PT Merdeka Copper Gold (MDKA) Q1 2025 earnings summary

Executive summary

• Consolidated revenue for 1Q 2025 was $502.2 million, down 7% year-over-year, mainly due to lower HGNM and NPI contributions, partially offset by higher gold and limonite sales volumes and prices.

• EBITDA rose 57% year-over-year to $89 million, driven by improved gold, limonite, and NPI performance.

• Net profit reached $2.5 million, a 127% increase year-over-year, reflecting operational improvements and margin expansion.

• Interim consolidated financial statements for the three months ended 31 March 2025 were audited and received an unqualified opinion, confirming fair presentation in accordance with Indonesian Financial Accounting Standards.

• Key audit matters included impairment assessment of exploration and evaluation assets and mining properties, and revenue recognition, both addressed with robust audit procedures.

Financial highlights

• Gold production increased 6% year-over-year to 25,481 ounces, with sales up 38% to 36,796 ounces; average selling price rose to $2,757/oz.

• Copper production and sales declined 22% and 31% year-over-year, respectively, in line with the mining plan.

• MBMA revenue fell 18% year-over-year to $366 million, but EBITDA grew 17% to $31 million due to cost efficiencies.

• Net loss attributable to owners was $3.7 million, compared to a net loss of $15.2 million in Q1 2024.

• Total assets stood at $5.17 billion as of 31 March 2025, with total equity of $2.91 billion.

Outlook and guidance

• Pani Gold Project construction is 49% complete, with heap leach commissioning expected in late 2025 and first gold pour in 1Q 2026.

• Tujuh Bukit Copper Gold Project is being derisked, with a larger ore reserve and high-grade early production planned.

• HPAL processing expansion continues, with PT ESG Train B commissioning in 2Q 2025 and PT SLNC targeting 2H 2026.

• Management continues to monitor commodity price volatility, regulatory changes, and market conditions, with ongoing focus on operational efficiency and capital structure optimization.