Amman Mineral (AMMN) Profits Plunge 60%, What's Going On?
Jakarta, CNBC Indonesia — The gold and copper mining issuer PT Amman Mineral Internasional Tbk (AMMN) recorded a significant decline in net profit in 2025. AMMN posted a net profit of US$258 million, down 60% year-on-year from US$642 million the previous year.
According to the company’s press release, the volume of material mined in 2025 fell 9% year-on-year. AMMN stated that this decline was reasonable, given that 2024 marked the peak mining volume, one of the highest throughout the life of the Batu Hijau mine.
Mining activities throughout the year focused on stripping overburden rock layers and mining the outer portion of Phase 8 ore, characterised by low- to medium-grade ore.
The volume of fresh ore mined increased 60% year-on-year, but the ore grade was lower than the previous year. As a result, longer haul distances, higher fuel prices, and lower volumes of material mined led to a 10% year-on-year increase in unit mining costs in 2025, from US$2.24/t to US$2.54/t.
Concentrate production reached 446,563 dry metric tonnes in 2025, down 41% year-on-year. Copper and gold production were 209 million pounds and 102,758 ounces, respectively, reflecting annual declines of 47% and 87%.
Nevertheless, full-year concentrate production exceeded guidance by 4%, gold production by 14%, while copper production was 8% below target.
The issuer, affiliated with the Salim Group, stated that starting in 2025, the company is only permitted to sell finished metal products, such as copper cathodes and refined gold, not in concentrate form as in 2024. However, AMMN obtained temporary approval to export concentrate on 31 October 2025, valid for six months.
This transition resulted in lower net sales of US$1,847 million in 2025, compared to approximately US$2,664 million in the same period the previous year.
These sales comprised US$806 million from copper cathodes, production of which began in Q2; US$454 million from refined gold, with first production starting in Q3; and US$587 million from concentrate sold in Q4.
“The 2025 financial performance reflects the impact of the concentrate export ban at the beginning of the year and the smelter ramp-up process. Nevertheless, we recorded net sales of US$1,847 million, with performance strengthening in the second half, where Q4 contributed around 70% of full-year sales as copper smelter and Precious Metal Refinery (PMR) operations stabilised,” said Arief Sidarto, President Director of AMMN, in his official statement on Thursday (26/3/2026).
He described 2025 as a transitional year, including the start of Phase 8 mining and smelter ramp-up challenges that temporarily pressured margins.
Entering 2026, Arief said AMMN’s primary priority is to ensure stable and sustainable smelter performance.