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20240725_AMMN_Laporan Informasi dan Fakta Material_31687458_lamp2.pdf
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PRESS RELEASE
FOR IMMEDIATE RELEASE
July 26, 2024
AMMAN H1 2024 EARNINGS RESULTS
ACHIEVED THE HIGHEST FIRST HALF-YEAR PRODUCTION IN SEVEN YEARS
H1 2024 Key Highlights
• Copper production was 236 million lbs (“Mlbs”), with a sales volume of 173 Mlbs.
• Gold production was 494,895 ounces (“oz”), with a sales volume of 344,235 oz.
• Concentrate production was 444,143 dry metric tons (“dmt”), with a sales volume of 337,929
dmt.
• Copper and gold production rose year-on-year (“YoY”) by 76% and 189%, respectively, setting
a record for the highest first half production in seven years.
• Net sales were US$1,549 million.
• EBITDA was US$959 million, with a 62% margin.
• Net income was US$479 million, with a 31% margin.
• As of May 31, 2024, the smelter project has reached mechanical completion and has entered
the commissioning stage since then.
• On July 25, 2024, AMNT was granted a copper concentrate export permit. The permit allows
for the export of up to 587,330 wet metric tons, or approximately 534,000 dry metric tons of
copper concentrate and is valid until 31 December 2024.
Jakarta, July 26, 2024 – PT Amman Mineral Internasional Tbk (IDX: AMMN) (“AMMAN”, the “Company",
or "We”), the owner and operator of the second largest copper and gold mine in Indonesia, the Batu
Hijau mine, today announced its H1 2024 financial and operational results.
"Our performance in the first half of 2024 has been the strongest in seven years, marking a period of
exceptional achievement for AMMAN. Since taking over the operations at Batu Hijau, our operations
have broken multiple production records, and our metal production has reached unprecedented
levels, surpassing our record performance in 2022. This significant increase in metal production is
primarily due to the extraction of high-grade ore from Phase 7, where we are currently at peak
production. This success is a testament to the unwavering dedication of our team towards
continuous improvement and excellence in performance, allowing us to continuously achieve
record-breaking mining productivity. In the first half of 2024, concentrate production surged by 90%
year-over-year, with copper and gold production increasing by 76% and 189%, respectively. Our
expansion projects are also progressing as planned. The smelter project entered the commissioning
stage on May 31, 2024, with the first production of copper cathode expected in the fourth quarter of
2024. Additionally, AMNT was granted a copper concentrate export permit on July 25, 2024. Our full-
year 2024 guidance remains unchanged, reflecting our confidence in sustaining this momentum,"
said Alexander Ramlie, President Director of AMMAN.
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"Our financial performance in the first half of 2024 is also the highest since we took over Batu Hijau
operations, primarily driven by a significant increase in copper and gold sales volumes, which grew
by 126% and 188%, respectively, and operational efficiencies. A 13% rise in gold prices also lifted the
company's performance. Despite the export ban starting on June 1, 2024, net sales for the first half
of 2024 rose by 167% YoY to US$1,549 million, driven by production from high-grade ores. H1 2024
EBITDA surged 186% YoY with an EBITDA margin of 62%. Net income for the period rose by 291% to
US$479 million. Finally, our capital expenditure plan remains on track, and we will continue to closely
monitor global commodity and financial markets, and maintain prudent financial policies,” said Arief
Sidarto, Director of Finance at AMMAN.
AMMAN H1 2024 Key Operational and Financial Highlights
H1 2024 H1 2023 % Change
Operating metrics
Materials mined (Mt) 153 140 9%
Mill throughput (Mt) 20 18 13%
Concentrate
Concentrate production (dmt) 444,143 233,618 90%
Concentrate sales (dmt) 337,929 137,856 145%
Copper
Copper production (Mlbs) 236 134 76%
Copper sold (Mlbs) 173 76 126%
Copper price net (US$/lb) 4.46 4.48 (0.4%)
Adjusted C1 cost (US$/lb sold)1 (2.44) (0.90) 171%
Gold
Gold production (oz) 494,895 171,505 189%
Gold sold (oz) 344,235 119,342 188%
Gold price net (US$/oz) 2,263 2,004 13%
H1 2024 H1 2023 % Change
Financial metrics (US$m)
Net sales 1,549 581 167%
EBITDA 959 336 186%
Net income2 479 122 291%
Capex 867 436 99%
Jun-24 Dec-23 % Change
Cash and cash equivalents 1,333 1,229 9%
1 Adjusted for net movement of deferred stripping costs and net movement in stockpiles and concentrate inventories.
2 Net income H1 2024 includes IUPK PNBP, a non-tax government revenue for a special mining business license, for the
respective period.
