PT Merdeka Copper Gold (MDKA) Q2 2025 earnings summary

Executive summary

• Consolidated revenue for 1H 2025 was $855 million, down 22% YoY, mainly due to lower HGNM and NPI contributions, partially offset by higher gold and limonite sales.

• EBITDA rose 18% YoY to $176 million, driven by higher sales volumes and improved average selling prices, especially in gold and limonite.

• Net profit declined 60% YoY to $8 million, impacted by higher finance costs and tax expenses.

• Interim consolidated financial statements for the six months ended 30 June 2025 were audited and received an unqualified opinion, confirming fair presentation in accordance with Indonesian Financial Accounting Standards.

• Key audit matter identified was the assessment of impairment indications for exploration and evaluation assets and mining properties, with no impairment indicators found as of 30 June 2025.

Financial highlights

• Gold production increased to 50,624 oz in 1H 2025, with sales of 59,535 oz at an ASP of $2,929/oz and a margin of 62%.

• NPI production and sales dropped 23% and 22% YoY, respectively, due to scheduled RKEF maintenance; HGNM production and sales fell 63% and 60% YoY.

• MBMA revenue was $628 million (down 32% YoY), EBITDA $77 million (down 8% YoY), with NPI cash costs declining to $9,884/t.

• Group gross profit margin was 8.1% (down from 12.4% YoY); EBITDA margin improved to 20.6%.

Outlook and guidance

• Full-year 2025 production guidance: gold 100,000–110,000 oz, copper 10,000–12,000 t, NPI 70,000–80,000 t, saprolite ore 6.0–7.0m wmt, limonite ore 12.5–15.0m wmt.

• Cash cost guidance for 2025: saprolite below $25/wmt, limonite below $13/wmt, NPI below $11,000/t, gold $1,100–1,250/oz, copper $3.00–3.20/lb.

• HGNM operations to restart in October 2025 after securing higher-priced offtake.