Gold Prices Surge, MDKA Profit Margin Jumps 130%

PT Merdeka Copper Gold Tbk (MDKA) recorded an increase in operational efficiency in costs, which collectively strengthened profitability margins and the long-term business foundation. Through its subsidiary, PT Merdeka Gold Resources Tbk (EMAS), it began producing gold from the Pani Gold Mine at 1,818 ounces in the first quarter of 2026. Of that amount, 516 ounces were sold in March 2026. Meanwhile, this year EMAS targets sales of 100,000 - 115,000 ounces throughout 2026. In line with its growth strategy, EMAS has also submitted Form A1 to the Hong Kong Stock Exchange to expand access to global funding. Next, in the nickel sector, through its subsidiary PT Merdeka Battery Materials Tbk (MBMA), it also recorded significant growth through sharply increased ore production at its mine, with saprolite up 72% and limonite up 195% year-on-year. Merdeka targets the entire saprolite supply from the nickel mine in Konawe to support the RKEF (Rotary Kiln Electric Furnace) smelter, thereby increasing efficiency and margins. In addition, construction of the HPAL (High-Pressure Acid Leach) facility of PT SLNC has reached 95%, while the AIM plant recorded commissioning output of sulphuric acid at 120,911 tonnes in the first quarter of 2026, strengthening the company’s nickel downstream value chain. On the other hand, it continues to enhance growth in the Tujuh Bukit Copper Project as a pillar of long-term growth. In the first quarter of 2026, this project entered the finalisation stage of feasibility studies towards execution readiness, with ongoing metallurgical testing and mine design optimisation to improve recovery and cost efficiency as well as strengthen its economic value. From a profitability perspective, the company recorded a significant increase. The cash cost of the Tujuh Bukit Gold Mine fell 64% compared to the end of 2025 to US$685/oz, while the margin increased 130% from the end of 2025 to US$4,156/oz, supported by strong gold prices. As for the nickel business, the NPI (Nickel Pig Iron) margin increased 76% from the fourth quarter of last year to US$3,982/ton. President Director of PT Merdeka Copper Gold Tbk, Albert Saputro, stated that the company will maintain its MSCI ESG “A” rating for the third consecutive year, strengthening investor confidence. “We are building an integrated growth platform, with gold as the cash generator and nickel as the engine for the future. Achievements in Pani and nickel performance affirm the Company’s strategic role in the global energy supply chain,” he said in a written statement on Friday (1/5/2026). According to him, the combination of operational achievements and strengthened financial structure positions Merdeka strongly to continue sustainable growth as a diversified mining company with an integrated value chain.