ANTM Records IDR 496.12 B Losses

ANTM Records IDR 496.12 B Losses

Aneka Tambang Tbk (ANTM) recorded net loss amounting to IDR 496.12 billion in the first half of 2017 compared to IDR 11.03 billion in the same period last year due to the increasing financial expenses and loss in the associate entity and joint venture.

The financial report shows sales in the first half of 2017 declined 27.6 percent to IDR 3.01 trillion from IDR 4.16 trillion in the same period last year. On the other hand, the financial expenses surged by 114.99 percent to IDR 304.17 billion, as well as losses in associate entity and joint ventures by 178.09 percent to IDR 162.49 billion. ANTM recorded EBITDA amounting to IDR 361.8 billion, growing 35 percent over the same period last year.

Arie Prabowo Ariotedjo, President Director of ANTM, said that the company’s financial performance was influenced by the decrease in ferronickel and gold sales volume and commodity price volatility. The average nickel price reached USD 4.55 per pound while the gold price reached USD 1,272 per oz.

The company’s ferronickel production volume rose 12 percent to 9,327 TNi. However, ferronickel sales volume fell four percent to 7,791 TNi. “The decline in ferronickel sales volume is the impact of the roof replacement work in Electric Smelting Furnace-3 (ESF-3) and the optimization of FeNi III production facility which has a production capacity of 10,000 TNi per year,” said Arie.

The roof replacement was completed in March 2017 and the production of FeNi III smelter in Pomalaa is back to normal. The decrease in ferronickel sales volume was also due to the company’s policy to export most of its ferronickel in the second half with the average nickel price which is expected to be better. As of September
2017, the average price has reached USD 5.43 per pound.

The gold production volume was stable at 1,013 kg. Gold sales volume dropped 38 percent to 3,298 kg due to disruptions to precious metal refining facilities that occurred in early 2017. This has been overcome and gold refining process is back to normal. (*)

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