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Production
In H1 2024, metals production experienced a substantial increase, mainly due to the high-grade ore
from Phase 7. This resulted in a 76% YoY rise in copper production and a remarkable 189% YoY
increase in gold production, marking the highest copper and gold production in the past seven years.
Concentrate production soared by 90%, reaching 444,143 dmt compared to H1 2023. The amount of
materials mined also grew by 9% from H1 2023, primarily due to minimal interruptions in mining
activities resulting from favorable weather conditions. This resulted in the highest mining
productivity and the greatest volume of ex-pit materials moved during H1 since the inception of Batu
Hijau operations 24 years ago. Additionally, unit mining costs decreased by 2% YoY, falling from
US$2.39/ton in H1 2023 to US$2.34/ton in H1 2024, primarily due to the reduction of pumping
activities required to dewater the pit bottom and the increased volume of materials mined compared
to H1 2023.
H1 2024 H1 2023 % Change
Concentrate production (dmt) 444,143 233,618 90%
Copper production (Mlbs) 236 134 76%
Gold production (oz) 494,895 171,505 189%
Net sales
Net sales rose 167% to US$1,549 million, compared to US$581 million in H1 2023. This increase was
caused by production from high-grade ore which contained significant amounts of gold. The gold
sales contribution in H1 2024 was 50% of total net sales, up from 41% in H1 2023.
AMMAN's strong financial performance in H1 2024 was primarily driven by significant increases in
copper and gold sales volumes, which grew by 126% and 188%, respectively. A 13% rise in gold prices
also boosted the company's performance.
EBITDA
For the first half of the year, AMMAN’s EBITDA increased by 186%, from US336 million in H1 2023 to
US$959 million in H1 2024. This improvement was primarily driven by increased sales. Profitability
also improved, with EBITDA margin rising from 58% in H1 2023 to 62% in H1 2024.
Net income
AMMAN’s net income surged 291%, from US$122 million in H1 2023 to US$479 million in H1 2024. The
net income margin also improved, rising from 21% in H1 2023 to 31% in H1 2024, primarily due to
increased sales.
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Adjusted C1 Cost
C1 Cash Cost is a metric representing the costs of mining and processing the Company's principal
metal product, copper, to a condition in which it may be delivered to customers net of gold and silver
credits from concentrate sold. Our adjusted C1 Cost in H1 2024 improved by 171% from US$(0.90) per
lb sold in H1 2023 to US$(2.44) per lb sold in H1 2024, attributed to the notably enhanced contribution
of gold as a by-product credit.
Capex
AMMAN’s total capital expenditure in H1 2024 was US$867 million, nearly double from H1 2023. This
increase is mainly due to the expansion projects, with the following details: smelter and PMR
expenditures totaling US$265 million; combined cycle power plant (“CCPP”), liquefied natural gas
(“LNG”), and transmission and distribution (“T&D”) facilities costing US$123 million; processing plant
expansion (including redesign) totaling US$274 million; supporting infrastructure expenses
amounting to US$98 million; and sustaining capex of US$106 million.
On May 31, 2024, the smelter project reached mechanical completion and entered the
commissioning stage since then. The first production of copper cathodes is expected in Q4 2024.
Debt
As of June 30, 2024, AMMAN’s total debt amounted to US$3,784 million, with a net debt of US$2,451
million, representing an 18% increase in total debt from December 2023. The rise in leverage signifies
additional loans to support capital expenditure and operations. The debt maturity profile has been
structured to enable AMMAN to focus on its expansion program.
Balance
(US$m)
AMNT Working Capital Loan 187
AMNT Term Loan 2,947
AMIN Term Loan 600
ANG Term Loan 50
Total debt 3,784
Cash and cash equivalents 1,333
Total net debt 2,451
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Company Outlook
Our FY2024 guidance remains steadfast, reflecting our commitment to optimizing production. We
project an output of 833,000 dmt of concentrate, containing approximately 456 million pounds of
copper and 1,009,000 ounces of gold. This production target is underpinned by the high-grade fresh
ore from Phase 7, which will be mined and processed.
On July 25, 2024, AMNT received a copper concentrate export permit extension until December 31,
2024.
Operating and Financial Measures Full-Year 2024 Guidance
Copper production 456 Mlbs
Gold production 1,009,000 oz
Concentrate production 833,000 dmt
Production first copper cathode Q4 2024
CAPEX
Smelter and PMR US$415 million
CCPP, LNG and T&D facilities US$438 million
Processing plant expansion US$530 million
Supporting infrastructure US$205 million
Processing plant expansion redesign US$114 million
Sustaining capex US$303 million
Total Capex US$2,005 million
The smelter project reached mechanical completion on May 31, 2024 and entered the commissioning
stage since then. The production of the first copper cathode is expected in Q4 2024.
