ANTAM’s President Director, Alwin Syah Lubis said:
“Our 2010 results reflect a significant performance increase of our ferronickel business as well as higher commodities prices. In 2010, all of our ferronickel facilities performed at optimal level. The operation of our gold business is also further augmented with the commercial operation of the new Cibaliung gold mine. In 2010 we were also able to save Rp225.5 billion through various efficiency measures to manage our costs. In 2011, we aim to prioritize the start of construction of our value added, downstream projects such as the Tayan Chemical Grade Alumina plant, as well as to further solidify our existing operation facilities.”
ANTAM’s consolidated unaudited sales revenue of Rp8.745 trillion rose over Rp8.711 trillion in 2009 inline with significant increase of ferronickel sales in 2010. The increase of ferronickel sales was higher than the decrease of precious metals trading activities which was significantly reduced at the beginning of 2010 to reducethe risk of price fluctuation.
As ANTAM’s FeNi I, FeNi II and FeNi III smelters operated at optimal level in 2010, production of ferronickel jumped 49% over 2009 to 18,688 tones nickel contained in ferronickel (TNi). Coupled with higher demand, ANTAM’s ferronickel sales volume was 29% over 2009 to 18,254 TNi. Higher sales volume and a 49% increase of the average sales price of ferronickel to US$10.12 per lb., generated Rp3.679 trillion in 2010, a 71% jump over 2009. ANTAM’s nickel ore sales in 2010 also rose 20% over 2009 to 5,863,840 wmt. Higher sales volume and increased nickel ore prices also boosted revenue from nickel ore business by 39% over 2009 to Rp2.364 trillion. In 2010, ANTAM’s nickel segment contributed 69% of 2010 sales.
As ANTAM began the commercial operation of the Cibaliung gold mine, gold production rose 6% over 2009 to 2,776 kg. Sales volume of gold decreased by 49% to 6,561 kg as ANTAM significantly reduced precious metals trading activities to reduce the risk in price fluctuation. Inline with lower sales volume, revenue from gold decreased by 45% to Rp2.354 trillion despite a 26% higher gold price over 2009 to US$1,227.47 per toz.
ANTAM’s gross profit in 2010 rose 144% over 2009 to Rp2.921 trillion inline with a 22% drop in cost of sales to Rp5.824 trillion, which was largely due to significant reduction of cost of precious metals purchases. As ANTAM posted higher gross profit, gross margin jumped to 33% in 2010 over 14% in 2009.
ANTAM’s operating profit rose 238% to Rp1.988 trillion in 2010 over Rp588 billion in 2009. As such, ANTAM’s operating margin rose to 23% in 2010 over 7% in 2009.
In 2010, ANTAM’s unaudited consolidated net profit of Rp1.663 trillion was 175% higher over 2009 net profit of Rp604 billion. ANTAM’s earnings per share in 2010 was Rp174.58 over Rp63,46 in 2009.
ANTAM’s financial structure remains strong and solid. At the end of 2010, ANTAM had cash and cash equivalents of Rp4.308 trillion, a 55% increase over Rp2.774 trillion in 2009 with only Rp768.7 billion of outstanding investment loans.
