Antam Remains Profitable In First Half 2012 In The Midst Of Volatility In Global Economic Conditions
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Jakarta, August 31, 2012 – PT ANTAM (Persero) Tbk. (ASX - ATM; IDX – ANTM; Antam) announces today consolidated income (for the period attributable to owners of the parent) of Rp476 billion and earnings per share (EPS) of Rp49.97 for the first half of 2012. Antam remained profitable in the midst of volatility in global commodity prices.
Antam's President Director Alwinsyah Lubis said:
"We remained profitable in first half of 2012 despite volatility in global commodity prices. We have put cost reduction as our top priority. We expect to save Rp8 billion in expenses up until July this year through various efficiency measures. Despite market volatility we are determined to continue construction of our main projects during this period. Construction of the Tayan CGA Project has reached 83% with construction of the East Halmahera Ferronickel project reaching 25%."
Revenue for the six months ending June 30th, 2012 amounted to Rp4.5 trillion as Antam posted higher sales of gold and nickel ore. Gold contributed 41% of Antam's sales in first half of 2012. During the first semester of 2012, Antam also received a 39% higher dividend payment from its joint venture, PT Nusa Halmahera Minerals amounting to Rp238 billion.
As of June 30, 2012, Antam's cash and cash equivalents of Rp5.2 trillion consisted mainly of cash in banks and time deposits with several national and international banks. As of June 30, 2012, interest bearing liabilities, in the form of Rupiah denominated bonds, amounted to Rp3 trillion. Antam's liquidity remained solid with current ratio of 4.9x as of June 30, 2012. Antam also remained strong in its financial structure in the midst of commodity prices volatility with interest bearing debt to equity ratio of 29%. In view of its healthy financial structure, Antam adheres to prudent and conservative financial philosophy.
As of end of July 2012, construction of Antam's key projects, the Tayan Chemical Grade Alumina (CGA), the East Halmahera Ferronickel, and the Modernisation -Optimisation of Pomalaa Ferronickel Smelters, which includes the development of Coal Fired Power Plant, were on track and on schedule.
As at the end of July 2012, construction of Tayan CGA project reached 83%, with construction of the East Halmahera Ferronickel project, and the MOP-PP project reached 25% and 22%, respectively. As construction on these projects have started, Antam expects at least the Tayan CGA project can start operations in 2014 following commissioning period in 2013.
Antam currently also develops two other main projects: the Mempawah Smelter Grade Alumina (SGA) project and the Mandiodo Nickel Pig Iron project. Both projects are currently under completion of feasibility study and basic design stage.