Antam's Unaudited 2011 Net Profit Increased 13.5% Over 2010 To Rp1.91 Trillion
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Jakarta, 29 February 2012 – PT ANTAM (Persero) Tbk (Antam; IDX-ANTM; ASX-ATM; Antam) releases its 2011 unaudited consolidated financial statements and notes inline with the ASX Listing Rules requirements. Antam is pleased to announce unaudited consolidated net profit which increased 13.5% to Rp1.91 trillion for the full year of 2011, from the Rp1.68 trillion for the same period in 2010. The significant increase was mostly due to higher sales of ferronickel, nickel ore, and gold. Antam’s earnings per share in 2011 was Rp200.57 over Rp176.77 in 2010. Antam’s 2011 consolidated financial statements and notes are currently being audited by Public Accountant Firm Purwantono, Suherman & Surja (a member firm of Ernst and Young Global). Antam expects the full audit results to be completed by the end of March 2012 at the latest.
Antam's President Director, Alwinsyah Lubis said:
"Our 2011 results reflect a significant production and sales increase due to higher sales of our main commodities. Last year also saw the commencement of our long term strategic initiative inline with the start of the construction of the US$450 million Tayan Chemical Grade Alumina project and the US$1.6 billion East Halmahera Ferronickel Project. We are confident the financial and operational performance of the company in 2012 will remain solid and continue to deliver strong shareholders’ returns."
In 2011, Antam’s unaudited sales recorded an increase of 18% compared to 2010 to Rp10.3 trillion, mainly due to an increase in the sales of ferronickel, nickel ore, and gold. Ferronickel was the largest contributor to Antam’s 2011 revenue, contributing 36% of the total revenue or an equivalent amount of Rp3.7 trillion.
2011 was record year for Antam’s ferronickel production and sales. Antam’s ferronickel production in 2011 reached 19,690 TNi, up 5% compared to 2010. In line with strong demand, the sales volume of ferronickel reached 19,527 TNi. Antam’s ferronickel revenue in 2011 increased 1% to Rp3.7 trillion compared to 2010 despite the 2011’s lower average selling price of the commodity by 3% of US$9.83 per pound.
Similar to ferronickel, demand of nickel ore remained robust in 2011, resulting in higher nickel ore production of 13% compared to 2010 to 7,959,157 wmt, which consisted of 3,512,151 wmt of high-grade nickel ore and 4,447,006 wmt of low-grade nickel ore. The increase in the production of nickel ore was also followed by an 8% increase in the sales volume in 2011 to 6,345,742 wmt. With the increase in sales volume, Antam's nickel ore revenue rose 5% in 2011 compared to 2010 to Rp2.5 trillion.
Antam’s 2011 gold production volume reached 2,667 kg, which was comprised of Pongkor’s gold output of 1,987 kg and Cibaliung’s gold production volume of 680 kg. The gold production volume decreased 4% compared to the 2010 due to lower grades of the gold ores mined from Pongkor. As both Pongkor and Cibaliung mines are underground mines, the grades of gold ores extracted from these two mines are beyond the company’s control. Although Antam had a lower gold production, strong demand of gold boosted sales volume to 8,009 kg in 2011, an increase of 22% compared to 2010. With the increase in sales volume and average selling price of gold by 32% over 2010 to US$1,620.44 per toz, Antam’s 2011 revenue from gold reached Rp3.7 trillion, up by 56% compared to 2010.
Antam’s gross profit in 2011 rose 3% over 2010 to Rp3 trillion inline with a 26% rise in cost of sales to Rp7.32 trillion, which was largely due to significant increase of cost of precious metals purchases inline with higher gold demand. Due to higher increase of cost of sales over Antam’s revenue, gross margin was lowered to 29% in 2011 over 34% in 2010.
Antam’s operating profit rose 1% to Rp1.99 trillion in 2011 over Rp1.97 trillion in 2010. Antam’s operating margin was lowered to 19% in 2011 over 22% in 2010.
Antam’s financial structure remains strong and solid. At the end of 2011, Antam had cash and cash equivalents of Rp5.6 trillion, a 33% increase over Rp4.2 trillion in 2010. Antam had Rp3 trillion of Rupiah denominated bonds which was issued at the end of 2011 to largely fund Antam’s ferronickel smelters modernisation and optimisation projects.