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.

• Net sales for the nine months ended September 30, 2024 reached $2.495 billion, up 117% YoY, driven by higher copper and gold sales volumes and prices.

• Net profit attributable to owners was $720 million, a significant increase from $62.7 million in the prior year period.

• Gross profit margin improved to 52.1% from 43.6% YoY.

• Smelter commissioning is ongoing, with first copper cathode production expected in Q1 2025.

Financial highlights

• Copper sales: $1.14 billion (up from $697 million); gold sales: $1.35 billion (up from $454 million) YoY.

• EBITDA rose 147% YoY to $1,479 million (59% margin); net income jumped 958% YoY to $720 million (29% margin).

• Capex reached $1,392 million (+52% YoY); cash and equivalents at $1.27 billion; net debt at $2,697 million (+36% YoY).

• Operating profit rose to $1.20 billion from $411 million YoY.

• Earnings per share (EPS) rose to $0.00989 from $0.00093 YoY.

Outlook and guidance

• FY2024 production guidance revised due to a refined mining plan, considering smelter timeline and transition to Phase 8.

• FY2024 copper production guidance: 374 Mlbs; gold: 751,000 oz; concentrate: 715,000 dmt.

• Export permit for copper concentrate extended to December 31, 2024, supporting continued sales.

• Smelter construction is ongoing, with commissioning phase reached, aligning with regulatory requirements.

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