PT Amman Mineral Internasional Tbk. (AMMN) is poised for stronger long-term earnings as downstream processing reshapes its business, with higher-value copper cathode and refined gold expected to drive growth, BRI Danareksa Sekuritas said.
The brokerage said AMMN’s copper smelter and Precious Metal Refinery (PMR) produced about 27,700 metric tons of copper cathodes and 66,200 ounces of refined gold in the first quarter of 2026.
The report, received Friday, said AMMN is shifting from a copper concentrate exporter to an integrated metals producer focused on internationally certified copper cathodes and refined gold.
Analyst Andhika Audrey Eko Nugroho said the transition would increase value-added production while improving resilience against volatility in global mining markets.
“Starting in the second quarter of 2026, after the copper concentrate export permit expired in April, earnings are expected to be driven by copper cathode and refined gold sales,” the report said.
The brokerage said AMMN’s new processing plant is nearing completion and is expected to receive its first ore feed in the second half of 2026.
The facility is projected to raise annual processing capacity to about 85 million metric tons from roughly 40 million metric tons.
The additional capacity is expected to lift production, strengthen operations at the Batu Hijau mine and support development of the Elang project as a long-term growth engine.
BRI Danareksa expects copper cathode output to rise as smelter utilization improves, while refined gold production should increase as the PMR reaches optimal operating capacity.
The report said AMMN has entered the early stage of a new growth cycle, supported by higher output from Batu Hijau Phase 8 and expanding downstream operations.
According to Andhika, the operational transition that marked 2025 is nearing completion, positioning the company for stronger financial performance from 2026.
“AMMN is entering a significant earnings growth cycle in 2026 after completing the Phase 8 transition at Batu Hijau,” the report said.
First-quarter results reflected the recovery, with fresh ore mined rising to 38 million metric tons from about 1 million metric tons a year earlier.
Concentrate production climbed 110 percent year on year to 167,800 dry metric tons, containing about 101 million pounds of copper and 136,000 ounces of gold.
BRI Danareksa forecasts Batu Hijau’s recovery will drive 2026 earnings, projecting revenue to surge 117 percent to about US$4 billion and EBITDA to increase 97 percent to roughly US$2 billion.
