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Jakarta, March 16, 2022 - PT Aneka Tambang Tbk (ANTAM; IDX: ANTM; ASX: ATM) member of Mining Industry Indonesia (MIND ID) – the State-Owned Enterprise Holding of the Mining Industry, is pleased to announce the Company’s positive financial performance in 2021. This achievement was in line with the Company’s aims to elevate its operational competitiveness through the production and sales innovative efforts with the aim to enhance Company’s product added value, optimization on production and sales performance as well as taking strategic policies to meet an appropriate cost efficiency approach. Despite the global economic downturn in midst of the new normal era of the Covid-19 pandemic within 2021, the Company retains its profitable performance as well as its production and sales performance growth through the implementation of proper health protocols with high consistency throughout its operating area.
In 2021, ANTAM's positive performance is reflected on positive Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of Rp5.71 trillion, a 79% higher than the 2020’s EBITDA level of Rp3.19 trillion. Through the implementation of best business practices that conduct of each ANTAM employee, The Company elevates its sales revenue to Rp38.44 trillion, increasing 40% year over year (YoY) from the 2020’s sales revenue of Rp27.37 trillion. The effectiveness of cost control efforts at the Company’s cost of goods sold and operating expenses propels the escalation of ANTAM’s gross profit up 42% YoY in 2021 which amounted to Rp6.36 trillion. Moreover, in 2021, ANTAM’s operating profit amounted to Rp2.74 trillion, increased by 35% from the Company’s operating profit of Rp2.03 trillion in 2020. The improvement of the Company’s gross and operating profit number elevates ANTAM’s profit for the year in 2021 with a net profit of Rp1.86 trillion, rising by 62% YoY the 2020’s profit for the year of Rp1.15 trillion.
The proper implementation of the Company’s operational strategy was also reflected in the positive profitability of its main commodity comprised of nickel, gold, and bauxite products. Throughout 2021, the Company was generating a positive inflow of net cash provided from operating activities amounted to Rp5.04 trillion, significantly increased compared to the net cash provided from operating activities within the 2020 period of Rp2.22 trillion. Within 2021, the Company posted a net increase in cash and cash equivalents amounted to Rp1.09 trillion, hiked by 152% compared to the net increase in cash and cash equivalents in 2020 amounted Rp432.84 billion. ANTAM’s solid operation and sales performance strengthened ANTAM's financial structure which reflected from cash and cash equivalents in 2021 reached Rp5.09 trillion.
The solid position of ANTAM financial performance in 2021 is also reflected in the decrease of the Company’s liability. Throughout 2021, the Company was able to reduce its interest-bearing debt liabilities which consist of short-term bank loans, bonds payable, and investment loans (current & non-current loan) up to Rp1.72 trillion. Moreover, ANTAM’s interest-bearing debt at the end of the 2021 period amounted to Rp5.87 trillion or decreased to 33% from the interest-bearing debt level at the end of 2020 of Rp7.59 trillion.
Furthermore, ANTAM’s solid financial performances within 2021 were also reflected in the improvement of the Company’s corporate credit rating from the S&P Global at the “B+/outlook stable” rating and retain a Company’s Sustainable Bonds I Year 2011 ratings from PT Pemeringkat Efek Indonesia (PEFINDO) with the rating of “idA/stable outlook”.
ANTAM’s Production and Sales Performance Retains on Optimum Level During 2021 Period
The appropriate optimization campaign on ANTAM’s production and sales figure has been conducted in mid of global and national economic recovery were led to the solid achievement of the Company’s net sales revenue figure in 2021 of Rp38.44 trillion of rose to 40% YoY. In relation to the Company’s marketing strategy, ANTAM has been focusing to develop domestic-based customers for its gold and nickel ore product in-line with the commodity demand in the domestic market. In 2021, ANTAM revenue from domestic sales activity recorded at Rp29.86 trillion or equal to 78% from 2021’s Company net sales figure.
During 2021, ANTAM’s gold product sales became the largest contributor to total sales with a contribution of Rp25.94 trillion or 67% of ANTAM’s total sales. Furthermore, within 2021, ANTAM gold sales revenue arise to 34% YoY over the 2020 gold sales revenue of Rp19.36 trillion. The positive appreciation of ANTAM’s gold net sales figure was in line with the increase of ANTAM’s gold sales in 2021 of 29.38 ton or 33% increase YoY from 2020 gold sales volume of 22.10 ton. In 2021, ANTAM marked the all-time high performance of the domestic gold sales achievement of 28.28 ton. In terms of gold production, in 2021, the ANTAM’s gold production volume from the Pongkor and Cibaliung gold mines recorded at 1.69 tons grew 1% compared to the gold production volume in 2020 of 1.67 tons. Moreover, the stable trend of global gold price within 2021 led to an increase in operating profit for the Precious Metal and Refinery segment which amounted to Rp1.67 trillion, an increase of 15% YoY in 2021.
To maintain excellent service during the new normal condition due to Covid-19 pandemic, ANTAM applies the terms of online gold transaction through Logam Mulia website, www.logammulia.com, and ANTAM’s official account, “Butik Emas ANTAM Official” at online marketplace platform, Tokopedia. This initiative is inlining with the Company’s aims to broader its market share in the domestic gold market.
