Jakarta, October 23, 2015 - PT ANTAM (Persero) Tbk (ASX - ATM; IDX - ANTM; ANTAM) issues this release in connection with the Government of Indonesia capital injection related to the company’s rights issue.
ANTAM's President Director Tedy Badrujaman said,
"The Government of Indonesia has injected Rp3.5 trillion to ANTAM to exercise its rights in the rights issue transaction. The injection of the government capital proves that the government strongly supports the mining industry in Indonesia and is a form of government support to the Minerals and Coal Mining Law that encourages the industry to produce products with high added value."
From the total maximum proceeds of Rp5.4 trillion from the rights issue, Rp3.5 trillion will be used for the completion of the construction of a ferronickel plant in East Halmahera project Phase I, which will increase the production capacity of ferronickel by 13,500-15,000 tons of nickel contained in ferronickel (TNi) per year. While the rest will be used to finance working capital related to ANTAM’s operating activities as well as the company’s business development initiatives related to increased production capacity.
ANTAM's continual investment in ferronickel smelting capacity will further reposition ANTAM as a vertically integrated base and precious metals player, further enhancing ANTAM's competitiveness and value-add to its global customers.
ANTAM's President Director said further,
"ANTAM continues to be the producer of ferronickel at the lowest cost quartile, supported by large-scale reserves, making ANTAM one of the major players in the ferronickel industry.
Under world commodity price conditions that are still not optimal, ANTAM still seeks to improve efficiency in its operations to maintain profit margins.
It is very important to maintain the continuity of the business in its current state, where only the efficient producers that can compete in the nickel industry, and ANTAM has the advantage in this regard. In the first semester of 2015, ANTAM posted positive operating profit margins in current nickel price environment given its low cash cost. In addition, the rights issue process is going on track, where we see some potential subscription from key investors. "
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The shares of ANTAM being offered as part of the Rights Issue and the rights to purchase such shares (together, the "Securities") is not an offer of Securities in the United States. Such Securities may not be offered or sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933 (the "Securities Act"). Any public offering of Securities in the United States will be made by means of a prospectus that will contain detailed information about ANTAM and its
management, as well as financial statements.
