Shares of mining company PT Merdeka Gold Resources (EMAS) surged 25 percent on their trading debut at the Indonesia Stock Exchange (IDX) on Tuesday, September 23, 2025 closing at Rp3,600, although the gold-focused subsidiary of PT Merdeka Copper Gold (MDKA) is still recording losses.

EMAS Director Albert Saputro cited that several factors drove the company’s decision to go public despite being unprofitable. The first was the continued rally in global gold prices, which provided strong momentum. The second was the strategic move to establish Merdeka Gold as a locally focused, pure-play gold company.

“Of course, the gold price is a major factor. But the second point is that this company will purely focus as a local gold player,” Albert said at the IPO press conference at the IDX Main Hall, on Tuesday, September 23, 2025.

He added that the restructuring would make Merdeka’s businesses more transparent. EMAS will operate independently as the group’s gold mining entity, while other commodities such as copper will be managed separately. This, he said, will allow investors to better assess the performance of each business line.

IPO proceeds allocation

According to the IPO prospectus, funds raised will be used for capital expenditure (capex) through 2024. Key allocations include:

US$20 million (Rp328.4 billion) in staged equity injections into PT Pani Bersama Tambang (PBT) for working capital, including raw materials, electricity costs, and employee salaries. After the conversion, EMAS will continue to hold 99.99 percent ownership of PBT.

US$20 million (Rp328.4 billion) in loans to PT Puncak Emas Tani Sejahtera (PETS) to support operational working capital.

The remaining funds will be used for early repayment of loans owed to parent company MDKA, which date back to an intercompany loan agreement in April 2022. As of August 4, 2025, EMAS’s outstanding debt to MDKA stood at US$260 million (Rp4.26 trillion).

Dividend policy

Albert noted that EMAS’s dividend distribution policy is consistent with its IPO prospectus, with dividends expected to begin only in 2032. For now, the company remains in the development stage of the Pani Gold Mine and has yet to generate revenue.

“Recommendations, determination of the amount, and distribution of dividends will be proposed by the Board of Directors and approved by the Board of Commissioners at their discretion. However, the company plans to begin dividend payments in 2032,” EMAS management stated in the prospectus, on Tuesday, September 23, 2025.