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Jakarta, August 31, 2023 - PT Aneka Tambang Tbk (ANTAM; IDX: ANTM; ASX: ATM) member of Mining Industry Indonesia (MIND ID) – the State-Owned Enterprise Holding of the Mining Industry, is pleased to announce the growth of the Company’s financial performance during the first six month period of 2023 (January – June 2023, 1H23). ANTAM’s solid financial performance was reflected from profit the period in 1H23 of Rp1.89 trillion, increase 24% from the profit of the period in the first six month period of 2022 (January – June 2022, 1H22) of Rp1.53 trillion. Optimizing the level of production and sales of ANTAM's main commodities supported the achievement of 1H23 Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) which reached Rp3.69 trillion, relative stable with 1H22 EBITDA.
Volatility in ferronickel selling prices, which is influenced by the level of supply and demand for nickel class-2 in the market, reflected the Company's financial performance in 1H23. Amidst these conditions, ANTAM continued to optimize the production and sales performance of nickel ore, gold and bauxite as well as taking strategic policies to meet an appropriate cost efficiency approach.
The growth of ANTAM’s profitability in 1H23 is reflected in ANTAM’s gross profit of Rp4.24 trillion, an increase of 5% from gross profit in 1H22 amounting to Rp4.03 trillion. Meanwhile, ANTAM's operating profit in 1H23 is recorded at Rp2.33 trillion, increased by 60% from the operating profit in 1H22 of Rp1.46 trillion. Supporting factors for the achievement of this, were also driven by efficient management of operating expenses, recorded in 1H23 the Company's operating expenses decreased by 25% compared to 1H22. The improvement of ANTAM’s profitability is also reflecting on the ANTAM's basic earnings per share value in 1H23 of Rp78.64, growing 24% from the 1H22 value of Rp63.50 per basic share.
The proper implementation of the Company’s operational strategy was also reflecting in the positive profitability in 1H23, was reflected from net cash provided from operating activities amounted to Rp1.69 trillion, increased by 96% compared to 1H22 of Rp861.32 billion. The strengthened of ANTAM's financial structure are also reflected from cash and cash equivalents at the end period of 1H23 reached Rp6.58 trillion, significant increased by 104% from the 1H22 position of Rp3.23 trillion.
ANTAM’s Production and Sales Performance in 1H23
Throughout the 1H23 period, ANTAM recorded a net sales value of Rp21.66 trillion, increased by 15% compared to 1H22 of Rp18.77 trillion. In 2023, in relation to the Company’s marketing strategy, ANTAM has been focusing to develop domestic-based customers for its gold, nickel ore and bauxite product. Revenue from domestic sales activity as the dominant contributor amounted Rp18.48 trillion or equal to 85% of the Company’s total net sales in 1H23.
In the 1H23 period, gold products became the largest contributor to total sales, with a proportion of 62% of ANTAM's total sales of Rp13.30 trillion, increased by 8% from the 1H22 amounted Rp12.28 trillion. During 1H23, ANTAM’s gold production volume from the Company’s gold mines posted at 594 kg (19,098 troy oz.). The achievement is inline with the gold production target in 2023 of 1,167 kg (37,519 troy oz.). Meanwhile, ANTAM gold sales volume in 1H23 reached 13,508 kg (434,292 troy oz.), increase from the 1H22 gold sales volume of 13,469 kg (433,038 troy oz.).
Pursuant to the Company’s aim to enhance Logam Mulia gold product, during the 1H23 period, ANTAM through the Precious Metals Processing and Refining Business Unit, launches the gold thematic product of the Chinese New Year 2023 AD/2574 Kongzili and Eid Al-Fitr 2023/1444 H. The gold three-dimensional (3D) pattern was equipped on the product design which was marked as the first implemented 3D gold design pattern in Indonesia. As an effort to innovate Logam Mulia gold product, on July 2023, ANTAM launches latest series of thematic silver and gold products named Indonesian Heritage. The theme 'Indonesian Heritage' was chosen by ANTAM to appreciate and honor the diversity of cultural heritage, as well as to support the uniqueness of several strategic regions in Indonesia.
In line with the Company’s aim to enhance the customers service excellence, the Precious Metals Processing and Refining Business Unit introduced ALMIRA (ANTAM Logam Mulia Virtual Assistant), an automated messaging service that is ready to help provide information and services for ANTAM's Precious Metals products. ALMIRA has been present on WhatsApp platforms at 0811-1002-002 (chat only) and ANTAM's official social media, Facebook and Instagram.
