PT Amman Mineral Internasional (AMMN) Q3 2024 earnings summary

Executive summary

• Achieved record copper, gold, and concentrate production for the nine-month period, with copper up 68% YoY and gold up 173% YoY, driven by high-grade ore from Phase 7, since acquisition in 2016.

• Net sales surged 117% YoY to $2,495 million, EBITDA rose 147% YoY to $1,479 million (59% margin), and net income jumped 958% YoY to $720 million (29% margin).

• Smelter and precious metals refinery achieved mechanical completion in May 2024; commissioning ongoing, with first copper cathode production expected in Q1 2025.

Financial highlights

• Copper production up 68% YoY to 335 million lbs; gold up 173% YoY to 707,930 oz; concentrate up 85% YoY to 637,106 dmt.

• Net sales: $2,495 million (+117% YoY); EBITDA: $1,479 million (+147% YoY, 59% margin); Net income: $720 million (+958% YoY, 29% margin).

• Gold sales contributed 54% of revenue, up from 39% in 9M 2023; realized gold price increased 21% to $2,361/oz; copper price up 6% to $4.20/lb.

• Capex reached $1,392 million (+52% YoY); cash and equivalents at $1,266 million; net debt at $2,697 million.

• Adjusted C1 cash cost: $2.84/lb sold (up from $0.32/lb YoY, reflecting higher deferred stripping and inventory movements).

Outlook and guidance

• FY2024 production guidance: 374 million lbs copper, 751,000 oz gold, 715,000 dmt concentrate; revised due to refined mining plan and smelter timeline.

• 2025 guidance: 228 million lbs copper, 90,000 oz gold, 430,000 dmt concentrate.

• First copper cathode production expected in Q1 2025; focus on enhancing productivity and cost control.

• Strategic concentrate inventory build-up to support smelter ramp-up.

• Long-term copper demand expected to rise, but short-term market faces supply disruptions and macroeconomic risks.