MDKA Swings to USD 102 Million Profit in H1 2026, Driven by Nickel and Gold Businesses
Sat 26 Sep 2026, 11:22 AM
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The strengthening of the nickel business and higher gold production have driven a recovery in MDKA’s profitability. The company is relying on increased contributions from the Pani Gold Mine and nickel processing in the second half of this year.
PT Merdeka Copper Gold Tbk (MDKA) posted net profit attributable to owners of the parent entity of USD 102 million in the first half of 2026, reversing a loss of USD 16 million in the same period last year. The improvement was supported by stronger performance in its nickel and gold businesses.
In a performance disclosure issued on Saturday (Sept. 26, 2026), MDKA recorded consolidated revenue of USD 1.40 billion throughout January-June 2026, up 64% from USD 855 million in the first half of 2025. In line with this, the company’s EBITDA surged 191% to USD 512 million from USD 176 million.
The nickel business through PT Merdeka Battery Materials Tbk (MBMA) was MDKA’s largest EBITDA contributor. Its performance was supported by higher nickel ore sales volumes and prices, as well as contributions from High-Grade Nickel Matte (HGNM), Nickel Pig Iron (NPI), and acid products.
In the gold business, increased operational contributions also strengthened the company’s profitability. PT Merdeka Gold Resources Tbk (EMAS) is projected to increase its contribution in the second half of 2026 as Pani Gold Mine production ramps up.
MDKA President Director Albert Saputro said the improved performance in the first half of 2026 reflected stronger profitability across the company’s operating portfolio.
“Our focus remains on disciplined execution, operational efficiency, and advancing the Group’s key growth projects to strengthen long-term value creation,” Albert said.
Gold and Nickel Production Increase
Merdeka Group’s gold production increased 32% year-on-year to 66,814 ounces in the first half of 2026. The Tujuh Bukit Gold Mine contributed 49,402 ounces, while the Pani Gold Mine produced 17,412 ounces after commencing operations this year. Meanwhile, gold sales rose 3% to 61,561 ounces.
In the nickel business, MBMA produced 15.2 million wet metric tons (wmt) of nickel ore, up 121% year-on-year. Sales volume grew 60% to 12.4 million wmt.
The company attributed the growth to higher equipment utilization, transportation efficiency, and productivity at its main mining areas.
Nickel processing performance also improved. NPI production and sales each grew 20%, supported by more stable smelter operations. Meanwhile, HGNM production more than doubled, while sales increased 72%.
Relying on Pani and nickel processing
In addition to optimizing operations, MDKA is continuing the development of several projects. The Tujuh Bukit Copper Project has entered the feasibility study stage, while the Pani Gold Mine is continuing to ramp up production and develop its Carbon-in-Leach (CIL) project.
In the battery materials segment, PT ESG New Energy Material is continuing to ramp up Mixed Hydroxide Precipitate (MHP) production. Meanwhile, PT Sulawesi Nickel Cobalt is advancing its High Pressure Acid Leach (HPAL) project, which is targeted to commence production in the second half of 2026.
MDKA expects the Pani Gold Mine’s contribution to increase in the second half of this year, in line with higher mining rates, ore stacking volumes, and gold recovery rates in its heap leach operations.
In the battery materials business, the company will increase nickel ore volumes, maintain its NPI and HGNM production targets, and drive higher HPAL operating levels.
Despite the improvement in first-half performance, MDKA continues to monitor commodity price movements, fuel and energy costs, exchange rates, and regulatory changes that could affect performance through year-end. The company said it will focus on achieving production targets, maintaining cost discipline, and ensuring measured capital allocation to support operations and project development.
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