Our guidance represents our expectations as of the date of this press release and may be subject to
change.
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About AMMAN
PT Amman Mineral Internasional Tbk (IDX: AMMN) is the largest copper and gold producer on the
Indonesian Stock Exchange. Through its subsidiary, PT Amman Mineral Nusa Tenggara ("AMNT"), the
Company owns and operates the Batu Hijau mine, Indonesia's second-largest copper-gold mine.
AMNT also processes ore into concentrate and conducts exploration activities at the Elang project.
The copper smelter and precious metals refinery (“PMR”) are under another subsidiary, namely PT
Amman Mineral Industri ("AMIN"), After the copper smelter and PMR facilities are completed, AMMAN
will become a fully integrated mining-to-smelting business near key end-market regions in Asia. We
are committed to leading with sustainable practices and creating a legacy of the best for Indonesia.
Disclaimer
This press release and its information have been prepared by PT Amman Mineral Internasional Tbk.
(“Company” or “AMMN”) solely for information purposes only and does not constitute a
recommendation regarding any securities of the Company. The information contained in this
document should be considered in the context of the circumstances prevailing at the time and is
subject to change without notice and will not be updated to reflect material developments that may
occur after the date hereof. Certain statements in these materials constitute forward-looking
statements and information with respect to the future financial condition, results of operations and
certain plans and objects of management of the Company and the Group (“Forward-Looking
Statements”). Such Forward-Looking Statements are made based on management’s current
expectations or beliefs as well as assumptions made by, and information currently available to,
management. Neither the Company nor any of its advisers assumes any responsibility to update
Forward-Looking Statements or to adapt them to future events or developments. This document is
not financial, legal, tax or other product advice.
Contacts
Media:
Kartika Octaviana, Vice President Corporate Communications & Investor Relations
communications@amman.co.id
Vemmy Febrianti, Corporate Secretary & Legal
corporate.secretary@amman.co.id
Investors / Analysts:
AMMAN
investor.relations@amman.co.id
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Additional Information
Mineral Exploration
Our Phase 7 ore mining at the Batu Hijau mine is underway and will continue through 2024.
Concurrently, Phase 8 waste removal is progressing as planned and will commence Phase 8 ore
mining in 2025 through 2030. Based on a series of ore reserves statements prepared by an
independent mining consultant with drilling and resource modeling in 2020, Phase 8 is expected to
produce 458 Mt of ore amounting to 3.86 Blbs of copper and 5.30 Moz of gold, effectively extending
the mine life for six years. We are committed to employing advanced techniques and reconfiguring
mining sequences to enhance productivity and efficiency.
The Elang Deposit is one of the world's largest undeveloped porphyry copper and gold deposits near
the Batu Hijau mine. Once Phase 8 ore mining is completed, AMMAN intends to commence
production at the Elang mine. The Elang mine will utilize the existing processing infrastructure at Batu
Hijau throughout its mine life. The ongoing Definitive Feasibility Study for Elang is expected to be
completed in 2024.
Expansion Projects
Processing and Power Facilities Expansion
We are expanding our processing plant to increase input capacity to 85 million tonnes per annum
("Mtpa"), more than double our current capacity. This will enable us to process ore supply from Batu
Hijau's Phase 8 and Elang in the future, which is necessary to meet the growing demand for our
products. At the same time, we are constructing a 450 MW CCPP and its supporting LNG facilities.
We remain committed to minimizing our impact on the environment.
Smelter
AMMAN is currently constructing copper smelter and PMR facilities with an aggregate input capacity
of 900,000 metric tons per annum (“tpa") of concentrate from the Batu Hijau mine and the future
Elang mine. The copper smelter will produce up to 222 kilo tonnes per annum (“ktpa”) of copper
cathode and 830 ktpa of sulfuric acid. Meanwhile, the PMR facility will receive 970 tpa anode slime
input from the smelter. The PMR facility will produce 18 tpa of gold bars, 55 tpa of silver bars, and
77 tpa of selenium. The smelter project has reached mechanical completion on May 31, 2024 and
entered the commissioning stage since then. The production of the first cathode expected in Q4
2024.
Export Permit
On July 25, 2024, AMNT received an export permit from Indonesia's Ministry of Trade to export
copper concentrate. The permit, which allows for the export of 587,330 wet metric tons or
approximately 534,000 dry metric tons of copper concentrate, is valid until December 31, 2024 with
an export duty of 7.5%.
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PT Amman Mineral Nusa Tenggara
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PT Amman Mineral Industri
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