Antam?s net profit surges on higher commodity prices

State nickel and gold miner PT. Aneka Tambang (Antam) announced Friday unaudited consolidated 9-month net profit of 521 billion (US$=Rp.9, 050) and earnings per share of Rp.272.96. The 260 percent increase over the same period last year is attributed to higher commodity prices.

Largely attributed to exports of nickel, Antam?s 9-month consolidated revenue rose by 36% to Rp.1, 941 billion. Nickel contributed for 75 percent of the revenues, with gold contributing for 18%.

Average price for Antam?s nickel contained in ferronickel rose 66% to US$3.72 per pound, while average selling price for gold increased by 15% to 405.32 per ounce.

Sales of contained nickel in ferronickel, nickel ores, and gold reached 5,394 tons ni, 2,738,686 wmt and 2,754 kgs respectively.

Cost of sales rose 7.5 percent largely due to increased fuel costs, rise in ore exploitation costs as well as higher employee bonus.

Operating expenses increased 16.6 percent following increased exploration and mine closure costs. Higher prices widened Antam?s operating margin to 36 % from 20% last year.(alex)