Merdeka Copper Gold Swings to Profit on Commodities Rally

JAKARTA, Investortrust.id — PT Merdeka Copper Gold Tbk (MDKA) reported a robust financial turnaround for the first quarter of 2026, driven by higher realized gold prices, surging nickel sales volumes, and strengthening margins across its core business lines.

The company booked a net profit attributable to parent entity owners—known as NPATMI—of $57.5 million, a sharp reversal from the $3.7 million loss recorded in the same period last year. On a consolidated basis, revenue grew 24% year-over-year to $620.3 million, while EBITDA leaped 182% to $249.9 million.

For investors, Merdeka’s results provide a tangible look at the efficacy of Indonesia’s broader "downstreaming" strategy, which aims to shift the country from a raw commodity exporter to a high-value industrial player. By aggressively diversifying into both precious metals and battery-grade nickel, Merdeka has positioned itself to capitalize on two competing market trends: the perennial safe-haven demand for gold and the industrial imperative for electric-vehicle components. The successful integration of the Pani gold project illustrates the company’s ability to execute complex projects during a period of geopolitical uncertainty and supply-chain volatility.

A Solid Start

President Director Albert Saputro said on Monday, June 29, 2026, that the company’s strong performance reflects the resilience of its diversified portfolio. "We have started 2026 on a firm footing, supported by rising gold prices, increased limonite sales volume, improved nickel margins, and the maiden contribution from the Pani Gold Mine," Mr. Saputro said.

Management’s focus, he added, remains on disciplined execution, cost optimization, and the expansion of its core growth platforms. In the first quarter, the gold segment emerged as the primary driver of EBITDA, contributing $89 million. Other significant contributors included Nickel Pig Iron (NPI) at $67 million, limonite at $48 million, and High-Grade Nickel Matte (HGNM) at $25 million.

Gold and Nickel Dynamics

Total gold production grew 5% year-over-year to 26,652 ounces, significantly bolstered by the initial production from the Pani project, operated by PT Merdeka Gold Resources Tbk. Meanwhile, the flagship Tujuh Bukit gold mine continued to deliver strong returns, achieving an average selling price of $4,841 per ounce against a cash cost of $685 per ounce, yielding a robust cash margin of $4,156 per ounce.

In the nickel segment, PT Merdeka Battery Materials Tbk (MBMA) capitalized on improved selling prices and increased volume. The volume of ore extracted jumped 143% to 7.7 million wet metric tonnes (wmt)—approx. 8.5 million short tons—driven by higher output of both limonite and saprolite.

Margins remained resilient across the board. Saprolite and limonite recorded cash margins of 14% and 50%, respectively, while Nickel Pig Iron—a primary ingredient in stainless steel—booked a 29% margin. The company noted that its profitability was further aided by a reduction in reliance on third-party saprolite supplies, suggesting an improvement in operational autonomy.