New Stock News | Indonesia's MGR Files for Listing on Hong Kong Stock Exchange as One of Asia's Top Pure Gold Producers.

According to the disclosure by Hong Kong Stock Exchange on March 20th, PT Merdeka Gold Resources Tbk (abbreviated as MGR) has submitted its listing application to the main board of the Hong Kong Stock Exchange, with UBS and CITIC SEC as its joint sponsors. Company Overview The prospectus shows that MGR is a gold mining company listed on the Indonesia Stock Exchange and is one of the top pure gold producers in Asia. With the Pani gold mine as its backbone, according to CRU data, based on resource and reserve benchmarks, this project is Indonesia's largest native gold mine, and MGR is expected to rank among the top two native gold mines in Asia by production volume by 2030. MGR is uniquely positioned with its reserve base supporting future resource potential, the world's lowest average strip ratio, and a rapid production capacity ramp-up curve that can achieve peak production in a short time. The company has leveraged Indonesia's excellent natural resources and the key importance of the mining industry in national economic development. By utilizing the company's competitive advantages in mine scale, operational efficiency, technology, future growth opportunities, and resource potential, the company is emerging as a regionally significant gold producer. MGR is a subsidiary of MCG, an excellent Indonesian mining group that has been listed on the Indonesia Stock Exchange since June 2015. MCG has a solid track record in developing and operating large low-cost mines, including the Tujuh Bukit gold mine in East Java. Furthermore, MCG's additional track record includes operational experience through Sulawesi Cahaya Mineral (SCM) mine, which is a controlled subsidiary of PT Merdeka Battery Materials Tbk (MBM), which is also a majority indirectly-owned subsidiary of MCG. SCM successfully increased its production capacity between 2024-2025, demonstrating MCG's ability to execute large-scale mining projects of different minerals and manage operational capacity enhancements. Additionally, MGR indirectly obtains support from Indonesia's two most respected investment groups - PT Provident Capital Indonesia (PCI) and PT Saratoga Investama Sedaya Tbk (SRTG) through MCG. These groups bring decades of experience in establishing and expanding billion-dollar listed companies, while ensuring excellent corporate governance, rigorous capital allocation, long-term value creation, and a deep understanding of Indonesia's regulatory, economic, and operational environment. Financial Information Revenue For the years 2023, 2024, and 2025, the company achieved revenues of approximately 1.394 million USD, 1.75 million USD, and 1.32 million USD, respectively. Gross Profit For the years 2023, 2024, and 2025, the company's gross profits were approximately 458,000 USD, 570,000 USD, and -146,000 USD, respectively. Industry Overview According to the 2026 U.S. Geological Survey (USGS) Mineral Commodity Summaries, global gold mine reserves are estimated at 2,109.1 million ounces (65,600 tons) based on gold metal content. Large gold reserves are concentrated in a few countries, with the top 6 countries accounting for over half (61.0%) of all gold reserves. Australia has the largest reserves, accounting for 19.8% of the global total, with 418.0 million ounces (13,000 tons), followed by Russia at 18.3% of the global total, or 385.8 million ounces (12,000 tons). South Africa ranks third, with substantial reserves of 160.8 million ounces (5,000 tons), accounting for 7.6% of the global total. In Asia, Indonesia has the highest reserves, with 115.7 million ounces (3,600 tons), accounting for 5.5% of global reserves. In the Americas, Canada has the largest reserves, with 102.9 million ounces (3,200 tons), representing approximately 4.9% of the global total. In 2020, due to a decline in jewelry industry demand, total gold manufacturing demand was 66.4 million ounces (2,066 tons). However, from 2021 to 2024, manufacturing demand quickly rebounded and fluctuated between 81 to 92 million ounces (2,519 to 2,862 tons). In the medium term, manufacturing demand is expected to decrease to the 2020 level and fluctuate between 65 to 69 million ounces (2,022 to 2,146 tons). The expected decrease in manufacturing demand is due to escalating geopolitical tensions and potential tariffs increasing investment demand, thereby supporting price increases; while higher prices may suppress price-sensitive jewelry demand. From a regional perspective, China and India have always been the two largest consumers of gold manufacturing, consuming approximately 13.6 million ounces (421.8 tons) and 11.9 million ounces (370.8 tons) of global gold manufacturing in 2020. Despite a subdued global manufacturing demand in 2020 due to disruptions caused by Covid-19, it quickly recovered, with India surpassing China in 2021 with a leading gold manufacturing demand of 22.1 million ounces (687.0 tons). The majority of this came from India's jewelry industry, which recorded a peak of 19.6 million ounces (610.9 tons) in 2021. Although global manufacturing demand fell back to 2020 levels by 2025, India still maintains its position as the world's largest gold manufacturing consumer, accounting for 25.4% of global manufacturing demand, followed closely by China at approximately 16.2%. In 2025, North America and Western Europe together accounted for approximately 17.8% of global gold manufacturing demand. Looking ahead to 2030, it is expected that India and China will continue to dominate in terms of gold manufacturing demand, accounting for a combined 42.4%. Board of Directors The board of directors will consist of 4 directors. Equity Structure Intermediary Team Joint Sponsors: UBS Securities Hong Kong Limited, CITIC SEC (Hong Kong) Limited Company's Legal Counsel: For Hong Kong and U.S. law: Skadden Arps; For Indonesian law: Assegaf Hamzah & Partners Legal Counsel of Joint Sponsors: For Hong Kong and U.S. law: Freshfields Bruckhaus Deringer; For Indonesian law: Hiswara Bunjamin & Tandjung Reporting Accountants and Independent Auditors: Hong Kong Deloitte Touche Tohmatsu Industry Consultant: CRU International Limited