MDKA - 3Q24 activities report

MDKA - 3Q24 activities report • Merdeka Copper Gold (MDKA) reported unaudited 3Q24 revenue of USD574 mn (+4.2% qoq, -10.6% yoy), achieving 9M24 revenue of USD1.7 bn (+47% yoy), slightly under our expectations (74.1%). MDKA’s unaudited 3Q24 EBITDA was USD44 mn (+10% qoq, -58.9% yoy), resulting in 9M24 EBITDA of USD185 mn (+37% yoy). • MDKA's 3Q24 gold EBITDA reached USD35 mn (+88.2% qoq, -20.4% yoy), totaling USD80 mn for 9M24 (+18.6% yoy), supported by a higher ASP of USD2,566/oz and sales volume of 27,778 oz. Lower ore grades reduced sales volume, though AISC dropped to USD1,183/oz. Gold revenue for 3Q24 was USD71 mn (+26% qoq, -25.5% yoy), reaching USD191 mn for 9M24, meeting our expectations. Pani project construction was 19% complete by the quarter's end. • The nickel segments saw 9M24 revenue reach USD1.4 bn, aligning closely with expectations at 74.29%. ESG’s HPAL project is progressing, with 85% completion and commissioning anticipated by late 2024. • NPI: 3Q24 EBITDA was USD 2mn (-83.4% qoq, -95.4% yoy) due to lower sales volume (18,900 tonnes) and ASP (USD11,291/ton) alongside a higher AISC (USD 10,961/ton). • HGNM: Reported a negative 3Q24 EBITDA of -USD2 mn, impacted by lower ASP (USD 14,212/ton) and increased AISC (USD13,830/ton). • Limonite: 3Q24 revenue rose to USD55 mn (+17.6% qoq), with 9M24 reaching USD149 mn. SCM mine achieved record production (3.49 mn wmt) despite a lower ASP (USD15.9/wmt). • The company lowered its guidance, with limonite ore sales now expected at 9.5–10.5 mn wmt and nickel in NPI at 80,000–85,000 tonnes. (Source : Company, KBVS Research)