MDKA's Revenue for 2025 Declines 15%, Here Are the Reasons

Jakarta, CNBC Indonesia - PT Merdeka Copper Gold Tbk (MDKA) recorded consolidated revenue for the full year 2025 at US$1.9 billion, a 15% decrease compared to 2024. The decline was caused by reduced contributions due to a temporary shift in the company’s focus to NPI operations, lower copper production, and maintenance activities at the NPI facilities.

Meanwhile, the Merdeka Group recorded an EBITDA of US$373 million in 2025. This figure increased from US$329 million in 2024, supported by a 32% year-on-year (YoY) rise in the average selling price (ASP) of gold and a 44% YoY increase in nickel ore production.

“Throughout 2025, we continued to strengthen our business foundation through scaling up operations and developing strategic projects,” said President Director Albert Saputro in a disclosure to the Indonesia Stock Exchange (BEI) on Tuesday (31/3/2026).

He explained that contributions from the company’s diversified business portfolio continue to form the main foundation of its performance. Throughout 2025, the Tujuh Bukit Gold Mine produced 103,156 ounces of gold.

Meanwhile, PT Merdeka Gold Resources Tbk (EMAS) recorded significant progress in developing mining operations and processing facilities at the Pani Gold Mine in 2025.

Entering 2026, the Pani Gold Mine began its first gold production on 14 February 2026 and realised its first gold sale to PT Aneka Tambang (Persero) Tbk (ANTM) on 16 March 2026, marking the start of the production and monetisation phase that will significantly support future financial performance improvements.

“Supported by the gold production plan from PT Merdeka Gold Resources Tbk and a competitive cost structure, the gold segment’s contribution to the group’s production and cash flow will increase significantly going forward,” he stated.

In 2026, PT Merdeka Gold Resources Tbk targets production of 100,000-115,000 ounces of gold, alongside sustainable production from the Tujuh Bukit Gold Mine at 80,000-90,000 ounces.

In the nickel segment, PT Merdeka Battery Materials Tbk (MBMA), another MDKA subsidiary, also demonstrated solid operational performance, with major projects proceeding according to plan.

Throughout 2025, nickel mining production at Sulawesi Cahaya Mineral (SCM) increased strongly, with saprolite production reaching approximately 7 million wet metric tonnes (wmt) and limonite around 14.7 million wmt.

“Development of downstream facilities is also progressing according to plan. The Acid Iron Metal (AIM) project operated by PT Merdeka Tsingshan Indonesia, a MBMA subsidiary, is on track to achieve full production,” he added.

Meanwhile, the development of the High Pressure Acid Leach (HPAL) facility of PT Sulawesi Nickel Cobalt with an installed capacity of 90,000 tonnes of nickel per year in the form of MHP continues on schedule, with commissioning of the first production line in mid-2026.

Throughout 2025, MBMA maintained performance through increased production volumes, operational efficiency, and cost discipline, strengthening the company’s position in the battery raw materials value chain.

This year, MBMA plans to increase saprolite ore production to 8-10 million wmt, while limonite ore production is targeted at 20-25 million wmt. MBMA anticipates further cost efficiencies along with increased SCM supply to achieve 100% self-sufficiency in saprolite ore for the company’s three Rotary Kiln Electric Furnace (RKEF) plants in 2026.

On the other hand, contributions from the copper segment remained stable, with the Wetar Copper Mine generating consistent cash flow throughout 2025. The Tujuh Bukit Copper project also recorded progress that strengthens long-term development visibility as one of the largest undeveloped copper-gold projects globally.

“2025 was an important period for the company in strengthening operational foundations and completing various strategic projects. With portfolio diversification, strong liquidity position, and strategic projects set to operate in 2026, Merdeka is in a solid position to enter the next growth phase,” he explained.

The start of production from the Pani Gold Mine and the scaling up of the nickel business are expected to be the main drivers of production and cash flow growth in the medium term.