million from $222.3 million.

• EBITDA up 186% to $959 million, with EBITDA and EBIT margins improved.

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

• Cash and cash equivalents increased 9% to $1,333 million; total assets grew to $10,275.3 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.

• Phase 8 ore mining to commence in 2025, extending through 2030.

• Ongoing construction of smelter and refinery projects is expected to enhance downstream value and future margins.

• Management continues to monitor regulatory changes and anticipates further implementing regulations for mining permits.