Record Positive Performance, ANTAM Optimist The Development Of The Project Downstream Company Run On Track

INDUSTRY.co.id - Jakarta - PT Aneka Tambang (Persero) Tbk continues to push the acceleration of ongoing downstream project currently completed on time. After completing the Pomala Ferronickel Expansion Project (P3FP) in Southeast Sulawesi, the company is currently developing two strategic projects namely the East Halmahera Feronickel Plant Development Project (P3FH) and the Smelter Grade Alumina Refinery (SGAR) Project in Mempawah, West Kalimantan.

Aprilandi H. Setia, Corporate Secretary of PT Aneka Tambang, said that the completion of Antam's downstream project will be supported by ANTAM's solid financial position in the first quarter of 2018 reflected in the cash value and cash equivalent of Rp 6.07 trillion.

With sufficient cash position and positive corporate financial performance in the first quarter, we are optimistic that our project can be completed on time and able to boost the company's financial performance. Currently, project development is still running on track, said Aprilandi.

The Haltim Ferronickel Plant Development Project (P3FH) is currently in the construction phase and the realization has reached 55% and planned construction of the plant will be completed by the end of 2018. While the investment value of the project is projected to reach Rp 3.5 Trillion.

With the completion of the construction of the Haltim ferronickel plant (Line 1) will increase the total installed capacity of ANTAM ferronickel by 50% of the installed ferronickel production capacity. Currently ANTAM ferronickel production capacity is 27,000 TNi, so if P3FH is completed it will be 40,500 TNi per year added.

Aprilandi also asserted that like the previous downstream project, P3FP in Southeast Sulawesi, the existence of Ferronickel Plant Development Project in East Halmahera also support the development program of basic industry of stainless steel and encourage downstream in the country.

Currently, through ferronickel smelter Pomalaa, ANTAM recorded an increase in ferronickel production volume of 107% or 6,088 tonnes of nickel in ferronickel (TNi) compared to 1Q17 performance. In line with production volume growth, ferronickel sales in the first quarter of 2018 grew 109% compared to 1Q17 or reached 5,363 TNi.

Ferronickel sales in the first quarter of 2018 was the second largest contributor to total net sales of ANTAM, with a contribution of Rp972.38 billion, or 17% of the Company's total net sales, said Aprilandi.

As for the SGAR project which is a synergy of Holding Mining Industry, April revealed that the company has now entered the finalization phase of Bankable Feasibility Study (BFS) study with related issues. ANTAM continues to focus on SGAR in cooperation with PT Inalum (Persero). Smelter Grade Alumina is the raw material of aluminum factory.

The project will be able to process the bauxite reserves owned by ANTAM and INALUM will also obtain the supply of aluminum raw materials from the country thus reducing the dependence on the import of alumina while saving foreign exchange.

This project is carried out in stages with the first phase capacity of 1 million tons of SGA per year. While 1 million tons of second stage alumina will be built after the first phase succeeds. The resulting alumina is expected to meet the needs of INALUM raw materials that are currently imported.

Financial performance

ANTAM recorded net profit for the first quarter of 2018 reached Rp245.68 billion, a sharp increase of 3,603% compared to net profit of Rp6.63 billion in the first quarter of 2017. This profitability performance is also reflected from growth in Earning Before Interest, Taxes, Depreciation, and Amortization (EBITDA) reached 95% to Rp750.38 billion in 1Q18 compared to the 1Q17 EBITDA of Rp385.68 billion.

ANTAM net sales in 1Q18 stood at Rp5.73 trillion, up sharply 247% compared to 1Q17 of Rp1.65 trillion. The gold commodity is the largest component of the Company's revenue, contributing Rp4.09 trillion or 71% of the total 1Q18 net sales. ANTAM's positive ANTAM Financial Performance growth in 1Q18 was mainly due to significant growth in production performance and sales of ANTAM's key commodities as well as an increase in efficiency that led to the stable level of ANTAM's operating cash costs.