KONTAN.CO.ID - JAKARTA. PT Amman Mineral Internasional Tbk (AMMN) is entering a new phase of growth following the completion of a major operational transition and the increasing contribution of its downstream business, according to a research report released by BRI Danareksa Sekuritas on June 29, 2026.

In its maiden coverage of the mining company, BRI Danareksa assigned a Buy recommendation with a target price of Rp 6,000 per share, citing recovering production at the Batu Hijau mine and the start of commercial output from its smelting and precious metals refining facilities.

The brokerage noted that AMMN's transition period related to the development of Batu Hijau Phase 8 is nearing completion, creating conditions for stronger operational and financial performance from 2026 onward.

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“AMMN is entering a significant earnings growth cycle in 2026 after going through the transition period of Batu Hijau Phase 8 development,” BRI Danareksa said in a research report, according to a company press release dated Wednesday, July 1, 2026.

The recovery became evident in the first quarter of 2026, when fresh ore mined reached 38 million tonnes, compared with around 1 million tonnes in the same period a year earlier. The increase helped boost concentrate production to 167,800 dry metric tonnes (dmt), up 110% year on year.

The concentrate contained approximately 101 million pounds of copper and 136,000 ounces of gold, reflecting a sharp improvement in mining activity as operations at Batu Hijau ramped up.

BRI Danareksa estimates AMMN's revenue could reach about US$4 billion in 2026, representing a 117% increase from the previous year. EBITDA is projected to rise by 97% to around US$2 billion, supported primarily by higher production volumes.

Beyond mining operations, the brokerage highlighted the company's ongoing shift toward downstream processing. During the first quarter of 2026, AMMN's smelter and Precious Metal Refinery (PMR) produced approximately 27,700 tonnes of copper cathode and 66,200 ounces of refined gold.

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The company is transitioning from a concentrate exporter into an integrated metals producer, with future revenue increasingly driven by sales of refined copper and gold products. The shift gained further significance after the expiration of AMMN's concentrate export permit in April 2026, making domestic processing facilities a key component of its business model.

BRI Danareksa also pointed to the near-completion of a new processing facility that is expected to begin receiving ore in the second half of 2026. Once operational, the facility is projected to more than double processing capacity from around 40 million tonnes to approximately 85 million tonnes annually.

The expanded capacity is expected to support future production growth at Batu Hijau while also laying the groundwork for the development of the Elang project, which is viewed as a potential long-term growth driver.

Looking beyond company-specific factors, the report noted that copper market fundamentals remain supportive.

Demand is increasingly being driven by electrification, artificial intelligence-related data centers, electric vehicles, and renewable energy infrastructure, while supply growth remains relatively constrained.

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Gold prices are also expected to remain supported by continued purchases from central banks seeking to diversify foreign exchange reserves.

Taken together, the recovery of Batu Hijau operations, the growing contribution from downstream activities, and the upcoming capacity expansion position AMMN for stronger growth in the coming years, according to the report.