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Implementation of Proper Health Protocol with Consistent Practices Support The Company’s Production, Sales & Business Development Sustainability in Midst of Global Covid-19 Pandemic
During First Half of 2020 (January-June 2020, 1H20) The Company’s Gross Profit Recorded at Rp1.31 Trillion. In The Second Quarter of 2020 (April-June 2020, 2Q20) ANTAM’s Gross Profit Amounted to Rp747.23 Billion, Growth by 33% Compared to The First Quarter 2020’s (January-March 2020, 1Q20) Gross Profit of Rp561.82 Billion.
ANTAM’s Operating Profit Within 1H20 Recorded at Rp451.44 Billion. During 2Q20, The Company’s Operating Profit Marked at Rp313.90 Billion, Rebounded 128% From The 1Q20 Achievement of Rp137.54 Billion
During 2Q20, ANTAM’s Net Profit Improves Significantly Compared to The Company’s Net Loss of Rp281.84 Billion in 1Q20. ANTAM Posted a Net Profit of RP84.82 Billion Over 1H20 Accumulative Period
ANTAM Always Been Promoting Appropriate and Optimum Cost Efficiency Strategy As Well AS Business Innovation to Improve Its Competitiveness. These Efforts Are Also Reflected on ANTAM’s 1H20 Ferronickel Cash Cost Figure Achievement of USD3.33 per lb., Reduced by 16% Compared to Ferronickel Cash Cost Figure of USD3.95 per lb. Within 2019
Jakarta, August 3, 2020 - PT Aneka Tambang Tbk (ANTAM; IDX: ANTM; ASX: ATM) is pleased to announce the Company’s positive financial performance during the First Six Month Period of 2020 (1H20). During the Covid-19 pandemic, the Company 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 pandemic.
Despite the global economic downturn, ANTAM also remains its profitable performance. During 1H20, ANTAM's records positive Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of Rp828 billion. In the Second Quarter of 2020 (2Q20), the Company’s EBITDA was generating up to Rp794 billion that increased significantly compared to EBITDA level of Rp34 billion within the first quarter of 2020 (1Q20). Higher EBITDA level was supported by operation production and sales stability as well as efficiency improvements that led to optimum cash costs level.
Throughout 1H20, ANTAM’s gross profit amounted to Rp1.31 trillion. Meanwhile in 2Q20, the Company’s gross profit hiked up to Rp747.23 billion, rose to 33% from 1Q20 gross profit of Rp561.82 billion. Furthermore, ANTAM’s operating profit in 1H20 recorded at Rp451.44 billion. Within 2Q20 ANTAM’s operating profit was achieved up to Rp313.90 billion, improved by 128% from 1Q20’s operating profit of Rp137.54 billion. These achievements was propelled the Company’s net profit figure in 2Q20 up to 230% compared to 1Q20’s net loss of Rp281.84 billion. Over 1H20 period, ANTAM posted a net profit of Rp84.82 billion accumulatively.
In ANTAM’s Consolidated Financial Statement for the year ended June 30, 2019, the Company set forth the restatements of equity accounting of investments in foreign operations, long-lived assets, capitalization of certain expenditures, inventories, provision for environmental and reclamation costs and certain taxation accounts. In addition, the reclassifications were also conducted on certain accounts to conform with the 2019 audited presentation.
ANTAM’s Operation & Sales Performance Remains Solid in 1H20
In 1H20, ANTAM’s net sales figure achieved up to Rp9.23 trillion with gold sales as the largest contributor to total sales with a contribution of Rp6.41 trillion or 69% of ANTAM’s total sales. Related to the Company’s gold sales & marketing strategy, in 2020 ANTAM has been focusing to develop domestic-based customer in line with the public’s growth awareness on gold investment and positive tone on the Company’s gold product demand in the domestic market. Currently, ANTAM Logam Mulia gold minted bar products are the top brand in Indonesia. In 1H20, the operating income of ANTAM’s Precious Metals and Refinery segment amounted to Rp495.16 billion with an accumulative gold sales volume of 7,915 kg (254,505 t.oz). Despite lower accumulative gold sales volume, the operating income of Precious Metals and Refinery segment within 1H20 was rose to 111% from the operating income figure of Precious Metals and Refinery segment in 1H19 of Rp234.94 billion. During 1H19, ANTAM was sold 15.741 kg (506,084 t.oz) of gold. The Company believes that proper gold marketing strategy which aimed to develop the domestic market as well as operational efficiency effort has led to improve the profitability of the Company’s Precious Metals and Refinery segment. Moreover, the positive trend of global gold price that was rebounding up to 26% on average during 1H20 (compared to 1H19 global average price) also bring a positive flavor on ANTAM’s Precious Metals and Refinery segment profitability.
