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Jakarta, December 16, 2022 - PT Aneka Tambang Tbk (ANTAM; IDX: ANTM; ASX: ATM) – the State-Owned Enterprise Holding of the Mining Industry, is pleased to announce the Company’s positive financial performance growth during the First Nine Month Period of 2022 (January – September 2022, 9M22). The positive performance growth was in line with the Company’s effort to increased product added value, optimization on production and sales performance in midst of global economic improvement and the positive outlooks of base and precious metal absorption within 2022.
The positive performance of ANTAM’s profitability is reflecting on the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) in 9M22 of Rp5.41 trillion, an increase of 37% from the previous EBITDA during the First Nine Month Period of 2021 (January – September 2021, 9M21) of Rp3.94 trillion.
During the 9M22 period, ANTAM revenue was marked at Rp33.68 trillion, or a 27% increase from the 9M21 sales revenue of Rp26.48 trillion. In the midst of the upward trend of fuel price, raw material cost, and mining transportation & shipment fees, ANTAM gross profit in 9M22 are maintaining at solid level of Rp5.99 trillion, a 20% increase year over year (YoY) compared to 9M21 achievement of Rp5.00 trillion. ANTAM operating profit in 9M22 amounted to Rp2.74 trillion or increase 17% YoY from 9M21 operating profit of Rp2.35 trillion. During 9M22, ANTAM booked the total other income, net attributed of Rp910 billion, increase significantly from the 9M21 total other income, net of Rp182 billion. The Company’s consolidated net profit for the period of 9M22 amounted to Rp2.63 trillion, which rose 54% YoY from the 9M21 net profit of Rp1.71 trillion.
At the end of 9M22 period, ANTAM financial position is maintained in well condition with a cash and cash equivalent position of Rp4.62 trillion. The solid position of ANTAM’s financial structure in 9M22 is also reflected in the decrease in the Company’s liability. Throughout 9M22, the Company was able to reduce its interest-bearing debt liabilities which consist of short-term bank loans and investment loans up to Rp1.65 trillion. Moreover, ANTAM’s interest-bearing debt at the end of the 9M22 period amounted to Rp4.22 trillion which decreased to 28% from the interest-bearing debt level on December 31, 2021 of Rp5.87 trillion. ANTAM’s solid financial structure within 9M22 was also reflected in the Company's S&P Global corporate credit ratings in 2022 of "B+/outlook Positive".
Sustainability of ANTAM’s Production and Sales Performance within 9M22 Period
During the 9M22 period, ANTAM revenue amounted to Rp33.68 trillion. The revenue from domestic market sales became dominant with the contribution of Rp26.96 trillion or equal to 80% from 9M22’s net sales figure. In 2022, ANTAM has focused to develop domestic-based customers for its gold, nickel ore, and bauxite product. During the third quarter period of 2022 (July – September 2022, 3Q22) ANTAM’s net sales recorded at Rp14.91 trillion, a 65% increase from the net sales during the second quarter of 2022 (April – June 2022, 2Q22) of Rp9.03 trillion. The positive growth in Company’s revenue was attributed to a solid performance of ANTAM’s production and sales in midst of stabilization of based metal (nickel) commodity price and the demand recovery post the COVID-19 lockdown condition in East Asia during the 2Q22 period. In addition, the positive recovery of the National economy as well as the growth of public enthusiasm in gold investment also bring a positive tone to ANTAM’s gold product absorption in domestic market within the 3Q22 period.
During 9M22, ANTAM’s gold product sales became the largest contributor to total sales with a contribution of Rp23.53 trillion or 70% of ANTAM’s total sales. Furthermore, within 9M22, ANTAM gold sales volume achieved 25.93 ton, an increase 31% compared to the 9M21 sales volume of 19.87 ton. In 3Q22, ANTAM gold sales performance was growing by 81% to 12.46 ton compared to the 2Q22 period sales of 6.89 ton of gold. In terms of gold production, during 9M22, the gold outputs from the Company’s mine amounted to 967 kg. The profitability of the Company’s Precious Metals and Refinery remains solid with the segment’s net profit for the period of 9M22 marked at Rp1.75 trillion or an 45% increase YoY from the 9M21 period of Rp1.20 trillion.
In line with ANTAM strategy to enhance the added value of Logam Mulia gold products, in October 2022, ANTAM through the Precious Metals Processing and Refining Business Unit, launches the Indonesian Batik Gold Series III with the motifs of Batik Bokor Kencono, Batik Huk, Batik Srimanganti, and Batik Mahkota Siger. Besides the form of gold bar, these product is also present in jewelry and pendants form.
In addition to maintain excellent service to the gold customer, 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 11 major cities in Indonesia.
