PT Merdeka Copper Gold (MDKA) Q2 2024 earnings summary

Executive summary

• Revenue reached $1,094 million in 1H 2024, up 110% year-over-year, with EBITDA at $150 million, up 101% year-over-year, and net profit at $21 million, up 137% year-over-year.

• Interim consolidated financial statements for the six months ended 30 June 2024 were audited and received an unqualified opinion, confirming fair presentation in accordance with Indonesian Financial Accounting Standards.

• Key audit matters included accounting for business combinations and divestment of subsidiary interests, both addressed with detailed audit procedures.

• Significant growth driven by increased gold sales, full-year contributions from nickel products, and commencement of limonite ore sales.

Financial highlights

• Revenue for the six months ended 30 June 2024 was $1,093.8 million, up from $520.0 million in the same period last year.

• Gross profit rose 92% year-over-year, mainly due to NPI and HGNM sales.

• Operating profit rose to $62.2 million from $18.4 million year-over-year.

• Net profit for the period was $20.5 million, compared to a net loss of $54.9 million in the prior year.

• Net cash inflow from operations was $104 million, with $174 million net outflow for investing and $4 million net outflow for financing in 1H 2024.

Outlook and guidance

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

• Copper production guidance: 14,000–16,000 t at $3.25–4.00/lb cash cost.

• Nickel in NPI sales guidance revised to 80,000–85,000 t; HGNM production guidance at 50,000–55,000 t.

• Limonite ore sales revised to 9.5–10.5 million wmt, with production increases planned for 2025.

• The company continues to focus on growth through project development and strategic investments, with ongoing capital projects and expansion in mining and processing.