In order to maintain excellent services during the new normal period due to Covid-19 pandemic, ANTAM implemented the provisions of online gold transaction through the official website at www.logammulia.com. ANTAM’s precious metal products are marketed under the Logam Mulia Boutiques network in 11 cities in Indonesia. In addition, ANTAM also conduct canvas sales activity at several strategic point to bring an ease public access to ANTAM’s precious metal product. ANTAM has a strong commitment to implementing health protocols to safeguard the health and safety of employees and customers.
In 1H20, the sales of ferronickel sales was the second largest contributor to ANTAM's revenue, amounting to Rp2.02 trillion or 22% of total sales. During 2Q20, ANTAM’s ferronickel sales volume reached 13,045 ton nickel within ferronickel (TNi) a slightly stable compared to ferronickel sales of 13,157 TNi in 1H19. During 2Q20, ANTAM’s ferronickel sales volume reached 6,867 TNi, an 11% growing compared to 1Q20 sales volume. Meanwhile ANTAM’s ferronickel production in 1H20 reached to 12,762 TNi or equals to 98% of ferronickel production volume of 13,017 TNi in 1H19. During 1H20, ANTAM’s ferronickel production and sales performance was achieving 48% respectively from the 2020 Company’s ferronickel production and sales target.
On nickel ore commodity, in 1H20, ANTAM’s nickel ore production volume which produced as ferronickel plant feed ore material as well being sold to domestic market customers are amounting to 1.37 million wet metric ton (wmt). Furthermore, ANTAM’s domestic nickel ore sales figure within 1H20 was recorded at 168 thousand wmt. During 2020, ANTAM has aimed to expand its nickel ore domestic customer base in line with the establishment of mineral domestic benchmarking prices by the Ministry of Energy and Mineral Resources that will create a competitive domestic minerals’ pricing structure amidst of positive outlook on domestic absorption, especially on nickel ore commodities.
On 1H20, the operating income of ANTAM’s Nickel segment (ferronickel and nickel ore commodity) recorded at Rp333.64 billion. Within 2Q20, the operating income of Nickel segment reached Rp263.06 billion, rose significantly compared to Nickel segment’s operating income of Rp70.58 billion in 1Q20. The positive growth of ANTAM’s Nickel segment profitability of was mainly driven by growth of ANTAM’s ferronickel sales in 2Q20 which in line with the international trading activity recovery and the positive improvement of global nickel price in 2Q20.
ANTAM’s Development Project
In line with the Company’s business development strategy through the development of mineral downstream initiative, ANTAM’s main project under development includes of The East Halmahera Ferronickel Plant Development Project with a production capacity of 13,500 TNi per annum in North Maluku. The completion of plant construction reached 98% at the end of 1H20. On bauxite commodity, ANTAM is currently focusing on the development of Smelter Grade Alumina Refinery (SGAR) plant in Mempawah, West Kalimantan with PT Indonesia Asahan Aluminium (Persero) with an estimated total production capacity of up to 1 million ton SGA per annum (Stage 1).
ANTAM’s Contribution on the Covid-19 Pandemic Prevention
Since the Covid-19 pandemic outbreaks in Indonesia, ANTAM conducted a series of comprehensive mitigation to maintain the stability of the Company’s operation on each business unit and subsidiary to support the sustainability of community economic activity around Company's operation area. The company also undertakes the health and readiness discipline step which integrated with the Mining Industry Holding-MIND ID health and readiness protocol on each ANTAM’s operation area.
ANTAM also synergizes with the stakeholders on pandemics handling transmission in the community. Several initiatives related to the Covid-19 prevention in the community have been conducting by the Company and its subsidiary. Among others, conducted community health socialization, assisted public sanitary apparatus & essential food aid assistance, prepared the ready Covid-19 Hospital in Jakarta as well as distributed the Polymerase Chain Reaction unit and the testing reagent to the Covid-19 Regional Task Force in Bogor, West Java and Raja Ampat, West Papua. As per June 2020, ANTAM has realized a total budget of Rp8.6 billion for an assistance support of Covid-19 handling.