Solid Performance of ANTAM's Production & Sales During 1Q18
Positive performance of ANTAM's operation and sales of company's main commodity in 1Q18 also reflected on the achievement of ferronickel production volume that reached 6,088 ton nickel in ferronickel (TNi), rosed 107% from ferronickel production volume in 1Q17. Along with the rise on production volume, ferronickel sales in 1Q18 also improved by 109% compared to 1Q17, reached in total of 5,363 TNi. In 1Q18, ferronickel sales was the second largest contributor to ANTAM's sales, amounting Rp972.38 billion or 17% of total sales.
In 1Q18, gold commodity also recorded a positive growth. Total volume of gold production from Pongkor and Cibaliung Mine reached up to 539 kg with the total sales volume of 6,945 kg or increased by 226% compared to gold sales volume in 1Q17. The significant leap of ANTAM's gold sales aligned with ANTAM's strategy on market development for both domestic and overseas market as well as innovation on ANTAM's Logam Mulia product. ANTAM' s gold sales in 1Q18 amounted Rp4.09 trillion or grew 254% compared to gold revenue in 1Q17.
In March 2018, ANTAM received the extension of export recommendation for low grade nickel ore (< 1.7%) in amount of 2.7 million wet metric ton (wmt) and washed bauxite with Al2O3 grade in amount of 840 thousand wmt from the Ministry of Energy and Mineral Resources (MEMR) for the period of 2018-2019. In previous year, ANTAM received export recommendation for low grade nickel ore in total of 3.9million wmt, which consisted of 2.7 million wmt accepted in March and 1.2 million wmt accepted in October 2017. Meanwhile for the washed bauxite, the export recommendation granted in March 2017.
During 1Q18, ANTAM's nickel ore production reached up to 2.11 million wmt, raised by 301% year on year. Total nickel ore sales in 1Q18 amounted to 1.15 million wmt, growth significantly by 2,171% compared with 1Q17 nickel ore sales volume. In addition, bauxite commodity also delivered positive contribution for ANTAM during 1Q18 period. Bauxite production volume posted 200,300 wmt which improved by 116%, with the sales volume of 61,380 wmt, that increased by 37% compared to 1Q17 achievements.
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ANTAM's financial structure remains strong to support Company's Development Project
ANTAM solid financials result in 1Q18 is also supported with strong cash and cash equivalents amounting of Rp6,07 trillion. The construction of ANTAM's strategic project: East Halmahera Ferronickel Plant Development Project (P3FH), remained on the track with construction progress reached 55% at the end of 1Q18. P3FH will have annual ferronickel production capacity of 13,500 TNi (line 1) whereby construction is estimated to be completed by the end of 2018. After completion of P3FH, ANTAM's ferronickel annual production capacity will increase to 40,500 TNi from the existing production capacity of 27,000 TNi (increase by 50%). For bauxite, ANTAM is currently focusing on the development of Smelter Grade Alumina Refinery (SGAR) plant with PT INALUM with an estimated total production capacity of up to 1 million ton SGA per annum (Stage 1). The finalization phase of Bankable Feasibility Study (BFS) are being conducted by related parties.
ANTAM Became Part of Trade Cooperation Between Indonesia and Japan Through Gold Trades
ANTAM became part of trade cooperation between Indonesia and Japan through trading of gold-kilo bar products (gold bar 1 kg weight). The cooperation is marked through the signing of Memorandum of Understanding (MoU) between ANTAM's President Director Arie Prabowo Ariotedjo and the President Director of MKK Co. Ltd. (MKK) Akitaka Morita. The Ambassador of the Republic of Indonesia to Japan, H.E. Mr. Arifin Tasrif also witnessed the signing which was held on 27 February 2018 at the Embassy of the Republic Indonesia in Tokyo.
Through the MoU, ANTAM has the opportunity to expand its gold export market share as well as gold import from Japan through MKK for the gold-kilo bar product. Under the MoU, the monthly trading value may reach up to 200 kg for one year. ANTAM through the Precious Metal Processing and Refinery Business Unit is the only gold processing and refinery plant in Indonesia which accredited as Good Delivery List Refiner from the London Bullion Market Association (LBMA).
At the end of 1Q18, ANTAM closing share price reached Rp775 per share, improved by 22% compared to ANTAM closing share price at the early of January 2018 of Rp635 per share and growth 6% compared to closing share price at the end of 1Q17 which posted at Rp730 per share. ANTAM's positive share performance in 1Q18 was reflected thru the growth of daily average shares volume traded that reached 89.77 million shares, increased by 69% year on year. ANTAM's shares were also actively traded in the Indonesia Stocks Exchange. An average daily trading value also increased by 72% year on year or reached Rp74.69 billion per day.
In 1Q18, ANTAM's shareholders recorded at 33,946 investors. ANTAM's (ticker : ANTM) was included as part of the IDX Small-Mid Cap (SMC) Composite Index, IDX SMC Liquid Index, PEFINDO Investment Grade (i-Grade) Index, Jakarta Islamic Index as well as Kompas100 Index at the Indonesia Stock Exchange (IDX). Moreover, ANTM remains part of the LQ45 and IDX30 index at the Indonesia Stock Exchange (IDX). The LQ45 and IDX30 Index lists companies with the highest liquidity at the IDX.
