AMMN – Acquires 100% stake in Medco Sumbawa Gas

AMMN – Acquires 100% stake in Medco Sumbawa Gas Amman Mineral Internasional (AMMN) has acquired a 100% stake in Medco Sumbawa Gas from Medco Power Indonesia. Medco Sumbawa Gas is a company specializing in LNG terminal, storage, and regasification facilities. The acquisition was made at a price of IDR2.5 bn, as reported in AMMN's financial statement. Medco Power's financial report reveals that Medco Sumbawa Gas (MSG), wholly owned by Medco Power, is primarily engaged in power generation. MSG's total assets amounted to IDR384.67 bn as of 30 June 2023, nearly doubling from its position on 31 December 2022, at IDR199.34 bn. However, MSG had not yet commenced operational activities by 2Q23. Meanwhile, Amman Mineral is Indonesia's second-largest copper and gold mining company, operating the Batu Hijau mine on Sumbawa Island, West Nusa Tenggara. With a concession area covering 25,000 ha and gold reserves of 23.9 mn ounces and copper reserves of 17.54 bn pounds, Amman Mineral reported a net profit of USD118.8 mn or approximately IDR1.83 tn for 1H23, marking a 78.85% yoy decline, attributed to lower net sales on adverse weather conditions and export constraints. (Source : Investor Daily)