PT Amman Mineral Internasional Tbk (AMMN) shares shot up on February 29, 2024. AMMN shares closed at a new high of IDR 8,500, or an increase of 6.25%.

A total of 106.59 million shares were traded, with a frequency of 7,598 times, and the transaction value of Amman Mineral shares was IDR 884.65 billion.

As previously reported, PT Amman Mineral Industri, a subsidiary of PT Amman Mineral Internasional Tbk (AMMN), remains committed to completing the national strategic project of copper smelter facilities and precious metal refining (PMR).

The results of the quarterly progress verification from the independent verifier for October 2023 to December 2023 stated that the progress of AMMAN's copper smelter construction has reached 76.1% of the construction plan of 72.4% (105.1%). Meanwhile, the progress of PMR construction has reached 72.7% of the construction plan of 72.1% (100.7%).

AMMAN's Vice President of Corporate Communications and Investor Relations, Kartika Octaviana, stated that the company is confident that the physical construction progress of the smelter and PMR is going well to meet the construction completion target at the end of May 2024 and start the commissioning process in June 2024.

"This achievement is a manifestation of AMMAN's commitment as one of the largest copper and gold mining companies in Indonesia to always be involved in the development of the national mining industry that brings benefits to the regional and national economy," Kartika explained in an official statement dated February 5, 2024.

Once in operation, the total input capacity of AMMAN's copper smelter and PMR facility is estimated to reach 900 thousand kilo tons per year (ktpa) of concentrate from the Batu Hijau mine and Elang project later. The products of this processing will be copper cathode reaching 222 ktpa and sulfuric acid reaching 830 ktpa.

Meanwhile, the PMR facility will produce 18 tpa of gold bullion, 55 tpa of silver bullion, and 70 tpa of selenium.

In September last year, AMMAN also signed a preliminary agreement with PT Pertamina (Persero) to ensure the supply of a more environmentally friendly energy source, liquified natural gas, for the gas and steam power plant currently under construction to support the operations of the copper smelter and PMR facilities.

In addition, Amman Mineral Internasional (AMMN) management expects to return to stronger financial performance after a challenging H1/2023 and remains on track to deliver better H2/2023 performance and achieve FY2023 targets.

Samuel Sekuritas analysts Juan Harahap and Haikal Putra Samsul, in their research last November 2023, predicted that AMMN will record a big jump in profit in 4Q23, driven by increased input of higher-grade ore from the Phase 7 project (higher grade from the company's deposit ore), which will boost copper and gold production.

For the record, new ore contributed about 50% of AMMN's total mill production in 3Q23 (1H22: 100% from stockpiles).

"Therefore, we expect AMMN to book 27.5% and 74.5% QoQ growth in copper and gold production volume in 4Q23. For reference, we provide more conservative numbers compared to the company's copper and gold guidance of 337 Mlbs and 502 Koz (our estimates: 292 Mlbs and 453 Koz)," Juan Harahap and Haikal Putra explained.

In addition, there is a potential increase in copper prices. Juan Harahap and Haikal note that global copper production will increase due to rising production from the Qualleveco and Kamoa Kakula mines.

However, they believe that supply growth in the long term will not be very significant as limited capital expenditure on exploration could potentially result in reduced reserves and lower ore grades.

"On the other hand, global copper demand will increase rapidly as renewable energy and electric vehicles become more popular (copper is an important material in the production of renewable energy and electric vehicle batteries). Hence, we expect global copper demand CAGR to exceed global copper supply (projected CAGR 2023F-2023F: 3.9% vs 2.2%)," he explained.

Image source: Investor.id / prospektus perseroan
Source: https://investor.id/market/355218/amman-mineral-ammn-sahamnya-cetak-rekor-ada-apa