Antam?s profit down on lower sales, price

IDX-listed state miner PT.Antam Tbk. announced on Wednesday unaudited Q1 2008 consolidated net profit decreased 37% to Rp675 billion (US$=Rp.9,200), and Earnings per Share (EPS) of Rp70.81.

The decrease is mostly due to lower achieved selling prices of ferronickel and lower ferronickel sales volumes in combination with a 20% increase to Antam?s cost of sales due to higher fuel and ore feed prices, the company said.

?The decrease occurred despite slighter higher ferronickel production volume, signaling a good performance from FeNi III, increased gold and silver sales volumes and higher gold and silver achieved selling prices. As such Antam?s net margin contracted to 32% from 45%,? the company said.

Antam?s first quarter sales revenues dropped 12% to Rp2,092 billion from Rp2,386 billion, due to lower ferronickel sales volume as well as lower nickel prices. Nickel, including exports of ferronickel and nickel ore, remains Antam?s biggest sales revenue component, accounting for 72% followed by gold segment which accounted for 27%.

In the first quarter of 2008, sales volumes dropped 62% from 3,345 tonnes to 1,267 tonnes of contained nickel in ferronickel and generated Rp325 billion, a 69% decline from the Rp1,063 billion generated in the first quarter of2007. The decrease of sales volumes was due to ferronickel shipments still in transit to Europe and so were still accounted for as inventories, the company said..

First quarter?s ferronickel production was relatively similar to the first quarter of 2007, as Antam produced 4,362 tonnes of contained nickel in ferronickel compared to 4,352 tonnes. With this result, Antam reached 26% of the 2008 17,000 tonnes target. (alex)