Jakarta, October 30, 2024 – PT Aneka Tambang Tbk (ANTM) or ANTAM announced its Interim Consolidated Financial Statements with the positive Company's financial performance during the nine months period of 2024 (January - September 2024, 9M24). The Company recorded the profit for the period of Rp2.23 trillion in 9M24. In line with this achievement, the Company’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) was recorded positive of Rp3.93 trillion in the same period.
In the face of macroeconomic conditions that affect the Company's commodity prices and conditions related to domestic regulations that have an impact on the Company's production and sales performance, ANTAM implement prudent corporate management to maintain positive performance amid challenging market conditions through operation excellence to achieve production and sales targets, aggressive marketing efforts for gold commodities and cost efficiency strategies in the Company's operations.
ANTAM President Director, Nico Kanter stated the achievement proves the company ability to maintain stability and competitiveness amids global challenges. “We remain committed to delivering the positive value for our shareholders and stakeholders,” said Nico.
In 9M24, ANTAM recorded gross profit of Rp4.10 trillion, with operating profit recorded at Rp1.86 trillion. In this period, ANTAM's operating expenses decreased by 19% to Rp 2.24 trillion compared to the nine months period of 2023 (January - September 2023, 9M23) of Rp 2.75 trillion. The decrease was mainly due to lower logistics and insurance costs in line with the nickel and bauxite commodity sales were impacted by the licence conditions during 9M24. The Company recorded a 14% decrease in finance costs in 9M24 to Rp176.49 billion compared to 9M23 of Rp205.76 billion, in line with the effort to decrease interest bearing debt in 2024 as part of its efficiency program of the Company. In 9M24, ANTAM's basic earnings per share was recorded at Rp91.60 per basic share.
In Company financial position, ANTAM recorded the total assets increase, from Rp35.50 trillion in 9M23 to Rp40.98 trillion in 9M24, or an increase of 15%. In the same period, ANTAM's total liabilities recorded a decrease of 3% or Rp10.60 trillion, from the total liabilities in 9M23 of Rp10.88 trillion. ANTAM's total equity in 9M24 amounted to Rp30.38 trillion, growing 23% from the total equity in 9M23 of Rp24.62 trillion.
ANTAM revealed a strong financial position as reflected in the decrease of interest bearing debt to Rp1.63 trillion in 9M24. This 45% decrease from 9M23 interest bearing debt position of Rp2.99 trillion is one of the efforts to improve cost efficiency in 2024. In addition, the growth of cash and cash equivalents to Rp9.60 trillion, growth 27% from Rp7.54 trillion at the end of 9M23, improves to the Company's solid liquidity foundation.
With a stable financial structure and low debt levels, ANTAM has sufficient financial flexibility to execute its strategic initiatives by capitalizing on growth opportunities through ongoing business development projects.
ANTAM's Production and Sales Performance in 9M24
In 9M24, ANTAM is still faced with operational challenges due to permit challenges. In the midst of these challenging conditions, ANTAM managed to optimize its production and sales performance especially in the nickel commodity, while increased domestic demand and the Company's marketing strategy has driven a significant increase in gold sales.
ANTAM recorded sales growth of 40% or Rp43.20 trillion compared to sales in 9M23 of Rp30.90 trillion. With the contribution of domestic net sales reached Rp39.79 trillion or equivalent to 92% of ANTAM's total net sales in the 9M24 period.
“Our strategy to strengthen the domestic customer has made a significant impact. ANTAM has strengthened its position in the domestic, and also build business resilience from global geopolitical and economic challenges,” Nico added.
In 9M24, ANTAM increased its domestic market share through Gold Segment products which contributed 83% to ANTAM's total sales with sales of Rp35.70 trillion, 85% increase from 9M23 of Rp19.29 trillion. In 9M24, ANTAM recorded total gold metal production volume from the Company's mines of 743 kg (23,888 troy oz.). Effectiveness in marketing strategy, product innovation and strengthening market share, contributed to the increase gold sales in 9M24 by 47% to reach 28,567 kg (918,450 troy oz.), compared to 9M23 sales of 19,460 kg (625,654 troy oz.).
ANTAM through the Precious Metals Processing and Refinery Business Unit, is the only gold refinery in Indonesia to be accredited as a "Good Delivery List Refiner" by the London Bullion Market Association (LBMA). To facilitate customers access to precious metal products, ANTAM opened an online gold sales channel through the official website www.logammulia.com, as well as through the marketplace platform Tokopedia (account “Butik Emas Antam Official”), Shopee (account “Butik Emas Antam Official Shop”), Blibli (account “Butik Emas Antam Official Store”) and TikTok Shop (account “@butikemasantamofficial”) in addition to offline purchase services at ANTAM's Precious Metal Boutique network spread across 12 major cities in Indonesia.
