Antam sales up 13% in H1 on higher gold and nickel ore sales
Monday, August 1 2011 - 03:56 AM WIB
The largest contributor to the sales was ferronickel and nickel ore, contributing 65% or Rp 3.1 trillion of the sales value. Meanwhile, sales of gold, silver and precious metals refinery contributed 33% of Antam?s first semester sales.
In the second quarter of 2011 (April-June 2011), Antam?s sales reached Rp 2.9 trillion, or a 9% increase compared with the same period of 2010.
Ferronickel
Antam recorded ferronickel production volume of 9,838 tonnes of nickel contained in ferronickel (TNi) in the first half of 2011 (H1), up 6% compared with the same period of 2010. All of Antam?s ferronickel plants operated at optimum capacity during the period.
Ferronickel production in H1 was 55% of this year?s production target of 18,000 TNi. Ferronickel production volume during the second quarter of 2011 (April-June 2011) (2Q11) reached 5,002 TNi, up 3% from the same period last year (2Q10).
In 1H11, ferronickel sales volume amounted to 9,072 TNi or reached 49% of annual target of 18,500 TNi as several of Antam?s ferronickel were on transit in 2Q11. Antam?s first half ferronickel sales volume includes the 2,128 TNi which was hijacked off the Somalia coast and have been delivered to Antam?s customers. In 2Q11, ferronickel sales reached 6,863 TNi, down 15% from the same period last year.
Antam?s revenue from ferronickel sales grew by 7% to Rp 1.96 trillion in H1, in line with the high demand of ferronickel and a 20% increase in nickel price during the period to US$ 11.29 per lb.
Nickel Ore
In 1H11, nickel ore production increased by 15% compared with the same period of 2010 to 3,909,479 wet metric tonnes (wmt). This production comprises of 1,725,986 wmt of high grade nickel ore and 2,183,493 wmt of low grade nickel ore. The rise in the production of nickel ore was followed by a 5% increase in the sales of the commodity to 2,869,064 wmt due to high demand.
Nickel ore production in the first half was 51% of this year?s production target of 7.65 million wmt, whilst the nickel ore sales volume in 1H11 was 49% of 2011 sales target of 5.86 million wmt.
Total nickel ore production in 2Q11 rose by 4% to 1,901,331 wmt, while nickel ore sales volume amounted to 1,242,258 wmt or a 13% decrease over the same period in 2010.
Antam?s revenue from nickel ore in the first half grew by 7% to Rp 1.19 trillion from the same period last year, due to higher sales volume and price.
Gold
Antam?s gold production volume in the first semester reached 1,241 kg, comprising of 974 kg of gold mined from the Pongkor mine and 267 kg gold from the Cibaliung mine.
Gold production in the period was 10% lower than 1H10, due to lower gold grades at the Pongkor mine. The average grade of the gold ore at Pongkor in 1H11 reached 8.58 gram per ton (gpt) compared with 10.09 gpt in the same period last year. Antam?s gold production in 2Q11 fell by 11% to 653 kg.
Antam decides to lower Cibaliung gold production to around 1 ton as the company is yet to mine the planned gold veins. As such, Antam estimates gold production in 2011 of around 3 ton.
Gold sales volume reached 3,611 kg during 1H11 or up 6% from 1H10. Meanwhile, sales volume of gold during the second quarter of 2011 amounted to 1,881 kg or up 39% from the same period last year.
Antam?s revenue from gold reached Rp l.49 trillion in the first half this year or a 28% increase over 1H10, in line with higher sales volume and average selling price of gold by 27% compared with 1H10 to US$ 1,472.81 per troy ounce.
Bauxite
Although Antam ceased bauxite production at Kijang, bauxite sales from the mine continued. Sales of bauxite inventory at Kijang in the first half of 2011 amounted to 130,218 wmt with an export value of Rp 13.8 billion.
Coal
In line with the acquisition of the Sarolangun coal mine in Jambi, Antam, through its subsidiary, PT Indonesia Coal Resources, produced 215,150 tonnes of coal and sold 194,263 tonnes of the commodity domestically in 1H11, generating revenue of Rp 26.2 billion. (romel)