MDKA – Business growth on higher gold and copper prices

MDKA – Business growth on higher gold and copper prices Merdeka Copper Gold (MDKA) has an improved performance due to higher gold prices at USD2,621.88 per troy ounce (+25% ytd) as of September 20, 2024. The higher price was mainly due to the Fed's dovish stance that lowered the USD. Moreover, the Goldman Sachs Research expects gold prices to reach $2,700 per troy ounce next year in line with the Fed's interest rate cut plans and central bank gold purchases. As for MDKA's revenue contributor; 32% from gold, 20% from copper and 48% from nickel. MDKA targets the production of the Seven Hills gold mine to reach 100-200k ounces, which the company has invested more than USD185 mn in the under mine mining concession, since 2018. MDKA also increased the ceiling of the loan facility to its subsidiary, Pani Bersama Jaya, to USD260 mn for the development of phase I of the Pani gold project in Gorontalo, Sulawesi. This prospect is also supported by the approval of the RKAB for the Seven Bukit Oxide and Wetar units, which will reach their maximum capacity. Copper prices that have risen since the beginning of the year are expected to drive up ASP. Note that, MDKA posted revenue of USD541.05 mn (+152.57% yoy) but booked a net loss of USD15.22 mn in 1Q24. (Source : Bisnis Indonesia)