Merdeka Copper Shares Soar on Positive Commodity and Project Outlook
Main Takeaways
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JAKARTA, investortrust.id – Shares of Indonesian mining company PT Merdeka Copper Gold Tbk have surged nearly 19% during Thursday’s afternoon session on the Indonesia Stock Exchange, driven by a wave of optimism surrounding commodity prices and project developments.
The company, which is backed by prominent Indonesian businessmen Edwin Soeryadjaya and Garibaldi Thohir, saw its shares rise 18.73% to Rp 1,690 by 14:30 local time. This sharp gain contrasted with the stagnation seen in most other mining-related stocks on the day.
According to a recent research report by BRI Danareksa Sekuritas, analysts Timothy Wijaya and Naura Reyhan Muchlis maintained a bullish view on MDKA, citing the rally in global gold and copper prices. The analysts also noted improved financial performance since the fourth quarter of 2024 as a key factor in their continued “buy” recommendation, with a target price of Rp 2,400.
The report projects Merdeka Copper Gold to post a net profit of approximately $62 million in 2025, supported by an estimated $2.10 billion in total revenue. In 2024, the company booked revenue of $2.24 billion, with the performance of its subsidiary, PT Merdeka Battery Materials Tbk, playing a central role in that growth.
In addition to commodity tailwinds, investors are reacting positively to progress on the company’s key assets. Development at the Tujuh Bukit copper and gold mine, located in East Java, continues to generate long-term value. The extension of the Tujuh Bukit mine’s operational life through to 2030 has also helped buoy investor sentiment, providing stronger cash flow visibility ahead of transitioning into more capital-intensive sub-level cave (SLC) and block cave (BC) mining techniques.
Meanwhile, the Pani gold project in Gorontalo province—one of MDKA’s flagship expansions—has reached 46% completion as of the first quarter of 2025. The project remains on track to begin initial production by the end of this year, aligning with the company’s earlier timeline.