ANTAM Recorded Significant Growth Performance on Production and Sales of Company's Main Commodities of Nickel, Gold And Bauxite In FY17
Construction of The East Halmahera Ferronickel Plant Development Project Remains On- Track
Jakarta, 12 March 2018 - PT ANTAM Tbk (ANTAM; ASX - ATM; IDX - ANTM) is pleased to announce significant increased of Company'soperation, sales and finance performance in FY17. In FY17 ANTAM's records positive Earning Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of Rp2.21 trillion (USD163.24 million) which growth significantly by 96% compared to EBITDA level of Rp1.13 trillion (USD84.15 million) in FY16. Higher EBITDA level was due to production and net sales increased as well as efficiency improvements which led to stable cash costs level. In FY17, ANTAM's net sales amounted at Rp12.65 trillion (USD933.98 million), a 39% increased compared to FY16. ANTAM also booked net profit of Rp136 billion (USD10.1 million) increased significantly by 111% compared to net profit in FY16 at Rp64 billion (USD4.82 million).
ANTAM's Financial Performance Remains Solid Due to Higher Production and Sales Volume in FY17
In FY17 ANTAM's net sales reached Rp12.65 trillion (USD933.98 million), with gold as the largest contributor, amounting to Rp7.37 trillion (USD544.39 million) or 58% of total FY17 net sales.
In FY17 ANTAM once again reached highest ferronickel production and sales volume for all time. ANTAM's ferronickel production volume reached 21,762 ton nickel contained in ferronickel (TNi), a 7% increase from ferronickel production in FY16. Meanwhile, ANTAM's ferronickel sales volume grew by 4% amounted to 21,813 TNi. In FY17, ferronickel sales was the second largest contributor to ANTAM's sales, amounting Rp3.22 trillion (USD237.86 million) equal to 25% of the total sales.
In FY17 ANTAM recorded gold production volume of 1,967 kg (63,240 oz) from Pongkor and Cibaliung mines. Meanwhile, ANTAM's gold sales in FY17 reached 13,202 kg (424,454 oz), a 29% increase from FY16 gold sales volume of 10,227 kg (328,806 oz) supported thru domestic and export market expansion as well as innovation of ANTAM's LM gold products. ANTAM' s gold sales in FY17 amounted Rp7.37 trillion (USD544.39 million) or grew 33% compared to FY16 at Rp5.54 trillion (USD412.59 million).
ANTAM continues its efforts to increase gold sales through market expansion. Recently, ANTAM signed a Corporative Agreement with PT Pos Indonesia (Persero) to used 205 Post Offices throughout Indonesia as sales and distributions channel. In FY17, ANTAM through its Precious Metal Processing and Refinery Business Unit officially expands the gold market distribution to Japan through new product innovation of Hello Kitty character (minted-bar Hello Kitty) gold bars. ANTAM continues its status as ASEAN's only precious metal processing and refinery unit with London Bullion Market Association (LBMA) accreditation. Further, this accreditation ensures the purity and weight of the products which are well accepted within the international market.
In FY17, ANTAM received mineral export license amounting to 3.9 million wmt (<1.7% Ni) of low grade nickel ore from the Ministry of Energy and Mineral Resources (MEMR). Total production of nickel ore in FY17 amounted to 5.57 million wmt, an increase of 241% compared to 2016. ANTAM recorded nickel ore sales volume of 2.83 million wmt, a 285% increase compared to FY16 nickel ore sales. ANTAM posted revenue from nickel ore of Rp1.37 trillion (USD101.10 million) in FY17, a 364% increase from FY16 nickel ore revenue at Rp295 billion (USD21.96 million).
In addition to nickel ore, ANTAM also obtained export quota of 850,000 wmt of washed bauxite from the MEMR. In FY17, ANTAM recorded bauxite production of 705,322 wmt, an increase of 192% compared to bauxite production in FY16. Meanwhile, in FY17 bauxite ore sales volume reached 838,069 wmt increased by 181% as compared to FY16 sales. In FY17, revenue derived from bauxite sales amounted Rp398 billion (USD29.38 million), a 283% increase compared to FY16 revenue of Rp104 billion (USD7.75 million).
In FY17, ANTAM's gross profit increased significantly by 93% to Rp1.64 trillion (USD121.33 million) compared to FY16 which is consistent to the productions and sales increased. ANTAM maintained cost of good sold to remain relatively stable at Rp11 trillion (USD812.64 million). Inline with higher gross profit, ANTAM recorded operating profit of Rp600 billion (USD44.33 million), a sharp increase of 7,264% compared to operating profit of Rp8.15 billion (USD607 thousand) in FY16. Higher operating profit helped to boost ANTAM's net profit by 111% to Rp136 billion (USD10.1 million) vs net profit of Rp64 billion (USD4.82 million) in FY16. Higher production and sales volume as well as Company's continuous effort in maintaining low cash costs level throughout FY17 had successfully increased ANTAM's EBITDA to reached Rp2.21 trillion (USD163.24 million); rising 96% from FY16 EBITDA level of Rp1.13 trillion (USD84.15 million).
ANTAM's Development Project: On Track
ANTAM solid financials result is also supported with strong cash and cash equivalents amounting of Rp5.55 trillion (USD409.70 million). The construction of ANTAM's strategic project: East Halmahera Ferronickel Plant Development Project (P3FH), remained on the track with construction progress reached 38% at the end of FY17. P3FH will have annual ferronickel production capacity of 13,500 TNi 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 (Persero) with an estimated total production capacity of up to 1 million ton SGA per annum (Stage 1).
ANTAM Received Gold PROPER Rating in FY17
In FY17, ANTAM received the Gold Rating for the first time. The Gold Mining Business Unit received Gold Rating in the Mineral Mining category whilst the Bauxite Mining Business Unit received Green Rating. ANTAM's Precious Metal Processing and Refinery Business Unit received Green Rating in Mineral Processing category. In addition ANTAM also received 3 Blue Ratings in the Mineral Mining category for: (i) the Southeast Sulawesi Nickel Mining Business Unit, (ii) North Maluku Nickel Mining Business Unit and (iii) ANTAM's subsidiary, PT Cibaliung Sumberdaya. PROPER award (The Government of Indonesia's Program for Pollution Control, Evaluation, and Rating (PROPER)) is an industrial assessment program aiming to encourage the industry adherence to environmental regulations.
ANTAM’s Positive Share Performance: ANTAM Shareholders Growth by 9.08% in FY17
From January 1st until 31st December 2017, ANTAM’s positive share performance was reflected thru the growth of its shareholders, from 33,808 number of investors to 36,877 (approximately 9.08% increase). ANTAM’s shares were also actively traded in the Indonesia Stocks Exchange (IDX). Throughout 2017, the average shares traded had reached 40,668,685 shares with an average daily trading value of Rp30.03 billion (USD2.21 million).
In 2017, ANTAM’s (ticker : ANTM) was included as part of the IDX Small-Mid Cap (SMC) Composite Index and IDX SMC Liquid Index as well as PEFINDO Investment Grade (i-Grade) 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.
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Note:
Exchange rate as per December 31, 2017, Rp13,548 /USD
Exchange rate as per December 31, 2016, Rp13,436 /USD
