As policy uncertainty gradually eases, we are becoming increasingly constructive on the coal, CPO, and metals sectors, particularly as valuations have already been significantly discounted by earlier regulatory concerns. Within the metals space, AMMN remains our top pick, supported by its position as Indonesia's largest listed copper producer and its strong exposure to the emerging AI-driven copper supercycle.

Copper demand is expected to accelerate alongside the rapid expansion of AI data centers, power grids, and high-voltage transmission infrastructure. AI-related infrastructure is estimated to require up to seven times more copper than conventional data centers, creating a compelling long-term demand outlook for copper producers.

Over the medium term, Phase 8 at Batu Hijau remains the key earnings catalyst for AMMN. Higher ore grades, the addition of a new concentrator line, and increasing utilization of the company's new copper smelter are expected to drive a meaningful increase in copper and gold production while supporting stronger operating profitability.

Looking further ahead, the Elang project represents AMMN's next major growth engine. As one of the world's largest undeveloped copper-gold deposits, the project is targeted to commence operations in 2031, extending AMMN's production growth well into the next decade. We believe its development timeline is well aligned with the expected structural growth in copper demand, driven by continued AI investment and the global expansion of electricity networks, reinforcing AMMN's long-term investment appeal.