MDKA 2015: SARATOGA’S VALUABLE INVESTMENT

 Company analysis

Merdeka copper gold tbk was established in 2012 with four subsidiaries that operates in mining project in Banyuwangi regency. Subsidiaries comprise Bumi Suksesindo, Damai Suksesindo, Cinta Bumi Suksesindo and Beta bumi suksesindo. Both Bumi suksesindo and Damai Suksesindo hold license for operation production of mining. The main business of the company is gold mining.

The location of its gold mining is located at banyuwangi regency, east java. The project was named as Tujuh bukit project.

Based on its annual report in 2015, Tujuh Bukit project is categorized as one of top world ranked undeveloped porphyry copper and gold deposits. The project comprises heap leach project and Porphyry project. The heap leach project is predicted to produce product in final quarter of 2016. It is also using open cut mining system with low stripping ratio 0,6: 1 (waste to ore ratio).

Based on its information at its web, the company claimed the heap leach project will be able to produce 97,500 oz gold per year with 9 years reserve mine life. This project is calculated capable to generate income more than USD 1 billion in 9 years with NPV more than USD 250 million

Another project, porphyry project is predicted containing 1,900 Mt @ 0.45 % cu, 0.45 g/t au and 90 g/t Mo. Its upper high grade zone is predicted containing 260 Mt with @0.8 % cu, 0.8 g/t Au and 160 g/t mo. porphyry project has more than 25 years mine life.

In 2015 the company was not producing any product yet, it has been operating its mining operation and at least it will start to produce the product at final quarter of 2016 as it mentioned at above.

Key Person

The company’s ownership is dominated by Saratoga group, Garibaldi Boy Thohir and provident group. Saratoga group is well known company in managing company that run in mining sector such as Adaro group. Mr. Edwin Soeryadjaja also hold position as vice president commissioner at Merdeka Copper Gold.

The board of commissioner is also fulfilled by mr. AM Hendropriyono, Mrs. Yenny Wahid (son of former president Gus Dur) and Mr. Boy Thohir who is also shareholder of Adaro Group and Surya Essa Perkasa.

Saratoga group is commanded by the heir of Saratoga Group, Mr. Michael Soeryadjaja who is also fulfilled position of Director at Merdeka Copper Gold. For CEO position, it has appointed Mr. Adi Ardiansyah as CEO of the company.