By Tri Luluk Lufiana
IDX-listed copper and gold mining firm PT Amman Mineral Internasional Tbk (IDX: AMMN) reported a sharp drop in first-quarter production and financial performance as the company transitioned to mining lower-grade ore in the early stages of Phase 8 and initiated the ramp-up of its new smelter.
AMMN, the operator of Indonesia's second-largest copper and gold mine, the Batu Hijau mine in Sumbawa Barat, West Nusa Tenggara Province, said that total material mined in Q1 2025 rose 2% year-over-year, but the volume of fresh ore decreased due to a focus on waste removal and extraction of lower-grade material from the outer halo of Phase 8.
This shift contributed to a 55% year-over-year decline in concentrate production, totaling 79,741 dry metric tons. Copper output fell 62% to 37 million pounds, while gold production plunged 81% to 32,340 ounces.
Despite longer haul distances and inflationary pressure on fuel and labor, mining costs per unit remained stable, driven by the slight increase in total material movement.
Read also : Amman reports record gold production in 2024, strong financial results
The company’s new copper smelter produced its first cathodes — approximately 635 tonnes — in late March. However, Amman noted the smelter requires further stabilization before it can achieve full operational capacity. In the interim, the company has requested government approval to pursue a hybrid sales approach, allowing for the simultaneous export of copper cathodes and concentrate to manage potential production bottlenecks.
Financial results mirrored the production challenges. Amman reported no sales volume for the quarter, with minimal net sales of US$2 million stemming only from mark-to-market adjustments on prior shipments. This led to an EBITDA loss of US$42 million, compared to a positive US$326 million in Q1 2024. The company posted a net loss of US$138 million, a sharp reversal from the US$131 million net income reported in the same period last year.
While the losses were expected due to the timing of smelter commissioning and lack of sales activity, Amman emphasized that its full-year 2025 guidance remains unchanged. The company expects to produce 430,000 dry metric tons of copper concentrate this year, yielding 228 million pounds of copper and 90,000 ounces of gold. Production is forecast to ramp up significantly in the second half of the year as mining advances toward the higher-grade central zone of Phase 8.
Amman also confirmed it had stockpiled 190,000 dry metric tons of concentrate by the end of 2024 to support smelter ramp-up efforts in early 2025.
Editing by Reiner Simanjuntak
