Antam reports decrease in Q2 ferronickel production

IDX-listed state nickel and gold miner PT Aneka Tambang Tbk reported on Monday that its second quarter ferronickel production dropped by 33% to 2,786 tonnes compared to last year?s same quarter.

The company said the reduction was due to the shutdown of FeNi III smelter in May after Antam accelerated the optimisation program of the smelter.

The average selling price of ferronickel decreased 55% compared with the same period last year, to US$5.66 per lb.

Antam expects commercial operation of FeNi III will begin in September 2009.

The company also reported that production of high grade nickel ore reached 913,206 wet metric tons (wmt), a 27% decrease compared to 2Q08. During the quarter, Antam produced 863,869 wmt of low grade nickel ore. Production of low grade ores was 39% higher compared to the same quarter last year.

Meanwhile, the company reported that production of gold reached 644 kg, an increase of 12% on higher gold grades, while silver production reached 5,544 kg, a 3% decrease over last year?s second quarter.

During the quarter Antam?s sales revenue decreased by 44% compared to the same quarter last year to Rpl ,755 billion (US$=Rp.9,950) largely due to lower sales volume and sales price of Antam?s main commodity of nickel. Despite lower sales volume and price, the nickel segment was Antam?s biggest contributor to sales, amounting to 70% or Rpl,231 billion, while sales from the gold segment, amounted to 29% or Rp508 billion. In the first half of 2009, Antam?s sales revenue reached Rp4,397 billion, a 16% decrease compared to 1 H08. In 1 H09, due to strong gold sales during the first quarter of 2009, gold was Antam?s biggest contributor to total sales with a 58% contribution. Ferronickel was the second largest contributor with a 21 % contribution while nickel ore was the next largest contributor with a 16% contribution.(alex)