Antam's nine-month profit rises to Rp. 311 billion

Publicly listed miner PT Aneka Tambang Tbk announced on Tuesday consolidated net income of Rp 311 billion (US$ = 10,800), for the nine months ended September 30, 2001.

According to the company?s announcement, the result is a 2 percent increase over the Rp 303 billion nine-month net profit in 2000.

The company said the increase was due to large growth of third quarter high-grade nickel ore sales and the decreased value of the Rupiah against the US dollar, which was on average 27 percent weaker than the same period last year.

Third-quarter net income of Rp 48 billion was 47 percent smaller than the Rp 90 billion of a year ago due to the value of the rupiah, which strengthened over the quarter, falling commodity prices and reduced ferronickel production.

"We are glad that we were able to record higher profits in these difficult times and are cognizant of the weak Rupiah being a major factor. However, our diversified business mix enabled us to weather the storm of falling commodity prices better than expected. We also saw support from increased high grade nickel ore production and sales following an enlarged order from Japan and the successful inception of mining at Tanjung Buli and exporting from Gee. We will continue to develop profitable, low-cost mines and fill customers orders with the same high quality products and service," said D. Aditya Sumanagara, President Director of Antam.

Net sales for the nine months ending September 30, 2001 reached Rp 1,223 billion, up 11 percent from Rp 1,097 billion last year. The increase is attributed to the weaker Rupiah, as all of Antam's nine-month average selling prices, with the exception of iron sand, were lower. Third quarter sales were 20 percent higher at Rp 391 billion due to high-grade nickel ore sales volumes, which increased 111 percent during the quarter, following the initiation of two new mines and increased orders from Japan. Antam renewed an annual high-grade nickel ore contract with three Japanese companies to June 2002, which increased their joint order by 800,000 wmt per year.

The cost of goods sold were 20 percent higher compared with the third quarter of 2000, and following the first nine months of 2001 Antam's cost of goods sold were 18 percent higher. The increase is largely due to increased nickel ore production and the associated higher contractor expenses with the beginning of mining at Tanjung Buli during the third quarter. The increased production combined with a weaker Rupiah (royalties are paid in US dollars) and higher fuel costs following an increased fuel price in April 2001 hiked the cost of goods sold on a nine-month basis. (alex)