PT Merdeka Copper Gold Tbk “MDKA”
MDKA benefits from increasingly integrated and diversified operations, supported by SCM’s nickel supply to downstream smelters and further integration through AIM and MBMA’s HPAL projects, which should broaden its revenue base over time. Revenue is projected to reach approximately USD3.3 billion in 2026, supported by higher saprolite and limonite production, the commercial operation of AIM, and a more diversified product mix across gold, copper, nickel products, acid, steam, iron ore, and MHP. The Company also maintains sizeable mineral reserves and resources, including 358.2 million dmt of nickel reserves at SCM and substantial gold reserves at Tujuh Bukit and Pani, providing a relatively long operating life and supporting future production growth. Despite these strengths, MDKA’s capital structure has weakened due to sizeable external funding requirements for acquisitions and expansion projects while several assets remain in construction or early-stage operations. Nevertheless, financial leverage is projected to remain moderate in 2026, with debt-to-EBITDA of around 3.5x and debt-to-equity of around 0.9x, although earnings and leverage remain sensitive to nickel price volatility given the commodity’s significant contribution to revenue.