Amman Mineral International (AMMN) has reported an extraordinary financial turnaround, recording a substantial net profit of US$338 million in the second quarter of 2026. This monumental achievement marks a staggering 111% quarter-on-quarter increase and dramatically reverses a US$10 million loss from the same period last year. The momentum carried through, boosting its first-half 2026 net profit to an impressive US$498 million, aligning perfectly with analyst expectations and solidifying AMMN’s position as a dominant force in the global mining landscape.
Smelter Powerhouse: Elevated Gold Targets and Copper Cathode Ambition
AMMN’s management confidently raised its gold in concentrate production guidance by a remarkable 34%, from 579 thousand ounces (koz) to 775 koz. This upward revision stems from an unexpectedly higher gold grade in the processed ore, demonstrating robust operational efficiency. Furthermore, the company unveiled new, ambitious guidance for its downstream products: 130 thousand tonnes (kt) of copper cathodes and 350 koz of gold dore. This pivot reflects management’s strong confidence in the smelter’s capabilities, especially after its successful performance guarantee test in July 2026 and the official handover from contractors. Early indicators for 3Q26 are already promising, with the smelter achieving record-breaking operational performance through July and August.
Batu Hijau’s Bedrock: Enhanced Reserves and Strategic Supply Mastery
Despite a marginal dip in total material mined, AMMN’s mining operations at Batu Hijau showed remarkable quality improvements. Ore production soared to 66 million tons in 1H26, a significant leap from just 6 million tons in 1H25, primarily driven by mining high-grade ore in Phase 8. This strategic move effectively slashed the stripping ratio to approximately 0.9x. While the concentrator processed 20 million tons of ore, the surplus generated a substantial ore inventory buildup, acting as a crucial long-term supply buffer for the company’s smelter. Bolstering this robust foundation, AMMN updated its JORC report as of June 30, 2026, revealing a 10.2% increase in Batu Hijau’s ore reserves to 777 million tons. This expansion largely attributes to a revised, higher gold price assumption of US$2,500/oz (up from US$1,800/oz in 2024), while the copper price assumption remained steady at US$4/lb. This reserve upgrade extends the Batu Hijau mine’s life from 2030-2031 to 2031-2032, paving the way for a seamless transition to the Elang mine thereafter.
A Strategic Pivot: From Concentrate Exports to Smelter-Driven Value
AMMN recently executed its final concentrate export in April 2026, shipping 120,079 dmt containing approximately 72 million pounds of copper and 120,667 ounces of gold. This last shipment strategically capitalized on high gold prices, securing sales at an attractive level of around US$4,900/oz before the export permit expired. Going forward, AMMN is turning a new page, with all future sales exclusively originating from its state-of-the-art smelter operations. This strategic pivot ensures the company will deliver higher-value refined products, primarily copper cathodes, gold dore, and other valuable by-products such as silver and sulfuric acid, solidifying its position further up the value chain.