JAKARTA – The growth trajectory of mining companies has been facing several challenges, especially leading up to the end of 2024. However, there are still opportunities to boost performance in the coming year.

Companies like PT Adaro Minerals Indonesia Tbk (ADMR) are currently involved in the construction of an aluminum smelter in Kalimantan in collaboration with PT Kalimantan Aluminium Industry (KAI). By the end of last year, ADMR had injected IDR 918 billion into this project.

This processing facility is expected to increase ADMR's aluminum production volume by 500,000 to 1.5 million tons, with the smelter construction targeted for completion this year.

In terms of financial performance, ADMR's revenue increased by 17% year-on-year (yoy) to USD 841 million in the first nine months of 2024 (9M 2024). Additionally, the company's net profit soared by 33% yoy, reaching USD 333 million.

ADMR remains optimistic about its sales volume, with projections reaching 5.2 million tons for 2024. For 2025, sales volume is expected to grow to 6.3-6.6 million tons.

"This strengthens its fundamentals, leading to a BUY recommendation for ADMR, with a target price of IDR 1,450," stated PT Ina Sekuritas Indonesia in its research.

Meanwhile, PT Merdeka Copper Gold Tbk (MDKA) posted a USD 67 million loss, despite its revenue growing by 42.5% yoy in the first nine months of 2024 (9M 2024). A surge in financial expenses by 22% yoy, along with other costs, pressured MDKA's profit margins.

Despite the losses, Ina Sekuritas Indonesia remains optimistic about MDKA's prospects, particularly with the 65% increase in gold reserves at the Bukit Tujuh project. "This increase in reserves will extend the mine’s life by 1.5 years," the research noted.

Like ADMR, MDKA also received a BUY recommendation from Ina Sekuritas Indonesia, with a target price of IDR 2,560. (KR)

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