Antam?s 9 mo net profit falls by 82%

IDX-listed state miner PT.Aneka Tambang Tbk (Antam) announced on Monday its January-September unaudited net profit reached Rp 293 billion (1US$ = Rp 9,500), a 82% decrease compared to the same period of last year due to lower prices and sales volumes of nickel.

Antam?s President Director Alwin Syah Loebis said: ?Our nine months of 2009 financial performance reflects the impact of lower sales volumes and prices of nickel due to the global economic crisis. Nonetheless, nickel prices and demand have improved since the beginning of the second half of 2009, which we hope the trend to continue. We are ready to take advantage of this condition inline with the completion of the optimisation program of the FeNi III smelter in September 2009.?

Antam produced 1,945 kg of gold (equivalent to 62,533 oz) and sold 10,065 kg of gold (equivalent to 323,597 oz) in the first nine months of 2009. Gold sales volume was 57 percent higher over the same period last year.

The price of Antam?s gold rose 3 percent to US$938.87/oz. Despite higher revenue from trading activities, profits were small as trading activities had small margins.

Antam produced 17,383 kg of silver (equivalent to 558,876 oz) and sold 53,070 kg (equivalent to 1,706,240 oz) in the first nine months of 2009. Sales volume of silver was 172 percent higher over the first nine months of 2008. Silver generated Rp254 billion, a 157 percent increase.

Nickel contained in ferronickel revenues decreased 53 percent to Rp1,353 billion due largely to lower prices and volumes. Antam produced 8,677 tons of nickel contained in ferronickel and exported 9,639 tons in the first nine months of 2009.

Sales volume of ferronickel was 24 percent lower and the average price of Antam?s nickel contained in ferronickel over the period decreased 45 percent to US$6.21/lb.

Antam decided to accelerate the optimization program of the FeNi III smelter. As Antam anticipated improved nickel demand in the second semester of 2009, Antam expected improved production capacity following the completion of the optimization program.

Due to depletion of reserves at the Kijang bauxite mine, Antam plans to close the mine at the end of the year. Antam currently prepares mine closure plan at Kijang and opens the new bauxite mine of Tayan, West Kalimantan.

Antam also plans develop the Tayan CGA project to add value to its bauxite reserves at Tayan. Antam?s bauxite ore sales fell 61 percent to Rp 48 billion in line with the depletion of reserves and lower demand.

Antam?s bauxite sales volumes dropped 67 percent to 238,784 wmt and the production fell 32 percent to 696,588 wmt. Bauxite contributed 1 percent of Antam?s revenue in the first nine months of 2009. (denny)