Merdeka Gold's Losses Swell to US$27 Million Despite Rising Gold Prices, Why?

PT Merdeka Gold Tbk (EMAS) recorded a net loss of US$27.49 million in 2025, surging 116.62 per cent compared to 2024’s loss of US$12.69 million.

This substantial loss materialised despite global gold prices experiencing a significant rally, increasing by 65 per cent throughout 2025 to reach US$4,300 per troy ounce.

The primary cause of EMAS’s ballooning losses is the company’s failure to commence gold sales, with operations only beginning in October 2025 focused primarily on stripping overburden.

The company’s sole revenue stream also contracted markedly, with equipment rental income falling to US$131.96 thousand in 2025, representing a 92.52 per cent decline from US$1.74 million.

Consequently, basic loss per share doubled to US$0.0019 from US$0.0009.

Cost of goods sold amounted to US$277.95 thousand, declining from US$1.18 million. Gross loss reached US$145.99 thousand, falling from a previous gross profit of US$569.56 thousand. General and administrative expenses surged to US$9.48 million, ballooning 829.41 per cent from US$1.02 million.

Operating loss increased to US$9.63 million, up 20.40 per cent from US$449.79 thousand. Financial income leapt to US$1.2 million, rising 76.47 per cent from US$687.94 thousand, whilst financial expenses declined to US$14.72 million from US$20.67 million.

Other expenses totalled US$2.24 million, falling from a prior-year surplus of US$5.5 million. Loss before income tax rose to US$25.39 million from US$14.93 million at the end of 2024.

Total equity increased to US$380.93 million from US$273.03 million previously. Accumulated losses swelled to US$61.49 million from US$34 million. Total liabilities rose to US$359.7 million from US$256.68 million at the end of 2024. Total assets surged to US$740.63 million from US$529.72 million.