Merdeka Gold (EMAS) Surges on 150% Jump in Reserves, Poised to Overtake BRMS in Market Value

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JAKARTA, Investortrust.id — PT Merdeka Gold Resources Tbk, or EMAS, has announced a 150 percent surge in its proven gold reserves to 4.8 million ounces at its flagship Pani Gold Mine in Gorontalo, positioning the miner to challenge PT Bumi Resources Minerals Tbk, or BRMS, in market capitalization at the Indonesia Stock Exchange.

The company, a subsidiary of PT Merdeka Copper Gold Tbk, said its latest technical study confirmed the Pani deposit now holds 4.8 million ounces of gold ore reserves, up sharply from 1.9 million ounces previously. Total mineral resources exceed 7 million ounces, making Pani one of Indonesia’s largest primary gold deposits.

The Pani mine officially began operations on Wednesday, Oct 1, 2025, with first gold production targeted for the first quarter of 2026 and peak output of 500,000 ounces per year projected by 2032. The reserve expansion reflects successful exploration and efficient resource management that, according to management, strengthen EMAS’s standing as a major player in the domestic gold industry.

Capital market analyst and founder of Republik Investor, Hendra Wardana, said the company’s valuation momentum is gaining strength, creating an opening for EMAS to surpass BRMS. “This is driven by two key factors — EMAS’s far larger reserves and its more aggressive production capacity,” Hendra told Investortrust.id on Monday, Oct 6, 2025.

Based on the latest filings, EMAS’s total gold resources of about 7 million ounces exceed BRMS’s 5.1 million ounces, placing it among Indonesia’s largest publicly traded gold producers after Freeport Indonesia and Amman Mineral. With annual production projected at nearly 495,000 ounces, EMAS is on track to become the nation’s third-largest gold producer.

At present, EMAS’s market capitalization stands at roughly Rp 501 trillion, or about US$ 30.2 billion, below BRMS’s Rp 720 trillion, or about US$ 43.4 billion. However, analysts see room for substantial upside as production scales up and annual revenue is forecast to reach US$ 519 million by 2029.

“If this momentum continues, EMAS could overtake BRMS in market capitalization over the medium term, especially if it secures inclusion in the MSCI Index and attracts greater foreign inflows,” Hendra added.

BRMS, meanwhile, continues to enjoy strong short-term demand, supported by its inclusion in the VanEck Gold Miners ETF (GDX) and the rally in global gold prices, which recently hit a record US$ 3,800 per troy ounce. “Future performance for both stocks will depend largely on production realization and global gold price stability,” he said.

Market data compiled by Investortrust.id on Monday show EMAS now holds the largest gold ore reserve among local peers. PT J Resources Asia Pasifik Tbk (PSAB) has 2.3 million ounces, PT Archi Indonesia Tbk (ARCI) holds 3.9 million ounces, BRMS reports 3.5 million ounces, and PT Indika Energy Tbk (INDY) about 1.5 million ounces. Mandiri Sekuritas research released Sept 16, 2025, also ranks EMAS highest with total resources of 7 million ounces, followed by PSAB at 6.1 million, ARCI at 5.5 million, BRMS at 4.2 million, and INDY at 2.3 million.

Analysts said the size of EMAS’s reserves and resources underpins a strong long-term fundamental outlook. Large ore reserves ensure extended mine life and a stable platform for production growth. “In theory, companies with higher reserves deserve premium valuations,” Mandiri Sekuritas noted, citing favorable fundamentals despite cost and policy variables.

As of Monday’s close, EMAS traded at Rp 4,530 per share, down 0.22 percent on the day but still well above its IPO price of Rp 2,880 on Sept 24, 2025. The company debuted strongly, jumping 25 percent on its first day. Trimegah Sekuritas, lead underwriter of the IPO, estimates EMAS’s fair value at Rp 7,900 per share, with a buy recommendation and a medium-term target of Rp 5,800. Trimegah also highlighted EMAS’s efficient production cost of about US$ 1,200 per ounce, far below ARCI’s US$ 1,881 per ounce.

Capital market observer Wahyu Tri Laksono said EMAS remains technically bullish in the medium term. “The trend is positive toward Rp 5,000 as the stock completes its post-IPO consolidation phase, supported by solid fundamentals and a favorable gold cycle,” Wahyu said.

President Director Boyke P. Abidin emphasized that the commencement of mining at Pani marks a milestone for the company. “This first mining operation is a major step for EMAS and all stakeholders. It leads directly to heap leaching, processing, and our first gold production in the coming months,” Boyke said.

With reserves now expanded 150 percent and operations progressing on schedule, EMAS is emerging as a structural challenger to BRMS in market value — BRMS with ETF-driven momentum, and EMAS with stronger fundamentals. If global gold prices remain above US$ 3,500, analysts expect EMAS’s valuation to close the gap with BRMS by 2026.

President Director PT Merdeka Gold Resources Tbk Boyke P. Abidin delivers remarks at the company’s listing ceremony at the Indonesia Stock Exchange, Jakarta, Monday, Sept 23, 2025. Photo: Investortrust/Dicki Antariksa.