Giant Mining DOID Invests $62 Million in Australia’s 29Metals to Strengthen Portfolio

JAKARTA, RAKYAT NEWS – The Indonesian PT Delta Dunia Makmur Tbk (DOID) reported a significant financial setback for the first half of 2024, with losses reaching $26.58 million or approximately IDR 432.03 billion. The company’s performance was negatively impacted by the weakening of the Indonesian Rupiah and extreme weather conditions, according to Director Dian Andyasuri during a public presentation in Jakarta on Tuesday (10/12).Andyasuri highlighted that the company’s EBITDA also experienced a 9% year-on-year (YoY) decline. “The drop was primarily due to extreme weather conditions in both Indonesia and Australia,” she stated. Despite the challenges, Andyasuri expressed optimism for the coming year, attributing this to successful acquisitions that are expected to boost performance.

“Our disciplined approach to acquisitions positions us well for the future. We are confident these investments will make significant contributions,” Andyasuri added. DOID’s focus on strategic expansion aligns with its long-term goals of diversification and resilience.

One of the key milestones for the company this year was an investment through its subsidiary, Bukit Makmur Mandiri Utama Pte. Ltd. (BUMA Singapore), in the Australian mining firm 29Metals Limited. The investment totaled AUD 62 million (approximately IDR 637.36 billion), providing DOID with 19.9% minority rights in 29Metals.

The transaction involved acquiring 229.9 million newly issued shares at AUD 0.27 per share. This move was part of 29Metals’ AUD 180 million fundraising initiative, giving DOID significant influence, including the ability to appoint one non-executive director to the 29Metals board. If DOID’s ownership exceeds 20%, it may nominate a second non-executive director.