Indonesian mining firm PT Merdeka Copper Gold (MDKA), affiliated with prominent businessman Garibaldi “Boy” Thohir, reported a net loss of US$3.73 million (Rp60.52 billion) in the first quarter of 2025, a 75.5 percent improvement compared to the same period last year when losses reached US$15.22 million.

The reduced loss comes despite a 7.2 percent year-on-year decline in revenue, which dropped from US$541.05 million in Q1 2024 to US$502.16 million this year. The majority of the company’s income came from the sale of gold, silver, copper cathodes, nickel pig iron (NPI), nickel matte, and limonite ore, totaling US$500.32 million. Of this revenue structure, domestic sales accounted for US$368.89 million, while exports contributed US$134.25 million.

MDKA also reported a negative hedge realization of US$2.81 million, while other income streams, primarily from third parties, added US$1.83 million.

The company’s top three clients − PT Indonesia Tsingshan Stainless Steel (US$181.85 million), PT CNGR Ding Xing New Energy (US$134.72 million), and HSBC’s Precious Metals Global Markets (US$109.94 million) − collectively contributed US$426.51 million, or more than 84 percent of total sales.

MDKA’s Pani Gold Project in Gorontalo remains on schedule, with 49 percent of construction completed by the end of Q1 2025. Detailed engineering has been finalized, core construction contracts signed, and contractors are now mobilized on-site. The latest resource modeling suggests further optimization potential.

The company targets commissioning by the end of 2025, with first gold production anticipated in early 2026.

“We continue to make consistent progress across our core business segments and have achieved key milestones in our strategic projects,” MDKA President Director, Albert Saputro, said on Tuesday, July 1, 2025. “Merdeka remains committed to long-term, responsible growth while adapting to the evolving opportunities and challenges in 2025 and beyond.”

Once operational, the Pani project is expected to reach a peak annual production capacity of 500,000 ounces of gold.