Indonesian Gold Mining Operator MGR Files for Hong Kong Listing: Sits on Top-Tier Gold Mines, Not Yet Profitable But Has Commenced Commercial Gold Production

PT Merdeka Gold Resources Tbk - S (hereinafter “MGR”) recently submitted an application for listing on the Hong Kong Stock Exchange, with UBS and CITIC Securities serving as joint sponsors. This gold mining company listed on the Indonesia Stock Exchange is seeking a greater breakthrough in the Asian gold market through its core asset, the Pani Gold Mine.

According to the international mining consultancy CRU, based on resource and reserve calculations, the Pani Gold Mine is the largest primary gold deposit in Indonesia, ranking fifth in Asia for gold resources and fourth for reserves. MGR expects the mine to rank among the top two in Asia by 2030. Located in Gorontalo, this gold mine completed its first gold casting in February 2026, and the first gold sale was made the following month, marking the official start of commercial production.

Mining rights data show that the Pani Gold Mine project covers a total area of 14,670 hectares, with the core mining rights area spanning 135 hectares. Proven mineral resources amount to 291.5 million tons, with an average gold grade of 0.75 grams per ton, containing 218.6 tons of gold; ore reserves are 203.1 million tons, with a gold grade of 0.79 grams per ton, containing 160.5 tons of gold. Planned over a 15-year mining cycle, the mine’s peak annual production could reach 545,000 ounces.

Financial data indicate that from 2023 to 2025, MGR’s operating revenue was $1.394 million, $1.75 million, and $132,000, respectively, with net losses continuing to widen to $6.837 million, $12.7 million, and $27.49 million during the same period. Before commercial production, the company’s income mainly came from leasing heavy equipment to related parties to support other mining development and preparation activities.

In terms of sales channel development, MGR’s subsidiary PETS signed a two-year gold purchase and sale agreement with Indonesia’s state-owned mining company ANTAM in February 2026, with a total transaction volume of 3 tons (about 100,000 ounces). Under the agreement, PETS will supply refined gold grains to ANTAM, with the first transaction completed in March 2026.

Shareholding structure shows that the Indonesian listed company MDKA.IDX holds approximately 63.33% of MGR through its holding company MCG, establishing an absolute controlling stake. If the Hong Kong IPO is successful, it will provide significant capital support for MGR to expand into the Asian market and enhance its international influence.