Antam reports record nickel ore output
Saturday, February 1 2014 - 04:41 AM WIB
IDX-listed mining company PT ANTAM (Persero) Tbk reported a record nickel ore production of volume of 11,521,212 wet metric ton (wmt) in 2013 amid sustained high demand for the commodity.
Last year?s production was 22 percent higher than FY12 production of 9,425,617 wmt. The FY13 production figure consisted of 8,495,415 wmt of high grade nickel ore and 3,025,797 wmt of low grade nickel ore.
ANTAM's nickel ore production in 2013 was the highest in the history of the company, it said in a fourth quarter report Thursday.
The increase in nickel ore production was followed by the rise in the sales of the commodity in FY13 of 9,711,081 wmt. The sales achievement was 21 percent higher than FY12 sales of 8,004,210 wmt.
With the increase in sales volume, ANTAM's unaudited FY13 nickel ore revenue was re- corded at Rp4.05 trillion, a 32 percent increase compared to 2012 net sales of Rp3.06 trillion.
The production volume of nickel ore in 4Q13 amounted to 2,924,493 wmt with a sales volume of 2,881,414 wmt. ANTAM's net sales in 4Q13 totaled Rp1.15 trillion.
To comply with the Government regulations on domestic mineral ore processing and refining obligation, ANTAM is targeting nickel ore production of 1.44 million wmt, all of which will be used as ore feed for the ferro-nickel plants in Pomalaa.
ANTAM said that the solid nickel ore production and sales contributed to the 8 percent increase in the company?s unaudited 2013 net sales of Rp11.29 trillion, compared to the 2012 (FY12) sales figure of Rp10.45 trillion.
Ferronickel
ANTAM said the production volume of ferronickel in FY13 reached 18,249 ton of nickel contained in ferronickel (TNi) despite the switch of ANTAM?s Furnace-1 ferronickel smelter due to the construction of Pomalaa Ferronickel Plants Expansion Project (P3FP). The ferro-nickel production volume in FY13 was relatively steady compared to the FY12 production achievement of 18,372 TNi.
On the back of lower nickel price in 2013, ANTAM's management decided to lower sales level in anticipation of price recovery in 2014. ANTAM?s FY13 sales volume was recorded at 14,441 TNi with ferronickel in transit of 1,467 TNi which will be recognized in 2014. ANTAM?s 2013 sales was 28 percent lower than the FY12 sales volume of 19,530 TNi.
With the decrease in sales volume and selling price, ANTAM's FY13 unaudited ferronickel revenue was recorded at Rp2.07 trillion, with an average nickel price in 2013 of US$6.32 per pound, 17% lower than FY12 average selling price of US$7.81 per pound.
The ferronickel production in 4Q13 reached 3,956 TNi with a sales volume amounting to 2,974 TNi. The 4Q13 ferronickel net sales were recorded at Rp352 billion.
Along with the expectation of nickel price improvement in 2014 and as an anticipation of the Indonesian mineral ore export ban, ANTAM plans to increase its ferronickel sales volume to 20,000 TNi in 2014 or 38 percent higher than 2013 sales. Production volume of ferro-nickel in 2014 is targeted at 18,000 TNi. In addition, ANTAM is expediting the completion of its P3FP in 2014.
Gold
Meanwhile, the production volume of gold in FY13 amounted to 2,562 kg (82,370 oz) consisting of the 1,722 kg (55,364 oz) from the Pongkor mine and the remaining 840 kg (27,007 oz) of the gold from the Cibaliung mine. The production level was an achievement given the decreasing grade of the gold ore at the Pongkor mine and the mining challenges at the Cibaliung mine, all of which were uncontrollable factors. ANTAM?s 2013 gold production was 11% lower compared to 2012 gold production of 2,874 kg (92,401 oz).
ANTAM?s gold sales in 2013 reached 9,391 kg (301,928 oz.), a 34 percent increase over 2012 gold sales of 7,024 kg (225,827 oz) inline with higher demand. Approximately 97% of ANTAM?s gold was sold in domestic market in 2013. In 2013, ANTAM opened 5 retail gold boutiques in Jakarta, Bandung, Surabaya, Palembang and Makassar to expand its gold retail market. ANTAM plans to open 5 to 10 additional gold boutiques in 2014.
With the increase in the sales volume, despite the 11% decline in the average selling price of gold to US$1,523.23 per oz compared to FY12, the FY13 unaudited revenue from the sales of gold reached Rp4.7 trillion. The sales figure increased 30 percent compared to FY12 gold sales revenue of Rp3.63 trillion.
In 4Q13, the gold production volume stood at 710 kg (22,827 oz) with a sales volume of 1,756 kg (56,457 oz). For 2014, ANTAM sets its gold production volume target at 2,572 kg (82,692 oz) comprising of 1,570 kg (50,477 oz) of gold from the Pongkor mine and 1,002 kg (32,215 oz) from Cibaliung mine gold and is targeting a sales volume of 13,570 kg (436,286 oz).
Bauxite
In FY13 ANTAM produced 570,721 wmt of bauxite with a sales realization amounting to 167,229 wmt, all of which was produced at the Tayan mine in West Kalimantan. ANTAM recorded an unaudited bauxite export revenue of Rp67 billion in FY13. For 2014, ANTAM is targeting a bauxite production volume of 670,000 wmt.
| Commodity | Unit | 4Q12 (Oct-Dec) 2012 | FY12 | 4Q13 (Oct-Dec) 2013 | FY13 |
| Ferronickel | TNi | 5,085 | 18,372 | 3,956 | 18,249 |
| High-Grade Nickel Ore | Wmt | 2,248,219 | 6,362,606 | 2,280,599 | 8,550,615 |
| Low-Grade Nickel Ore | Wmt | 981,725 | 3,063,011 | 643,894 | 2,937,533 |
| Total Nickel Ore | Wmt | 3,229,944 | 9,425,617 | 2,924,493 | 11, |
| Gold | Kg/Toz | 707/22,731 | 2,874/92,401 | 710/22,827 | 2,562/82,370 |
| Silver | Kg/Toz | 5,167/166,123 | 21,547/692,752 | 5,992/192,647 | 19,709/633,659 |
| Bauxite | Wmt | 79,454 | 194,190 | 366,646 | 570,721 |
| Commodity | Unit | 4Q12 (Oct-Dec) 2012 | FY12 | 4Q13 (Oct-Dec) 2013 | FY13 |
| Ferronickel | TNi | 6,398 | 19,530 | 2,974 | 14,441 |
| High-Grade Nickel Ore | Wmt | 1,378,429 | 4,415,568 | 1,948,426 | 6,460,898 |
| Low-Grade Nickel Ore | Wmt | 1,582,049 | 3,588,642 | 932,988 | 3,250,183 |
| Total Nickel Ore | Wmt | 2,960,478 | 8,004,210 | 2,881,414 | 9,711,081 |
| Gold | Kg/Toz | 2,085/67,034 | 7,024/225,827 | 1,756/56,457 | 9,391/301,928 |
| Silver | Kg/Toz | 5,812/186,860 | 24,339/782,517 | 7,091/227,981 | 19,940/641,086 |
| Bauxite | Wmt | 66,000 | 130,402 | 58,189 | 167,229 |
Editing by Reiner Simanjutak