Antam reports lower Q2 nickel, gold production

JSX-listed state nickel and gold miner PT. Aneka Tambang Tbk. reported pon Monday that produced 2,157 tonnes of contained nickel in ferronickel during the second quarter of 2004, plus an additional 200 tonnes via toll smelting. Production of ferronickel increased 22 percent compared to the previous quarter, but decreased 10 percent over the same period last year. Antam produced 4,286 tonnes of contained nickel in ferronickel in the first half of the year, a 3 percent decrease compared to first half 2003.

Antam said its FeNi II smelter underwent a full overhaul in August 2004 for 4 ? 5 months, which will reduce production by about 2,000 tonnes and lower annual ferronickel production by 10 percent compared to last year.

Ferronickel sales decreased 40 percent in 2Q04 over the previous quarter, a 62 percent decrease compared to 2Q03, to 1,153 tonnes of contained nickel in ferronickel. However, 735 tonnes of contained nickel in ferronickel that was shipped from Pomalaa at the end of the quarter had not been recognized as sales as it was on transit to the port of delivery. The average realized nickel price, which is based on the spot price on the London Metal Exchange (LME), remained flat at USD6.21/lb.

Antam also reported that during the second quarter of 2004 gold production was below expectations, decreasing 1% to 834 kg, or 22% lower compared to the same quarter last year. Gold production was expected to have normalized in the second quarter following a fire in the fist quarter, which disrupted a portion of the mining activities for two weeks.

Despite lower production, gold sales increased 69% to 1,111 kg, while sales of silver increased 20% to 6,690 kg. Sales of gold exceeded production as the Logam Mulia refinery, which handles gold marketing, increased gold sales in second quarter in line with expectations at that time of lower future gold prices due to a strengthening of US Dollar. The average gold sales price reached USD410.44 per t.oz, a 2% decrease over 1Q04 but an 18% increase compared to the same period of last year. (alex/hotma)