PEFINDO has affirmed its idA+ ratings to PT Merdeka Copper Gold Tbk
Wednesday, October 8 2025 - 06:18 PM WIB
(October 7, 2025)--PEFINDO has affirmed its idA+ ratings to PT Merdeka Copper Gold Tbk (MDKA) as well as its outstanding Shelf-Registered Bond III, Shelf-Registered Bond IV, and Shelf-Registered Bond V. Outlook for the corporate rating is stable.
The corporate rating reflects MDKA’s vertically integrated operations, well-diversified business, and sizeable reserves and resources. The rating is constrained by its moderate financial policy and capital structure as well as exposure to fluctuating commodity prices.
The rating may be raised if MDKA successfully operates its new projects and generates higher revenue or EBITDA than projected, which will positively impact its financial figures and further improve its financial profile. The rating may be lowered if MDKA generates lower revenue or profit margins than projected due to underperforming new projects and aggressively finances its capital expenditure with substantial debt without being compensated by a higher revenue or EBITDA, which may trigger a more aggressive capital structure. A significant deterioration of the commodity prices, particularly nickel, gold, and copper, may also trigger a rating downgrade, as this will adversely affect its financial profile and may increase the Company’s dependency on its financial flexibility to refinance its loans.
MDKA is engaged in mining activities and downstream nickel products. The Company has several projects located in Tujuh Bukit at Banyuwangi and Pani at Gorontalo for gold mining, Wetar Island, Maluku, for copper mining, Konawe at Southeast Sulawesi for nickel mining, and the Acid Iron Metal (AIM) project, Rotary Kiln Electric Furnace (RKEF) smelters, and nickel matte smelter at Indonesia Morowali Industrial Park, Central Sulawesi. As of June 30, 2025, its shareholders consisted of PT Saratoga Investama Sedaya Tbk (20.34%), PT Mitra Daya Mustika (11.88%), Garibaldi Thohir (7.46%), PT Suwarna Arta Mandiri (5.51%), and others, including the public and treasury shares (54.81%). (ends)