PT Merdeka Copper Gold (MDKA) Q1 2024 earnings summary

Executive summary

• Group revenue reached $541 million in Q1 2024, up 152.6% year-over-year, with EBITDA at $57 million, a 29.5% increase year-over-year.

• Net profit for Q1 2024 was $30 million, compared to a net loss of $3 million in Q1 2023.

• Interim consolidated financial statements for the three months ended 31 March 2024 were audited and received an unqualified opinion, confirming fair presentation in accordance with Indonesian Financial Accounting Standards.

• Major project milestones include completion of the Pani feasibility study and significant progress on PT ESG and AIM plant construction.

• Key audit matter identified was the accounting for assets and liabilities of disposal group classified as held for sale, specifically related to PT Merdeka Industri Anantha (MIA), due to significant management judgment in fair value estimation.

Financial highlights

• Revenue increased by $327 million, mainly due to higher nickel production volumes.

• Cost of revenue rose in line with increased NPI production and new asset acquisitions.

• Cash flow from operations was $34 million; capital expenditures totaled $133 million.

• Cash and cash equivalents stood at $424 million, with net debt at $1,045 million as of Q1 2024.

Outlook and guidance

• 2024 gold production guidance: 100,000–120,000 oz at $900–1,050/oz cash cost.

• 2024 copper production guidance: 14,000–16,000 tonnes at $3.25–4.00/lb cash cost.

• 2024 NPI and nickel matte production guidance: 85,000–92,000 tonnes and 50,000–55,000 tonnes, respectively.

• PT ESG project commissioning expected in Q4 2024, with initial MHP production to follow.