Merdeka Copper's Losses Swell to Rp1.08 Trillion in Q3 2024

PT Merdeka Copper Gold Tbk's financial report shows the company incurred a loss of US$67.02 million, or Rp1.08 trillion (assuming an exchange rate of Rp16,241 per US$), in the third quarter of 2024.

The net loss attributable to the parent entity's owners swelled from US$23.77 million, or Rp386.11 billion, in the third quarter of 2023.

Revenue for the company, with the stock code MDKA, actually increased by 42.5% year-on-year (YoY). Specifically, revenue rose from US$1.17 billion, or Rp19.01 trillion, in September 2023 to US$1.66 billion, or Rp27.09 trillion, in September 2024.

However, the cost of revenue increased significantly, rising from US$1.05 billion (Rp17.08 trillion) in the third quarter of 2023 to US$1.54 billion (Rp25.17 trillion) in the third quarter of 2024, a 47.33% increase.

The cost of revenue was higher across all components in the third quarter of 2024, except for refining costs.

The breakdown is as follows: processing costs (US$1.15 billion); mining costs (US$124.57 million); depreciation expense (US$104.21 million); amortization expense (US$36.51 million); overhead costs (US$31.33 million); and refining costs (US$1 million). Royalties paid to the government amounted to US$37.64 million.

The financial report also reveals that sales of gold, silver, copper cathodes, NPI, nickel matte, and limonite nickel ore reached US$1.66 billion, or Rp27.08 trillion, in the third quarter of 2024.

This includes domestic third-party sales of US$1.03 billion and exports of US$641.85 million. This amount was reduced by hedging realizations of US$4.82 million.

Other sales amounted to US$220,300 to third parties and US$93,300 to related parties.

Revenue from customers exceeding 10% of sales came from PT Indonesia Tsingshan PT Indonesia Tsingshan Stainless Steel (US$551.89 million); PT CNGR Ding Xing New Energy (US$339.62 million); Precious Metals Global Markets (HSBC) (US$190.84 million); Eternal Tsingshan Group Limited (US$181.72 million); and Golden Harbour International Pte. Ltd (US$56.93 million). The total amounted to US$1.32 billion.

As of September 2024, MDKA's assets were recorded at US$5.14 billion (Rp83.59 trillion). Liabilities totaled US$2.25 billion (Rp36.64 trillion), and equity amounted to US$2.88 billion (Rp46.95 trillion).