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Jakarta, May 20, 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 growth of the Company’s operational and financial performance during the first quarter of 2022 (1Q22). 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 in midst of the economic volatility condition in new normal era of the Covid-19 pandemic.
In 1Q22 ANTAM’s solid operational and financial performance was reflected from Earning Before Interest, Taxes, Depreciation and Amortization (EBITDA) amounted to Rp2.54 trillion. EBITDA performance in 1Q22 substantially increased compared to EBITDA from the first quarter of 2021 (1Q21) of Rp1.24 trillion or grew 105%. Higher EBITDA level was supported by operation production and sales stability as well as efficiency improvements. Moreover, the positive appreciation of the international commodity price also brings positive tone on the Company’s profitability.
The growth of ANTAM’s profitability in 1Q22 is reflected in ANTAM’s gross profit of Rp2.45 trillion, an increase of 51% from gross profit in 1Q21 amounting to Rp1.63 trillion. Meanwhile, ANTAM's operating profit in 1Q22 is recorded at Rp1.62 trillion, increased by 104% from the operating profit in 1Q21 of Rp793.89 billion. The solid improvement of gross and operating profits as well as positive tone on commodity price gave support to ANTAM’s net profit for the period in 1Q22 amounted to Rp1.47 trillion, increased 132% from net profit for the period in 1Q21 of Rp630.38 billion.
The proper implementation of the Company’s operational strategy was also reflecting in the positive profitability of its main commodity that comprised of nickel, gold, and bauxite products. Throughout 1Q22, the Company was generating a positive inflow of net cash provided from operating activities amounted to Rp481.46 billion. The strengthened of ANTAM's financial structure are also reflected from cash and cash equivalents at the end period of 1Q22 reached Rp4.16 trillion.
ANTAM’s Production & Sales Performance in 1Q22
In 2022, in relation to the Company’s marketing strategy, ANTAM has been focusing to develop domestic-based customers for its gold, nickel ore and bauxite product in-line with the commodity demand in the domestic market. In 1Q22, ANTAM net sales amounted to Rp9.75 trillion, rose to 6% compared to net sales in 1Q21 recorded at Rp9.21 trillion. Revenue from domestic sales activity as the dominant contributor amounted Rp7.42 trillion or equal to 76% of the Company’s total net sales in 1Q22. According with commodity segment, gold sales was the largest contributor of ANTAM’s net sales amounted Rp5.88 trillion (60%), ferronickel booked net sales of Rp1.86 trillion (19%), nickel ore amounted Rp1.62 trillion (17%), and bauxite & alumina segment amounted Rp299.40 billion (3%).
During 1Q22, ANTAM’s gold production volume from the Pongkor and Cibaliung mines posted at 370 kg (11,896 troy oz) rose to 28% from 1Q21 production volume of 290 kg (9,323 troy oz). In 2022, ANTAM is focusing on developing the domestic customer base especially for gold product in line with the positive growth awareness of gold investment and positive growth demand for Company’s gold product on domestic market. Within 1Q22, ANTAM’s gold sales volume reached 6,575 kg (211,391 troy oz).
Pursuant to the Company’s aim to ease customer access, on February 2022, ANTAM commences the Precious Metal product sales activity through the marketplace platform Tokopedia with the opening of the “Butik Emas ANTAM Official” account in addition to the existing official online sales through www.logammulia.com website. The development of online-based gold transactions is in line with the Company’s strategy to broader its market share in the domestic gold market. In addition to the online-based platforms, the Logam Mulia products are also available and sold in the Butik Emas Logam Mulia network spread across 11 cities in Indonesia and sales exhibitions in several locations. ANTAM carried out the operation and sales activity with a proper and consistent health protocol.
In 1Q22, ANTAM recorded a positive result for its nickel segment. In 1Q22, ANTAM’s ferronickel production volume reached 5,681 ton of nickel in ferronickel (TNi), with the ferronickel sales volume in 1Q22 amounted to 5,660 TNi. Ferronickel sales in 1Q22 were recorded at Rp1.86 trillion, an increase of 51% compared to 1Q21 amounting to Rp1.23 trillion. Meanwhile for the nickel ore commodity, in 1Q22, the Company’s production volume of nickel ore, which was used as the ore feed to the ferronickel plant as well as sold to the domestic market amounted to 2.92 million wet metric ton (wmt), increased by 11% compared to the nickel ore production in 1Q21 of 2.64 million wmt. Meanwhile, the sales volume of nickel ore in the domestic market reached 2.33 million wmt in 1Q22 or a rise of 46% compared to 1Q21 sales volume of 1.60 million wmt.
On the bauxite commodity, in 1Q22 the production volume of ANTAM's bauxite, which was used as the ore feed to the Chemical Grade Alumina Plant as well as sold to third parties, amounted to 469,332 wmt with a sales volume of bauxite of 102,373 wmt. In addition to export sales, in 2022, the Company will also focus on developing domestic sales of bauxite ore. On alumina product, during 1Q22, as many as 33,830 ton alumina was produced, a rose to 121% from alumina production volume of 15,315 ton in 1Q21. Moreover, the alumina sales volume reached 34,822 ton alumina in 1Q22, or relatively stable compared to alumina sales volume in 1Q21 of 34,314 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. In terms of the electricity supply for the ferronickel plant operation in East Halmahera, on March 2022, the Power Purchase Agreement with PT Perusahaan Listrik Negara (Persero) (PLN) to cooperate in providing electric supply for the next 30 years.
In relation to the development of the EV battery ecosystem, on April 2022, ANTAM with PT Industri Baterai Indonesia (Indonesia Battery Corporation (IBC)), and PT Ningbo Contemporary Brunp Lygend Co, Ltd (CBL) has signed the framework agreement on the development of an integrated EV Battery project. ANTAM and IBC also signed a similar agreement with LG Energy Solution.
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.