MDKA - The growth trajectory for 2024 hinges on increased nickel production and the advancement of the AIM project

MDKA - The growth trajectory for 2024 hinges on increased nickel production and the advancement of the AIM project The gold operations reported a production of 29,507 ounces for the 4Q23 with a total cash cost of $1,016/oz and an average sales price of $1,931/oz. Full-year gold production reached 138,666 ounces at a total cash cost of $842/oz and an average sales price of $1,939/oz, with guidance for 2024 aiming at 100,000 to 120,000 ounces of gold at a total cash cost of $900 to $1,050/oz. Construction for the Pani Gold Project is ongoing, slated for commissioning in late 2025, following the completion of the feasibility study confirming its viability. In the copper and pyrite operations, production for the quarter was 3,397 tonnes of copper, with guidance for 2024 set at 14,000 to 16,000 tonnes of copper, along with advancements in pyrite ore delivery from the Wetar Copper-Pyrite Mine and ongoing drilling at the Tujuh Bukit Copper Project. Nickel operations, conducted by MBMA, achieved a production of 34,825 tonnes for the quarter, with a full-year production of 95,450 tonnes. The 2024 guidance entails selling 4.0 million wmt of saprolite ore and 11.0 million wmt of limonite ore, while aiming to produce 85,000 to 92,000 tonnes of nickel in NPI with an AISC ranging from $10,000 to $12,000 per tonne, alongside 50,000 to 55,000 tonnes of nickel in nickel matte at an AISC of $13,000 to $15,000 per tonne. (Source: Company) Comment: We are positive on the news, as the growth outlook is still in-line with our expectation. However, the oversupply condition in nickel market still become the biggest challenge for MDKA.