Antam's H1 net up on higher prices
Wednesday, August 31 2005 - 12:59 AM WIB
The 6% increase over the same period last year is attributed to slightly higher ferronickel and gold prices and increased saprolite nickel ore sales volumes.
Antam?s consolidated revenue in first half 2005 rose 1% to Rp1,311 billion (USD135 million), with the nickel and gold divisions contributing 73% and 20% respectively, a similar portion to 2004.
The major reason for increased revenues is due to the slightly higher average selling prices for Antam?s core products. Although Antam?s ferronickel sales dropped 25% to 2,305 tonnes due to the shut down of FeNi II smelter for repairs, Antam?s ferronickel revenues decreased 23% to Rp283 billion. Meanwhile, 4% lower total ore sales of 1.9 million wet metric tons (wmt) resulted in an 12% increase in ore revenues to Rp678.5 billion. A marginal, 3%, increase of gold sales to 1,830kg produced a 19% increase in gold revenues to Rp237 billion.
The average price Antam charged for its nickel contained in ferronickel rose 11% over the first half of 2005 to USD6.85 per pound. Antam charged USD45.09 per wmt, or 6% more, for its saprolite and the price for limonite decreased by 12% to USD16.28 per wet metric ton.
Due to shut downs for repairs, Antam is targeting a slight decrease 7,400 tonnes of contained nickel in ferronickel production and sales in 2005. To offset the unexpected reduction in sales, volumes of Antam?s saprolite and limonite nickel ores are targeted to increase to 3.2 million wmt and 1.6 million wmt respectively (including 500,000 wmt of LGSO). Gold and silver sales volumes are, similar to 2004, targeted at 3,718 kg and 25,000 kg.
In the second half of 2005, following extensive repairs, Antam plans to resume commercial operations of the FeNi II smelter after a month-long commissioning that will start at the end of August. Antam will also switch on the new FeNi III smelter, with commercial operations expected to start during 1Q06.
Antam anticipates that its full year fuel cost will increase about 15% to Rp220 billion due to recent fuel subsidy lifting.(alex)