Antam reports stable revenue in H1 due on soaring nickel production, price

IDX-listed state miner PT Aneka Tambang Tbk reported on Thursday unaudited first half 2010 consolidated revenue of Rp4.3 trillion (US$=Rp.9,035), which was relatively stable compared to last year?s same period.

The Company said the stable revenue was due to an 81% increase of revenue to Rp2.9 trillion from Antam?s nickel segment which comprised of ferronickel and nickel ore, due to higher sales volume and prices and lower precious metal margin. Antam?s nickel segment was the biggest contributor to Antam?s sales in 1H10.

First half 2010 nickel in ferronikel rose 74 percent to 9,525 tonnes due the optimal load of the FeNi III smelter following the optimization program which was completed in September 2009.

The first half production was 50% of annual production target, the Company said.

Sales also increased by 38% to 9,743 tonnes. As the average selling price of ferronickel rose 70% to US$9.38 per lb., revenue from ferronickel rose 98% to Rp1.8 trillion.

Production of nickel ore rose by 20% over 3.4 million wmt with sales rose by 16% to 2,721,497 wmt. The revenue benefits from nickel ore were higher due to increased ore prices, generated Rp1.1 trillion in revenue or a 59% increase over first semester of 2009.

Gold production from Pongkor mine in West Java rose by 2 percent to 1,382 kg. As Antam begins to operate the new Cibaliung gold mine since the end of May 2010, gold production from Cibaliung amounted to 30 kg in the first half with silver production of 120 kg. Inline with lower precious metals trading activities, Antam?s gold sales decreased by 54% to 3,403 kg. Inline with lower sales, and despite a 25% higher gold price at US$1,157.o8 per toz, revenue from gold decreased by 55% to Rp1.2 trillion. (kanthi)