ICN News, Jakarta – PT Merdeka Battery Materials Tbk (MBMA), an issuer affiliated with Garibaldi “Boy” Thohir, has prepared up to Rp1.383 trillion in funds for a share buyback program. The move comes amid market fluctuations, while the company continues to strengthen its nickel production and develop an integrated battery-materials value chain.
Based on the company’s official disclosure, MBMA will allocate a maximum of Rp1.383 trillion, including brokerage and transaction costs, to repurchase up to 1.465 billion shares. The buyback period runs from September 17 to December 16, 2026, and may be carried out in stages or in a single transaction.
Management stated that the buyback is intended to help maintain the stability of MBMA’s share price and strengthen investor confidence, allowing the company’s share price to more fairly reflect its fundamental value.
Strong Nickel Production Growth
The buyback comes as MBMA continues to record significant operational growth. During the second quarter of 2026, saprolite ore production from the Sulawesi Cahaya Mineral (SCM) operation reached 2.9 million wet metric tonnes (wmt), up 130% year on year. Limonite production also increased 87% to 4.7 million wmt.
Nickel production in the form of nickel pig iron (NPI), including low-grade nickel matte (LGNM), reached 19,505 tonnes of nickel (tNi), an increase of 16% from 16,748 tNi in the same period of 2025.
MBMA also recorded stronger cash margins. Saprolite cash margin reached US$26.7 per wmt, compared with US$1.0 per wmt in the previous-year period. Limonite cash margin stood at US$10.4 per wmt, up 135% year on year, while NPI cash margin increased 11% to US$1,981 per tNi. The average selling price of NPI also rose 28% year on year.
Meanwhile, PT Acid Iron Metal (AIM), MBMA’s acid plant, produced 258,060 tonnes of sulfuric acid during the second quarter, with sales reaching 383,177 tonnes.
Progress on the HPAL Project
MBMA is also advancing its high-pressure acid leach (HPAL) development through PT Sulawesi Nickel Cobalt (SLNC). The project is designed to have an annual production capacity of 90,000 tonnes of nickel.
By the second quarter of 2026, construction had reached the substantial-completion stage. MBMA is targeting its first mixed hydroxide precipitate (MHP) production in the second half of 2026, followed by a gradual ramp-up toward full production capacity by year-end.
The company is also targeting high-grade nickel matte (HGNM) production of around 44,000–48,000 tonnes and MHP production from PT ESG of approximately 27,000–30,000 tonnes.
Strong Financial Performance
MBMA’s operational expansion has been accompanied by improved financial performance. In the first quarter of 2026, the company recorded revenue of Rp7.67 trillion, up 26.3% from Rp6.07 trillion in the same period of 2025.
Gross profit reached Rp2.10 trillion, while EBITDA stood at Rp2.41 trillion. MBMA also recorded net profit of Rp504.6 billion, compared with a net loss of Rp57.3 billion in the first quarter of 2025.
As of the end of the first quarter, MBMA had approximately Rp5.94 trillion in cash, total assets of Rp67.44 trillion and equity of Rp41.48 trillion.
Positioning for the Battery Materials Industry
The share buyback is taking place alongside MBMA’s continued expansion of its nickel operations, processing facilities and HPAL projects. With growing ore production, stronger operating margins and the development of MHP and other nickel-based products, the company is building a more integrated position within the nickel and battery-materials value chain.
The combination of operational expansion, improving financial performance and continued downstream development will remain important factors for investors and industry players in assessing MBMA’s growth trajectory.
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