Jakarta, TAMBANG – PT Merdeka Copper Gold Tbk (MDKA) reports that the Tujuh Bukit underground project, Banyuwangi, is still in the feasibility study stage. This was conveyed by the Deputy Director of MDKA, Simon James Milroy after the General Meeting of Shareholders (GMS) some time ago.
“The Pani project and the Tujuh Bukit project are currently focusing on feasibility studies on the two projects. Including ongoing drilling,” said Simon, quoted Monday (13/6).
As is known, until the first quarter, MDKA has disbursed funds of Rp. 149.2 billion for the exploration phase of three mining areas, namely Tujuh Bukit, Pulau Wetar and Block Pani. Among other things, the budget is used for tunnel maintenance, drilling for soil resource definition and test work related to the area.
On this occasion, MDKA also announced brilliant achievements throughout the first quarter of 2022. The company that focuses on mineral mining managed to produce 33,968 ounces of gold, an increase of 104.8 percent compared to the same period last year which reached 16,585 ounces.
“From a financial and operational perspective, MDKA recorded a brilliant performance in the first quarter of 2022. MDKA managed to produce 33,968 ounces of gold, an increase of 104.8% compared to the same period in the previous year of 16,585 ounces,” said MDKA’s Corporate Secretary, Adi Adriansyah Sjoekri.
Adi then stated that the company also managed to increase its copper production by 111.6% from 2,489 tons in the first quarter of 2021 to 5,267 tons in the same period this year.
In the first quarter of 2022, MDKA also managed to record a profit of USD65.41 million, which rose significantly from the previous loss of USD6.34 million in the same period the previous year. MDKA also recorded stronger revenue as reflected by the achievement of EBITDA of USD105 million compared to the same period the previous year of USD25 million.
This profit and EBITDA gain was driven by the existence and operation of MDKA’s assets, namely the Tujuh Bukit Gold Mine and Wetar Copper Mine.
Throughout 2022, the Tujuh Bukit Gold Mine is targeted to produce in the range of 100,000 ounces to 120,000 ounces of gold with an AISC of USD1,000 per ounce to USD1,100 per ounce, after deducting silver credits.
As of March 31, 2022, 49,217 ounces of gold were hedged with an average price of US$1,864 per ounce for the period April 2022 to June 2023. Meanwhile, the Wetar Copper Mine throughout 2022 is targeted to produce in the range of 18,000 tons to 22,000 tons of copper with an AISC of USD6 .820 per tonne to USD7,480 per tonne.
The production rate will increase in the following years after the start of using the Water Treatment Plant. As of March 31, 2022, 2,000 tonnes of copper were hedged at an average price of USD9,838/ton for the period April to July 2022.