Antam?s Q1 net profit soars on higher selling prices

JSX-listed state mine PT. Aneka Tambang (Antam) announced on Monday unaudited consolidated net profit of Rp1,073 billion (US$119 million) and earnings per share (EPS) of Rp562.62 for the first quarter of 2007 due to higher prices commodities it produced.

Antam?s net sales increased 324% to Rp2,386 billion ($260 million), more revenue than Antam has ever made in a single quarter before, and more than the annual revenues Antam earned per year from 2003 and earlier. The Rp1,823 billion surge in revenues is largely due to increased ferronickel and nickel ore sales volumes and prices.

All of Antam?s products had higher, and in most cases significantly higher sales revenues. The biggest contributor to the increase in revenues was ferronickel, which earned an additional Rp866 billion, or 440%, resulting in Rp1,063 billion of revenues.

Nickel ore contributed an additional Rp860 billion, or 355% increase, resulting in Rp1,102 billion of revenues.

Gold sales increased 110% to Rp143 billion.

The average achieved selling prices of Antam?s products all increased in the first quarter, in line with the trend in global commodity markets.

The average achieved selling price of nickel shot up 158% to US$15.80 per pound, on the back of resilient strong demand for stainless steel around the world and in particular China, which results in continuing strong demand for nickel.

Antam?s average achieved gold price jumped 19% to US$655.52 per ounce, while silver increased 184% to US$13.37 per ounce.(alex)