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Jakarta, October 30, 2023 - PT Aneka Tambang Tbk (ANTAM; IDX: ANTM; ASX: ATM) member of PT Mineral Industri Indonesia (Persero) (MIND ID) – the State-Owned Enterprise Holding of the Mining Industry, is pleased to announce the growth of the Company’s financial performance during the first nine month period of 2023 (January – September 2023, 9M23), with profit the period in 9M23 of Rp2.85 trillion, increase 8% from the profit of the period in the first nine month period of 2022 (January – September 2022, 9M22) of Rp2.63 trillion. ANTAM’s positive financial performance was reflected from the achievement of 9M23 Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) which reached Rp5.40 trillion, a consistent achievement compared to 9M22 EBITDA.
In 9M23, ANTAM’s gross profit recorded of Rp6.10 trillion, increase 2% from the gross profit in 9M22 amounting to Rp5.99 trillion. Meanwhile, ANTAM's operating profit in 9M23 is recorded at Rp3.35 trillion, increased by 22% from the operating profit in 9M22 of Rp2.74 trillion. Supporting factors for the achievement of this, were also driven by the management of operating expenses, recorded in 9M23 the Company's operating expenses of Rp2.75 trillion, decreased by 15% compared to 9M22 of Rp3.25 trillion. The improvement of ANTAM’s profitability is also reflecting on the ANTAM's basic earnings per share value in 9M23 of Rp118.54, growing 8% from the 9M22 value of Rp109.31 per basic share.
Regarding the Company's financial position, in 9M23, ANTAM was able to strengthen the financial structure as reflected in ANTAM's consolidated equity value of Rp24.62 trillion, which increased by 9% from the equity value in 9M22 of Rp22.57 trillion. In 9M23, ANTAM's total liabilities reached Rp10.88 trillion, a decreased of 3% from the value of liabilities in 9M22 of Rp11.22 trillion. The Company's total assets in 9M23 reached Rp35.50 trillion, growing 5% from the total assets in 9M22 of Rp33.79 trillion.
The proper implementation of the Company’s operational strategy was also reflecting in the positive profitability in 9M23, was reflected from net cash provided from operating activities amounted to Rp3.98 trillion, increased by 93% compared to 9M22 of Rp2.06 trillion. The strengthened of ANTAM's financial structure are also reflected from cash and cash equivalents at the end period of 9M23 reached Rp7.54 trillion, increased by 63% from the 9M22 position of Rp4.62 trillion.
Sustainability of Production and Sales Performance for the 9M23 Period
Throughout the 9M23 period, ANTAM recorded a net sales value of Rp30.90 trillion, with the dominant contribution coming from domestic net sales, which reached Rp26.69 trillion or equivalent to 86% of ANTAM's total net sales for the 9M23 period. This performance aligns with the Company's strategy to develop its domestic customer base for gold, nickel ore, and bauxite products.
In the 9M23 period, gold products became the largest contributor to total sales, with a proportion of 62% of ANTAM's total sales of Rp19.29 trillion. During 9M23, ANTAM’s gold production volume from the Company’s gold mines posted at 908 kg (29,193 troy oz.). Meanwhile, ANTAM gold sales volume in 9M23 reached 19,460 kg (625,654 troy oz.).
Pursuant to the Company’s aim to enhance Logam Mulia gold product, during the 9M23 period, ANTAM through the Precious Metals Processing and Refining Business Unit, launches the gold thematic product of the Chinese New Year 2023 AD/2574 Kongzili and Eid Al-Fitr 2023/1444 H. The gold three-dimensional (3D) pattern was equipped on the product design which was marked as the first implemented 3D gold design pattern in Indonesia. Moreover, as an effort to innovate Logam Mulia gold product, ANTAM launches latest series of thematic silver and gold products named Indonesian Heritage. The theme 'Indonesian Heritage' was chosen by ANTAM to appreciate and honor the diversity of cultural heritage, as well as to support the uniqueness of several strategic regions in Indonesia.
