Antam swings to profit

By Romel S. Gurky

IDX-listed mining firm PT Aneka Tambang Tbk (Antam) said that it returned to profitability in the first nine months of this year (9M16) with a Rp38.3 billion of profit for the period attributable to owners of the parent over Rp1.04 trillion of loss for the corresponding period of last year (9M15).

?We aim to deliver solid profitability and return to our shareholders. As we continue to optimise our production and sales performance coupled with continuous efficiency efforts, including higher nickel ore sales to domestic smelters, we expect continued positive performance in the future,? said Antam Finance Director Dimas Wikan Pramudhito in a statement on Tuesday.

Antam?s net sales in 9M16 reached Rp6.45 trillion with the export market continues to be the company?s main destination. The export market contributed 59 percent or Rp3.79 trillion of Antam?s 9M16 total net sales.

Antam said in the statement that in 9M16, gold was the largest contributor to the company?s total net sales with a contribution of Rp4.36 trillion, or 68 percent of total net sales. Ferronickel was the second largest contributor of net sales with a Rp 1.49 trillion contribution or equal to 23 percent of total sales. Sales of nickel ore to domestic smelters in 9M16 amounted to Rp 248 billion, or 4 percent of total net sales.

Antam said it spent Rp841.8 billion for investments in the first nine months of this year. The company spent Rp 190.1 billion for routine investment, Rp 642.2 billion for development and Rp 9.5 billion for deferred expenses. In 9M16 the largest investment went to the development of the Pomalaa Ferronickel Plant Expansion Project (P3FP) in which Antam spent Rp 561.7 billion.

In supporting its development projects, Antam said it has conducted cooperation in finance areas with PT Bank ICBC Indonesia in amount up to US$1.5 billion. The support may include among others short term financing support which include working capital loan, and long term financing which includes among others financing for investing purposes, acquisition financing, financing for new subsidiary, new plant and financing to support production and distribution expansion.

In 9M16, Antam continued its efficiency program and was able to save Rp23.1 billion. Antam?s cost saving program includes, amongst others, efficiency of consumables at business units and renegotiation of third party contracts.

?Antam is committed in becoming one of the low cost ferronickel and gold producer with 9M16 ferronickel cash cost of US$3.38 per lb. and gold cash cost of US$837.07 per oz,? the company said.

Elsewhere, Antam said it has recently completed the construction of its 2x30MW coal fired power plant which is part of the P3FP. The company is currently finalizing the overall P3FP completion with estimated commercial operation at the end of 2016. On the Haltim Ferronickel Plant Development Project (P3FH), Antam has appointed a consortium of Kawasaki Heavy Industries, Ltd. and PT Wijaya Karya (Persero) Tbk as the turnkey EPC (Engineering, Procurement and Construction) contractor of P3FH Stage 1 Line 1 with a Rp3.42 trillion contract value.

PRODUCTION VOLUME

Commodity	Unit	3Q15 (Jul-Sept) 2015	9M15 (Jan-Sept) 2015	3Q16 (Jul-Sept) 2016	9M16 (Jan-Sept) 2016
Ferronickel	TNi	3,396	12,838	6,089	14,393
High Grade Nickel Ore	Wmt	-	432,471	463,515	1,107,640
Low Grade Nickel Ore	Wmt	-	-	-	-
Total Nickel Ore	Wmt	-	432,471	463,515	1,107,640
Gold	Kg/oz	578/18,583	1,684/54,142	527/16,943	1,542/49,576
Silver	Kg/oz	4,754/152,845	13,138/422,397	4,110/132,140	11,743/377,546
Bauxite	Wmt	63,046	172,445	58,759	163,783
Alumina	Ton	28,187	51,587	29,372	67,687

SALES VOLUME

Commodity	Unit	3Q15 (Jul-Sept) 2015	9M15 (Jan-Sept) 2015	3Q16 (Jul-Sept) 2016	9M16 (Jan-Sept) 2016
Ferronickel	TNi	2,081	13,388	4,003	12,095
High Grade Nickel Ore	Wmt	-	-	213,222	631,451
Low Grade Nickel Ore	Wmt	-	-	-	-
Total Nickle Ore	Wmt	-	-	213,222	631,451
Gold	Kg/oz	1,652/53,113	12,648/406,643	2,676/86,035	8,068/259,392
Silver	Kg/oz	2,465/79,252	9,964/320,318	4,199/132,429	15,548/499,880
Bauxite	Wmt	60,682	161,486	104,708	186,033
Coal	Ton	89,543	395,565	56,510	171,697
Alumina	Ton	17,894	37,943	17,970	52,078

Editing by Reiner Simanjuntak