Merdeka Copper Gold, Owned By Conglomerate Edwin Soeryadjaya And Sandiaga Uno Optimistic Performance Improves In 2021

JAKARTA - Mineral mining company, PT Merdeka Copper Gold Tbk (MDKA) optmistis performance in 2021 will improve and grow. The Management of Saratoga Group's company is confident that along with the increase in the price of gold and copper as the company's flagship commodity.

Vice President Director of Merdeka Copper Gold Simon Milroy explained that he is very confident of improvement in 2021. The production level of issuers owned by conglomerates Edwin Soeryadjaya and Sandiaga Uno is likely to rise since the third quarter of 2021.

"Moreover, the price of gold and copper tends to strengthen in 2021. We are also optimistic about this year's performance," he said at a virtual public expose on Tuesday, May 25.

Furthermore, according to Simon, the price of gold has increased significantly in the long run and many analysts expect this trend to continue. Although a new wave of COVID-19 cases is soaring in some countries that may slow the global economic recovery, the gold price target will be around 2,144 US dollars per troy ounce, based on market consensus for 2021.

The spot gold price is in the range of 1,880 US dollars per troy ounce. On the other hand, copper prices have performed well this year with a 26.84 percent year to date (ytd) increase to 9,829 U.S. dollars per ton in April 2021.

According to Simon, most analysts see a long-term upward trend in copper due to the economic recovery in China after COVID-19 and the Biden administration's infrastructure plan that is predicted to increase the demand side.

In addition, copper is important in high-growth sectors such as electric vehicles. Electric cars use 3-4 times the amount of copper used in producing conventional vehicles.

By 2021, MDKA targets production in the range of 100,000 to 120,000 ounces of gold from the mine with an All in Sustainable Cost (AISC) of 825 - 900 dollars per ounce.

In addition, performance will also be further supported as the strategic review of the Wetar Copper mine is completed. Copper production is expected to reach consistent production levels in the second quarter of 2021.

MDKA targets copper production volume in the range of 14,000 tons to 17,000 tons with AISC worth 4,620 - 5,720 per ton by 2021. Simon admitted that in the first quarter of 2021 the company's performance has not been positive.

The Company recorded a current year loss attributable to owners of the parent entity of USD4.98 million in the first quarter of 2021, inversely proportional to a profit of USD14.97 million in the first quarter of 2020.