In addition, to improve the quality of excellent service in gold sales to customers, the Precious Metals Processing and Refining Business Unit introduced ALMIRA (ANTAM Logam Mulia Virtual Assistant), an automated messaging service that is ready to help provide information and services for ANTAM's Precious Metals products. ALMIRA has been present on WhatsApp platforms at 0811-1002-002 (chat only) and ANTAM's official social media, Facebook and Instagram.
ANTAM applies the terms of online gold transactions through the Logam Mulia website, www.logammulia.com, and the ANTAM official boutique at the online marketplace platform of Tokopedia (“Butik Emas Antam Official” account), Shopee (“Butik Emas Antam Official Shop” account), and TikTok Shop (“Butik Emas Antam” account) in addition to product selling at ANTAM’s Logam Mulia Gold Boutique which located at 12 major cities in Indonesia.
The sales contribution from the Nickel Segment (ferronickel and nickel ore products) in 9M23, with a proportion of 33% of ANTAM's total sales of Rp10.10 trillion, increased by 19% from the 9M22 amounted Rp8.48 trillion. In 9M23 ANTAM’s ferronickel production volume reached 15,787 ton of nickel in ferronickel (TNi), with the ferronickel sales volume reaching 14,132 TNi.
Meanwhile, on nickel ore product, during 9M23, ANTAM consolidated nickel ore production volume are amounting to 10.67 million wet metric ton (wmt), increase 72% compared to the 9M22 production of 6.22 million wmt. The growth in nickel ore production is aimed to supporting the fulfillment of increasing the domestic market demand. The consolidated nickel ore sales volume grows positively during 9M23 which amounted to 9,41 million wmt, grows 98% compared to 9M22 sales volume of 4.75 million wmt.
In order to strengthen the cost competitiveness in nickel segment and the greenhouse gas emission reduction from ANTAM’s ferronickel plant operation in Kolaka, in January 2023, ANTAM and PT Perusahaan Listrik Negara (Persero) signed a Power Purchase Agreement related to the power electricity support of the Kolaka ferronickel plant with a total power capacity of 150 megavolt-amperes (MVA).
In 9M23, the sales contribution from the Bauxite and Alumina Segment, with a proportion of 4% of ANTAM's total sales of Rp1.25 trillion. During 9M23, ANTAM recorded bauxite ore production volume, which was used as ore feed for Chemical Grade Alumina (“CGA”) plant and as well as being sold to the third party customer, amounted to 1.42 million wmt, grow 6% compared to 9M22 of 1.34 million wmt. Bauxite sales volume in 9M23 was recorded at 989 thousand wmt, an increase of 6% compared to the achievement in 9M22 of 936 thousand wmt. Meanwhile, the sales volume of alumina products in 9M23 reached 114,524 tons of alumina, with the sales volume of alumina products in 9M23 reaching 108,351 tons of alumina.
Business Development through Strengthening Downstream Minerals
In accordance with ANTAM's commitment to focus on completing the Company's strategic projects in 2023, ANTAM has started the initial stage of operation of the Haltim Ferronickel Plant, which was marked by the burner-on or furnace heating process on July 7, 2023. After the burner-on process is conducted, the second stage of the commissioning is the switch-on furnace of the Haltim Ferronickel Plant was held on July 19, 2023. The next stage is the first metal tapping was held on September 12, 2023.
As ANTAM supports in achieving net zero emission in 2060 initiated by the Government, ANTAM continuously implements green energy in the Company's operational areas. In line with that, ANTAM is involved in developing an integrated Electric Vehicle (EV) Battery Ecosystem in Indonesia with strategic partners. ANTAM's involvement in this project is also a form of the Company's business development through the nickel minerals downstream.
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 Aluminium with a processing capacity of 1 million tons of SGAR per annum.
The Company's business prospects advancement, through the nickel downstream development initiative for EV Battery industry chain and the Company's gold commodity business, and also ANTAM improvement of financial prospects have led to an increase in credit rating by S&P Global Ratings from B+/outlook positive to BB+/outlook stable.