BRI Danareksa: AMMAN Enters a New Phase of Growth

Illustration. (Photo: Dok. Antara)

JAKARTA - In its maiden research report dated June 29, 2026, BRI Danareksa Sekuritas initiated coverage on PT Amman Mineral Internasional Tbk (AMMN) with a “Buy” recommendation and a target price of Rp6,000 per share. BRI Danareksa views AMMN as being at the beginning of a new growth cycle, supported by increased production from the Batu Hijau Mine Phase 8 and the growing contribution of its downstream business, which has begun producing higher value-added metal products.

BRI Danareksa Sekuritas analyst Andhika Audrey Eko Nugroho said the operational transition period throughout 2025 is beginning to come to an end, opening up opportunities for stronger performance growth starting this year.

“AMMN is entering a significant earnings growth cycle in 2026 after going through the transition period of Batu Hijau Phase 8 development,” BRI Danareksa wrote in its report.

Signs of recovery were already visible in the first quarter of 2026, when the volume of fresh ore mined increased to 38 million tonnes, compared with approximately 1 million tonnes in the same period of the previous year. This helped lift concentrate production to 167.8 thousand dry metric tonnes (dmt), representing a 110% year-on-year increase. The production contained approximately 101 million pounds of copper and 136 thousand ounces of gold.

The production recovery at Batu Hijau is expected to become one of the key drivers of AMMN’s performance growth throughout 2026. BRI Danareksa estimates the company’s revenue to reach around US$4 billion this year, up 117% from the previous year. EBITDA is projected to rise 97% to approximately US$2 billion.

Transformation into an Integrated Metals Producer

In addition to the recovery in mining production, AMMN’s business transformation through downstreaming is seen as an important factor that will enhance the quality of the company’s revenue over the long term.

In the first quarter of 2026, AMMN’s smelter and Precious Metal Refinery (PMR) facilities produced around 27.7 thousand tonnes of copper cathode and 66.2 thousand ounces of refined gold.

According to BRI Danareksa, AMMN is now transforming from a company that previously sold concentrate into an integrated metals producer that delivers final products in the form of copper cathode and refined gold that meet international standards. This shift is expected to provide higher value added while strengthening the company’s resilience amid global mining industry dynamics.

Starting in the second quarter of 2026, following the expiration of its concentrate export permit in April 2026, AMMN’s performance is expected to be driven by sales of copper cathode and refined gold.

Processing Capacity to More Than Double

BRI Danareksa also highlighted AMMN’s new processing facility project, which is currently entering the final stage of construction.

The facility is scheduled to receive its first ore in the second half of this year and will increase processing capacity from around 40 million tonnes per year to approximately 85 million tonnes per year.

The capacity expansion is expected to support production volume growth in the coming years, both to sustain Batu Hijau operations and to support the development of the Elang project as the company’s long-term growth engine.

Over the medium term, copper cathode production is projected to continue increasing in line with higher smelter utilization, while refined gold production is also expected to grow significantly as the PMR facility is optimized.

Supported by Positive Copper and Gold Outlook

Beyond internal company factors, BRI Danareksa also sees the global copper market outlook as highly attractive over the next several years.

Copper demand is no longer driven solely by the construction sector, but increasingly by electrification trends, the development of artificial intelligence-based data centers, electric vehicles, and renewable energy infrastructure.

At the same time, global supply growth remains limited, which is expected to keep the copper market in deficit in both the short and long term.

Meanwhile, gold prices continue to receive support from strong demand from global central banks, which have been increasing their holdings of the precious metal as part of their foreign exchange reserve diversification strategies.

With the combination of Batu Hijau’s operational recovery, a growing contribution from downstreaming, a near-completion expansion project, and a positive outlook for the company’s key commodities, AMMN is considered to be in a strong position to enter its next phase of growth.