Within 2021, the sales of ferronickel were the second largest contributor to ANTAM's revenue, amounting to Rp6.36 trillion or 17% of total sales. ANTAM’s ferronickel production and sales output are maintained on the optimum level with a volume of 25,818 ton nickel within ferronickel (TNi) and 25,992 TNi respectively. Moreover, in terms to increase Company’s nickel mine production capacity, in 2021, ANTAM was established the North Konawe Nickel Business Unit to manage and conduct nickel mining operation activity at ANTAM’s nickel mining concession area in North Konawe, South East Sulawesi province.
During 2021, the Company’s nickel ore production volume which was produced as ferronickel plant feed ore material as well as sold to domestic market customers amounting to 11.01 million thousand wet metric ton (wmt), elevates 132% YoY from nickel ore production of 4.76 million wmt in 2020. Meanwhile, in 2021, ANTAM recorded nickel ore sales, which entirely being absorbed by the domestic customer, with a sales volume of 7.64 million wmt, significantly increasing by 132% YoY from 2020’s sales volume of 3.30 million wmt. Through the positive appreciation of ANTAM nickel ore product and positive tone on nickel outlook demand from the domestic market excels Company’s revenue from nickel ore sales in 2021 of Rp4.38 trillion, increase 135% from nickel ore sales revenue in 2020 of Rp1.87 trillion.
In line with the positive trend of global nickel pricing in 2021 and the improvement on the Company’s nickel operational activity bring a positive result on ANTAM’s Nickel Segment profitability with operating income of Rp4.33 trillion or jump to 95% YoY from the 2020’s Nickel Segment operating income of Rp2.22 trillion.
The global Covid-19 pandemic, which began in 2020, was brought additional challenges to the Company's Bauxite and Alumina Segment, mainly in accordance with the Company's effort to escalate bauxite and alumina sales performance that correlates as well to the Company's aims to increase alumina plant production output on the ideal level. The global pandemic condition also brings an effect on alumina product selling price volatility as well as the escalation trend on alumina plant's raw material and logistics cost.
As part of the Company's commitment to the implementation of good corporate governance principles, the Company ensures the financial aspect is fully managed with prudent and accountability by complying with the applicable financial accounting standards, including the assessment on impairment of fixed asset of Company subsidiary, PT Indonesia Chemical Alumina (PT ICA) per 31 December 2021 in accordance with SFAS 48, and concluded the existence of impairment triggering events due to recurring losses event and the unprecedented increases of main production costs components. The Company reviewed and realigned PT ICA’s business plan, which served as the basis in the impairment calculation during 2021 (non-cash). By establishing the key assumption approach that reflects the rational considerations and the optimistic estimation on the economic condition of fixed assets, the Company expects the impairment of PT ICA’s fixed assets will not recur in the future.
In 2021, ANTAM’s Bauxite and Alumina Segment books revenue of Rp1.43 trillion, equal to 4% of the Company’s revenue. ANTAM bauxite production in 2021 was recorded at 1.67 million wmt, an increase 8% YoY from 2020’s bauxite production volume of 1.55 million wmt. Moreover, ANTAM recorded the 2021 bauxite ore sales volume of 1.42 million wmt, which rose to 16% YoY from the 2020 bauxite sales volume of 1.23 million wmt. Meanwhile, ANTAM alumina production amounted to 95 thousand ton of alumina, increasing 3% YoY from 2020’s production numbers of 93 thousand ton alumina. In 2021, alumina sales volume increase 61% YoY to 133 thousand ton compared to the 2020 sales volume of 83 thousand ton alumina.
ANTAM’s Downstream Development Project
With regards to the Company's development projects in 2021, ANTAM is currently completing the construction phase of the ferronickel plant construction project & the supporting plant facility in East Halmahera, North Maluku, which will have an installed capacity of 13,500 TNi per annum. Up to the end of 2021, the completion of the construction stage was 98.18%.
In terms of the electricity supply for the ferronickel plant operation in East Halmahera, on February 2022, ANTAM has signed the Head of Agreement (HOA) with PT Perusahaan Listrik Negara (Persero) (PLN). Moreover, as part of the HoA implementation, the Electricity Sales and Purchase Agreement has been signed as well by ANTAM and PLN on March 2022. Under this synergy, the electricity supply will be provided in stages by PLN over the next 12 month period.
In terms of developing the bauxite downstream process, the Company is currently focusing on the construction of the Smelter Grade Alumina Refinery (SGAR) plant in Mempawah, West Kalimantan, which was jointly developed with PT Indonesia Asahan Aluminum (Persero) with a processing capacity of 1 million tons of SGAR per annum.
ANTAM’s Contribution for the Covid-19 Pandemic Prevention
Since the Covid-19 pandemic outbreaks in Indonesia, ANTAM has followed and applied proper health protocol with high consistency throughout its operation area which covers mining, processing plant, and office in order to promote the occupational health of employees from Covid-19 disease. In addition, the application of appropriate health protocol with consistency in action promotes the sustainability of the Company’s operation production, sales, and development activities in the midst of a pandemic.
ANTAM also synergizes with the stakeholders on pandemics handling transmission in the community. Several initiatives related to Covid-19 prevention in the community have been conducted by the Company and its subsidiary. Among others, conducted the vaccination in mutual corporation program, assisted the public health apparatus, initiated the medical oxygen aid program, assisted essential food aid assistance for community groups in need as well as assistance with self-quarantine packages and non-medical facilities. As of December 2021, ANTAM has realized a total budget of Rp11.34 billion for assistance support of Covid-19 handling.