The outlook for PT Merdeka Copper Gold Tbk (MDKA) is expected to improve this year. Previously, MDKA suffered a surface shift at the heap leaching site of the Tujuh Bukit gold mine in September 2020, resulting in a shortage of production and a decline in sales in 2020.
Kiwoom Sekuritas Indonesia analysts Ike Widiawati and Michelle Abadi said the repair of the heap pads is expected to be completed by the end of the second quarter of 2021 and is expected to be operational in the third quarter of 2021. As a result, gold production in 2021 is estimated at 98585 ounces, still revised by 37 per cent compared with gold production in 2020.
Kiwoom Sekuritas estimates that gold production is expected to return to normal by 2022. The average price of gold is expected to remain in the range of $1700 per troy ounce-$1850 per troy ounce.
At the same time, copper is expected to reach the same level of production in the second quarter. Ike Widiawati and Michelle Abadi expect MDKA to produce 9722 tonnes of copper this year, up from just 5377 tonnes in 2020.