In 9M22, ANTAM’s ferronickel product becomes the second largest contributor of Rp4.91 trillion or 15% from Company’s revenue. During 9M22 period, ferronickel sales volume amounted at 17,069 ton nickel within ferronickel (TNi) with the sales amount within 3Q22 period booked at 7,446 TNi, increase 88% from 2Q22 production volume of 3,962 TNi. In addition to the ferronickel production volume in 9M22 amounted to 18,088 TNi, in line with the yearly production target fulfilment of 24 thousand TNi in 2022.
Meanwhile for the nickel ore commodity, in 9M22, 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 6.22 million wet metric ton (wmt) with the production volume in 3Q22 of 1.82 million wmt or increased 23% of 2Q22 production volume at 1.48 million wmt. The nickel sales volume during 9M22 amounted to 4.75 million wmt with 3Q22’s nickel ore sales of 1.71 million wmt, elevating 142% from the 2Q22 nickel ore sales of 708 thousand wmt in line with the domestic demand recovery and stabilization of nickel price. During 9M22, the profitability of ANTAM's Nickel Segment (ferronickel and nickel ore products) remained solid. The sales contribution of the Nickel Segment in 9M22 reached Rp8.48 trillion, growing 12% YoY from the 9M21 sales of Rp7.60 trillion. The Nickel Segment's net profit for the period of 9M22 reached Rp2.93 trillion.
In 9M22, ANTAM’s Bauxite and Alumina Segment delivered a positive contribution to the Company’s consolidated profitability. Bauxite production volume in 9M22 reached 1.34 million wmt with bauxite sales figure amounted to 936 thousand wmt, a 3% increase from the sales volume in 9M21 of 910 thousand wmt. In addition to export sales, in 2022, the Company will also focus on developing domestic sales of bauxite ore. On Chemical Grade Alumina (CGA) product, during 9M22, as many as 115,875 ton alumina was produced, a rose to 108% from the alumina production volume of 55,814 ton alumina in 9M21. Moreover, the alumina sales volume reached 114,422 ton alumina in 9M22, or an increase of 22% from the sales volume in 9M21 at 93,869 ton alumina.
Throughout 9M22, the net sales contribution from Bauxite and Alumina Segment amounted to Rp1.44 trillion, which rose 50% YoY from the 9M21 period of Rp959.24 billion. The segment profitability improvement is also reflected in the net profit for the period for the Bauxite and Alumina Segment in 9M22 of Rp227.16 billion, significantly improved from the segment’s net loss for the period in 9M21 of Rp507.38 billion.
Focused on Mineral Downstream Program in order to Company’s Business Development
With regards to the Company's development projects in 9M22, 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.
As part of the implementation of the nickel-based electric vehicle battery industry development initiative, on 23 August 2022, the Company held has conducted the Extraordinary General Meeting of Shareholders (EGMS) to seek the shareholder's approval for the partial spin-off of the Company's nickel segment in East Halmahera, North Maluku to the Company controlled subsidiary entity name PT Nusa Karya Arindo (NKA) and PT Sumberdaya Arindo (SDA). As a follow-up of the EGMS resolution, on September 30, 2022, the spin-off process of the partial ANTAM’s nickel business segment in East Halmahera has already been done through the signing of partial assets and liabilities spin-off deeds with PT NKA and SDA.
In addition, in line with ANTAM’s initiative to develop the added value of nickel ore laterite commodity into a raw material for EV Battery manufacturing, in November 2022, ANTAM and CNGR Hong Kong Material Science & Technology Co., Ltd. (CNGR) signed a Framework Agreement as a follow-up of to the Head of Agreement (HoA) for the construction and development of industrial area for the downstreaming of nickel ore into battery raw material, which was previously signed by both parties on August 5, 2022.
Under the Framework Agreement between ANTAM and CNGR, ANTAM through its subsidiary PT Kawasan Industri Antam Timur (PT KIAT) will develop and manage the industrial park within ANTAM’s Mining Concession Area in Pomalaa, Southeast Sulawesi. Moreover, CNGR through its subsidiary PT Pomalaa New Energy Material (PT PNEM) will develop a nickel laterite ore processing facility into nickel matte, which becomes raw material for electric vehicle batteries, using the OESBF (oxygen-enriched side-blown furnace) technology owned by CNGR. The plan will be built through two development phases with a total production capacity of 80,000 tons of nickel within matte per annum. PT PNEM will become a tenant in the industrial area managed by PT KIAT. Through this synergy, both CNGR and ANTAM also had an opportunity to participate in share ownership in each of subsidiaries, PT PNEM and PT KIAT. The development of industrial park and nickel processing facility would be planned to finish and start to operate in 2025.