Antam?s 9-mo net profit increases 374% on higher commodity prices

JSX-listed state miner PT Antam Tbk announced on Wednesday its unaudited consolidated net profit increased 374% to Rp3,831 billion, or US$421 million, and Earnings per Share (EPS) of Rp401.69 for the first nine months of 2007, from the Rp809 billion, or US$88 million, and EPS of Rp84.80 of the first nine months of 2006.

The significant increase is mostly due to higher prices of nickel and gold and higher sales volumes of nickel ore and nickel contained in ferronickel. The increase was assisted by a relatively lower increase of Antam?s cost of sales, the company said.

Antam?s net sales for the nine months to September 30, 2007, increased 143% to Rp8,270 billion from Rp3,401 billion. The largest share of the Rp4,868 billion increase is attributed to nickel ore sales, which accounted for 57%, followed by nickel contained in ferronickel at 35% and gold at 8%.

Nickel ore sales increased 241% to Rp3, 939 billion due to higher prices and volumes.

Antam produced 5,205,907 wet metric tonnes (wmt) of saprolite and exported 5,010,268 wmt in the first nine months of 2007. The average price of saprolite increased 53% to US$85.43/wmt.

Antam?s nickel contained in ferronickel sales revenues increased 101% to Rp3,377 billion due largely to higher prices and volumes. Antam produced 12,258 tonnes of nickel contained in ferronickel and exported 9,279 tonnes in the first nine months of 2007. The average price of Antam?s nickel contained in ferronickel over the period increased 73% to US$18.28/lb.

Gold remained the third largest revenue earner as revenues increased 103% to Rp737 billion to higher volumes and prices. Antam produced 2,128 kg of gold (equivalent to 68,417 oz) and sold 3,730 kg of gold (equivalent to 119,922 oz) in the first nine months of 2007.

Antam?s cost of sales increased Rp922 billion or 49% to Rp2,818 billion. The largest contributor to the increase was materials, followed by ore mining services and royalties. (alex)