Shares of PT Darma Henwa Tbk (DEWA.JK) tumbled 7.9% to IDR 304 on October 15, their steepest single-session drop in months, after reports confirmed that exploration drilling at the company's Gayo gold-copper project remained completely halted — no new meters drilled in the entire third quarter — because a subsidiary's exploration permit had not been renewed. Darma Henwa's Gold-Copper Dream Hits a Permit Wall — How Long Can Investors Wait for Gayo to Deliver?
Shares of PT Darma Henwa Tbk (DEWA.JK) slid 7.9% to IDR 304 on October 15, marking their sharpest single-day fall in weeks, after the market fully digested a disclosure that exploration at the company's flagship Gayo gold-copper project in Aceh had ground to a complete halt. The stoppage has persisted since March 8, 2026, because the mining license (known locally as an IUP) for subsidiary PT Gayo Mineral Resources has not been renewed through the end of Q3. A weak Jakarta Composite, down 1.33% on the day, amplified the selling.
Seven Months of Zero Drilling Is Not a Minor Setback. During the entire third quarter, Gayo Mineral Resources drilled no new meters. Cumulative drilling remains frozen at 31,485 meters across 102 holes — unchanged since June.
The drilling program was originally scheduled to run from February 2026 through June 2027, and that timeline is now visibly slipping. Every idle month delays the resource estimate needed to justify a mine-build decision.
Spending Continues Even Without Progress Underground. GMR still booked IDR 14.51 billion in exploration costs during Q3 — money spent on site support, data systems, and preparatory work rather than actual drilling. Meanwhile, the project has also been hampered by natural disasters on top of the permit issue. That means cash is going out the door with no new geological data coming back, eroding return on invested capital.
Core Mining Services Are Healthy — But That's Already Priced In. DEWA's first-half 2026 net profit jumped 89% year-on-year to IDR 354.3 billion , and revenue reached IDR 3.21 trillion, up 3%, with a gross margin of 20.7%.
In-house fleet utilization rose to 89%, signaling improved efficiency in the base business. But the stock had already surged over 900% since late 2024 partly on Gayo hopes, so the permit stall directly undermines the growth story that justified the premium.
The Next Catalyst Is a Permit, Not an Earnings Beat. SRK Consulting completed its first site visit in September 2026 for a JORC-compliant resource audit — an independent assessment of mineral reserves. Management says it will accelerate the IUP extension and pursue an upgrade to an operating-production license , but offered no firm date. The next earnings report lands December 2, 2026. Until the permit clears, the Gayo project is a cost center, not a catalyst — and the stock's valuation premium hangs on that distinction.