PT Antam (Persero) Tbk

ANTAM’s EBITDA Reaches RP 361.8 Billion in The First Half of 2017 Amidst Pressure from Commodity Price Volatility
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Jakarta, 4 September 2017 - PT ANTAM (Persero) Tbk (ASX - ATM; IDX – ANTM; ANTAM) is pleased to announce the Company’s Earnings     Before Interest, Tax and Depreciation (EBITDA) in the first half of 2017 (1H17) amounted to Rp361.8 billion, a 35% increase over the same period in 2016 (1H16). The average selling price of nickel in 1H17 amounted to US$4.55 per lb. whilst the average selling price of gold in 1H17 amounted to US$1,272 per oz. ANTAM recorded higher EBITDA despite lower sales volume of ANTAM’s main commodities of ferronickel and gold.         
 
ANTAM’s President Director Arie Prabowo Ariotedjo said, 
“ANTAM’s financial performance in 1H17 reflects lower sales volume of ferronickel and gold, coupled with the impact from the commodity price volatility. We are confident that higher operating performance, sustained efficiency efforts and positive trend of commodity prices will improve ANTAM’s financial performance in the second half of 2017.”
    
 
In 1H17, production volume of ferronickel reached 9,327 tons of nickel contained in ferronickel (TNi), a 12% increase compared to 1H16 production level of 8,304 TNi. Despite higher ferronickel production, sales volume was 18% lower at 6,634 TNi compared with 1H16 sales of 8,092 TNi. Lower ferronickel sales volume was due to the roof replacement of the Electric Smelting Furnace-3 (ESF-3) and the            optimization of FeNi III plant production facility. ANTAM’s FeNi III plant has annual operating capacity of 10,000 TNi. The roof replacement and optimization works were completed in March 2017 and ferronickel production is currently at optimal level. Lower ferronickel sales volume was also due to the Company’s decision to commence ramping up ferronickel sales in the second half of 2017 (2H17) inline with the expectation of higher nickel prices. In 1H17 the average selling price of nickel reached US$4.55 per lb., whilst at the beginning of September 2017 the average selling price of nickel has reached US$5.43 per lb.
 
Inline with the positive trend of nickel price in 2H17, ANTAM is confident in increasing nickel sales volume with a profitable margin.
 
In 1H17, total gold production was relatively stable at 1,013 kg compared to gold production volume in 1H16 of 1,015 kg. ANTAM’s gold sales in 1H17 reached 3,298 kg, a 38% decline compared to 1H16 gold sales of 5,392 kg. Lower gold sales volume was due to the disruption of precious metal refinery facilities that occurred in early 2017. The disruption has been resolved.

ANTAM plans to increase sales volume in 2H17 through penetration of export and domestic sales. Inline with lower ferronickel and gold sales volume in 1H17, ANTAM’s net sales decreased 28% year-on-year to Rp3.01 trillion, compared to net sales in 1H16 of Rp4.16 trillion.    
 
As of the end of 1H17, ANTAM continues its development projects with prudent manner. The Engineering, Procurement and Construction (EPC) progress of the East Halmahera Ferronickel Plant Development Project (P3FH) reached 11.7% as of June 2017. ANTAM also continues discussion with PT INALUM (Persero) in the development of the Smelter Grade Alumina Refinery (SGAR) project.
 
In 1H17, ANTAM’s total capital expenditure amounted to Rp811.7 billion, consisting of Rp93.6 billion for routine investment, Rp713 billion for development and Rp5.1 billion for deferred expenses.    
 
ANTAM also continued to intensify various efficiency efforts in 1H17. ANTAM saved Rp10.8 billion or 60% of the 2017 target of Rp17.9 billion. The initiatives comprised of, among others, efficiency of raw material used in operation activities at ANTAM’s business units as well as contract negotiation with third parties.   

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