AMMN – Positive catalyst from copper prices, relaxation of export permits and smelter progress

AMMN – Positive catalyst from copper prices, relaxation of export permits and smelter progress Amman Minerals International (AMMN) is commencing the commissioning phase in line with construction that has planned through its subsidiary, Amman Mineral Industry, in collaboration with 2 contractor, China Non-ferrous Metal Industry's Foreign Engineering and Construction and Pengembangan Industri Logam. The smelter will process 900k tons of copper concentrate per year to produce 220k tons of copper cathode with LME grade A standards and 830k tons of sulfur acid per year. In addition, AMMN through its subsidiary, Amman Mineral Nusa Tenggara (AMNT), also received an extension of the relaxation of the metal mineral export permit for copper concentrate commodities until December 31, 2024. AMNT is also in the process of building a gas and steam power plant project that will be part of the smelter commissioning process. AMNT reported that one of the two 50 MW dual-fuel turbines inside the power plant has been tested in April 2024 and the other turbine will be tested in 2Q24. Furthermore, the other blocks in the power plant will be operated sequentially based on needs until 2025. Other positive AMMN catalysts are also in line with global copper and gold prices which are experiencing an upward trend. Spot gold is at USD2,330.92 per ounce and LME copper is at USD10,000 per ton as of June 3, 2024. That way, AMMN will continue the precious metal refining project, which until March 2024 has reached 75.8% (below the target of 83.5%). AMMN is also in the process of building a concentrator plant to increase its capacity by 85 mn tonnes of ore per annum, which will be used to process additional ore supplies from Phase 8 and the Elang mine. The expansion project is proceeding as planned and mechanical completion is scheduled for gradual completion from 1Q25. With all of these expansion plans, AMMN posted a 104% yoy (USD420 mn) increase in capex in 1Q24 consisting of sustaining capex of USD67 mn, smelters of USD123 mn, coal-fired power plants, LNG and transmission and distribution facilities of USD59 mn, expansion of concentrator plants of USD138 mn and infrastructure of USD32 mn. AMMN has allocated USD2 bn in capex this year, one of which comes from IPO proceeds. (Source: Bisnis Indonesia)