ANTAM applies the terms of online gold transactions through the Logam Mulia website, www.logammulia.com, and the ANTAM official boutique at the online marketplace platform of Tokopedia (“Butik Emas Antam Official” account), Shopee (“Butik Emas Antam Official Shop” account), and TikTok Shop (“Butik Emas Antam” account) in addition to product selling at ANTAM’s Logam Mulia Gold Boutique which located at 12 major cities in Indonesia.
The sales contribution from the Nickel Segment (ferronickel and nickel ore products) in 1H23, with a proportion of 34% of ANTAM's total sales of Rp7.43 trillion, increased by 36% from the 1H22 amounted Rp5.45 trillion. In 1H23 ANTAM’s ferronickel production volume reached 10,537 ton of nickel in ferronickel (TNi), with the ferronickel sales volume reaching 10,606 TNi, increase 10% compared to ferronickel sales volume in 1H22 of 9,622 TNi. In terms to maintain its ferronickel plant reliability (Kolaka Ferronickel plant in Southeast Sulawesi), ANTAM implements the Total Productive Maintenance initiatives to ensure the plant's operational stability and optimization performance with an efficient production cost level.
In order to strengthen the cost competitiveness and the greenhouse gas emission reduction from ANTAM’s ferronickel plant operation in Kolaka, in January 2023, ANTAM and PT Perusahaan Listrik Negara (Persero) signed a Power Purchase Agreement related to the power electricity support of the Kolaka ferronickel plant with a total power capacity of 150 megavolt-amperes (MVA).
Meanwhile, on nickel ore product, during 1H23, ANTAM consolidated nickel ore production volume are amounting to 6.81 million wet metric ton (wmt), increase 55% compared to the 1H22 production of 4.39 million wmt. The realization of production is also determined with the consolidated nickel ore sales volume during 1H23 which amounted to 6.27 million wmt, grows 106% compared to 1H22 sales volume of 3.04 million wmt.
In 1H23, the sales contribution from the Bauxite and Alumina Segment, with a proportion of 4% of ANTAM's total sales of Rp770.73 billion. During 1H23, ANTAM recorded bauxite ore production volume, which was used as ore feed for Chemical Grade Alumina (“CGA”) plant and as well as being sold to the third party customer, amounted to 851 thousand wmt. Meanwhile, bauxite ore sales volume in 1H23 reached 455 thousand wmt. On alumina product, during 1H23, total production of alumina reached 77,596 ton alumina, hiked by 5% from 1H22 alumina production of 73,893 ton alumina. The 1H23 alumina sales volume reached 72,107 ton alumina.
ANTAM’s Downstream Development Project
With regards to the Company's development projects in 2023, ANTAM is currently completing the construction phase of the ferronickel plant construction project & the supporting plant facility in East Halmahera, North Maluku, which will have an installed capacity of 13,500 TNi per annum. The initial production phase will be commenced on fourth quarter of 2023. ANTAM started the initial stage of operation of the Haltim Ferronickel Plant, in North Maluku, which was marked by the burner-on or furnace heating process on July 7, 2023. After the burner-on process is conducted, the second stage of the commissioning series is the switch-on furnace of the East Halmahera Ferronickel Plant which was carried out on July 19, 2023.
In relation to the development of the EV battery ecosystem, on January 2023, The Company with Hong Kong CBL Limited (“HKCBL”), a controlled subsidiary of CBL, signed the Conditional Share Purchase Agreement (CSPA) for ANTAM’s partial shares ownership in its Subsidiary of PT Sumberdaya Arindo (PT SDA). The CSPA signing is followed with the signing of Conditional Shareholders Agreement (Conditional SHA) by the both parties on the same occasion. After the transaction become effective, ANTAM will remain as the controlling shareholders at PT SDA. This signing is an initial step in realizing the implementation of EV Battery Ecosystem Development Project in Indonesia as well as reflecting the Company’s commitment to supporting the development of an EV Battery Ecosystem project in Indonesia.
As an effort to develop EV battery ecosystem in Indonesia, ANTAM with PT International Mineral Capital (“PT IMC”), the ANTAM subsidiary, and HKCBL, was signed the CSPA partial shares ownership in PT Feni Haltim (“PT FHT”), for development and operations of the location of integrated EV Battery (Electric Vehicle Battery) ecosystem industrial park area, as well as expansion and/or construction of a port and other infrastructure including the electric facility.
In terms of developing the bauxite downstream process, the Company is currently focusing on the construction of the Smelter Grade Alumina Refinery (“SGAR”) plant in Mempawah, West Kalimantan, which was jointly developed with PT Indonesia Asahan Aluminium with a processing capacity of 1 million tons of SGAR per annum.