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Higher prices resulted in strong earnings growth as net
sales increased 34% to Rp2.9 trillion and net income
surged 256% to a record Rp807 billion.
- Higher prices offset lower production as the operating
margin widened to 38% from 21%.
- Operating cash flow jumped 60% to Rp768 billion,
which allowed Antam to borrow less than planned
to fund construction of FeNi III and maintain strong
liquidity.
- Notwithstanding the cash requirements for FeNi III,
which is fully funded, Antam’s operation generated
more than enough cash to pay for expenditures, repay
debt and cash dividends.
- The Board of Directors paid an interim dividend of
Rp19.60 per share. Including the 32.5% of 2003 net
profit, or Rp38.60 per share, the total value of cash
returned to shareholders in 2004 amounted to Rp111
billion (US$12m).
- Absolute returns to shareholders, or return on equity,
increased from 13% to 38%. Operating efficiency
as measured by return on assets doubled from 7% to
16%.
- Increases in unit costs of producing gold and nickel were
below industry average.
- To ensure medium to long term growth, Antam held talks
with Japanese, Korean and Australian firms regarding
developing a fourth ferronickel smelter, FeNi IV and a
hydrometallurgical project.
- Antam signed an MOU to jointly develop gas field in
North Sulawesi as Antam seeks cheaper fuel sources in
light of fuel subsidy removals.
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