Antam reports significant increase in profitability
Thursday, March 2 2017 - 02:52 AM WIB
Petromido
IDX-listed mining firm PT Aneka Tambang Tbk announced Thursday audited consolidated net profit of Rp 65 billion for 2016, compared to Rp 1.44 trillion in net loss in the previous year, thanks primarily to strong production and sales of ferronickel.
Antam said in a statement that the solid increase of profitability was also reflected from its 2016 operating profit of Rp 8.2 billion over Rp 701 billion operating loss in 2015.
The company said its financial structure remains strong and solid. At the end of 2016, Antam had cash and cash equivalents of Rp 7.62 trillion. Antam?s profitability was also supported by the company?s efficiency level of Rp 48.7 billion or 134 percent of the internal target of Rp 36.4 billion.
Antam?s President Director Tedy Badrujaman said: ?In line with the optimal operations of Antam?s ferronickel plants, our ferronickel production and sales reached all time high in 2016 and met strong customers? demand. The operational performance of Antam?s commodities of nickel ore and gold were also on track, hence supporting the company?s profitability in 2016.?
?In line with expectation of higher production and sales in 2017, positive outlook of commodity prices as well as completion of downstream projects in the next 1-2 years ahead, Antam has a solid future to deliver solid returns to its stakeholders,? he added.
Antam said it has set higher production and sales targets of its main commodities of ferronickel and gold in 2017. Antam targets 24,100 tons of nickel contained in ferronickel (TNi) of ferronickel production in 2017, which is 19 percent higher than 2016 ferronickel production of 20,293 TNi.
In terms of gold production, Antam aims to produce 2,270 kg of gold from its Pongkor and Cibaliung mines, in West Java. The 2017 gold production target is higher than 2016 gold production of 2,209 kg.
In 2017 Antam said it will continue to focus on its downstream growth projects. Construction of the East Halmahera Ferronickel Plant Development Project is on track. Antam said it is also finalizing its next downstream projects to add value to its nickel and bauxite reserves. Antam said it is currently preparing its Line 2 & Line 3 ferronickel plant development projects.
Antam said it also continues to add value to its reserves through downstream projects using internal financing or working with strategic partner. For bauxite, Antam is currently focusing on the development of Smelter Grade Alumina Refinery (SGAR) plant with stated-owned aluminum producer PT INALUM (Persero).
Editing by Reiner Simanjuntak