Nickel Segment sales contribution (ferronickel products and nickel ore) in 9M24 contributed 14% to ANTAM's total sales with sales value reaching Rp6.10 trillion. The Nickel Segment's sales performance was affected by permit challenges since the beginning of 2024, which impacted the Company's sales performance. During 9M24, ANTAM's ferronickel production volume reached 15,244 tons of nickel in ferronickel (TNi), with the achievement of ferronickel product sales volume during 9M24 reaching 11,691 TNi. Meanwhile, for nickel ore products, ANTAM's nickel ore production volume reached 7.30 million wet metric tons (wmt), with the achievement of ANTAM's nickel ore sales volume in 9M24 recorded at 5.71 million wmt.
In 9M24, the sales contribution of the Bauxite and Alumina Segment amounted to 3% of ANTAM's total sales with sales value reaching Rp1.16 trillion. During 9M24, ANTAM produced bauxite for the Chemical Grade Alumina (“CGA”) plant and sales to third parties amounted 637,713 wmt. ANTAM successfully marketed bauxite production in 9M24, in line with the permit obtained for the Company. In 9M24, ANTAM recorded total bauxite sales of 97,430 wmt. For alumina products, in 9M24 ANTAM through its subsidiary that operates the Tayan CGA plant, PT Indonesia Chemical Alumina, produced 105,883 tons of alumina. Sales volume of alumina products in 9M24 reached 133,065 tons of alumina, an increase of 23% from the alumina sales achievement in 9M23 of 108,351 tons of alumina.
In carrying out operations, ANTAM always implements good mining practices and operation excellence to realize a sustainable business. As a form its commitment, ANTAM accelerates initiatives to use environmentally friendly energy, thereby improve operational efficiency and reduce carbon emissions.
Sustainable Business Development through Mineral Downstreaming and Strategic Cooperation
Regarding the EV Battery Ecosystem Development Cooperation Project in Indonesia, up to 9M24, important milestones have been achieved related to initial work, licensing and preparation of project funding to support construction preparation on target.
As a commitment to downstream nickel commodities, ANTAM through its subsidiary PT Gag Nikel (“PTGN”), on October 3, 2024 has executed a purchase transaction of 30% shares of PT Jiu Long Metal Industry (“JLMI”) which is a subsidiary controlled by Eternal Tsingshan Group Limited. With PTGN's ownership in JMLI, it is expected to strengthen PTGN's nickel ore sales as well as contributions from associates so as to create added value for shareholders. Its implementation is also expected to support the Indonesian Government's efforts in developing the national electric vehicle ecosystem.
As a continuation of the Company appointment as the winner of the auction for the Specific Mining Business Licence Area (“WIUPK”) of Pongkeru Block, East Luwu, South Sulawesi, with a WIUPK area of 4,252 ha, ANTAM established cooperation with a Regional Owned Enterprise (“BUMD”). ANTAM has established a partnership with PT Sulsel Citra Indonesia (Perseroda) (“SCI”) and PT Luwu Timur Gemilang (Perseroda) (“LTG”) to form a joint venture for the development of nickel mining in the Pongkeru Block on September 13, 2024. In this cooperation, ANTAM has majority shareholder, meanwhile SCI and LTG as the Provincial and Regency BUMD have minority shares. Through this joint venture, it is expected to create synergies and collaboration in providing multiplier effect on the operation area. In addition, this cooperation can increase the control of national nickel reserves and resources.
In terms of downstream bauxite commodity, the Smelter Grade Alumina Refinery (SGAR) Mempawah Project has reached an impactful milestone with the first bauxite injection phase on September 24, 2024. This phase marks the commissioning stage of the project carried out by PT Borneo Alumina Indonesia (“PT BAI”), which is the result of cooperation between ANTAM and PT Indonesia Asahan Aluminium (“INALUM”). ANTAM will supply bauxite ore from its mines in West Kalimantan as the main raw material for alumina production to PT BAI with a production requirement of 1 million tons of alumina. With SGAR, ANTAM will strengthen its position in the bauxite supply chain, supporting Indonesia's mineral industry.
Nico said, the company's strategy aligns with the government's efforts to increase the value of domestic minerals. "We are committed to continue supporting downstream initiatives, that will provide benefit the national economy and improve the competitiveness of Indonesia's mining industry," Nico concluded.
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