Antam profit surges by 306 percent
Antam profit surges by 306 percent
The Jakarta Post, Jakarta
Publicly listed mining company PT Aneka Tambang said on Monday
net profit had more than tripled in the first half of this year
from the same period last year due to higher commodity prices and
nickel ore sales volumes.
Antam's net profit jumped by 306 percent to Rp 374 billion
(US$40 million) in the first half-year ending June 30, from Rp
92.218 billion in the same six-month period last year, the
company said.
Earning per share for the first half of 2004 were Rp 196.15.
"The major reason for the increased revenue are the higher
average selling prices of all Antam's products," the company
said.
The average price for nickel contained in ferronickel rose 57
percent over the first half of 2003 to $6.16 a pound. Nickel
prices have been bullish, spurred on by strong global demand,
particularly from China, and because of a limited supply.
Ferronickel sales volumes decreased 33 percent to 3,080 tons
compared to the same period last year. The company is planning to
sell 8,000 tons of contained nickel in 2004.
In the second half of 2004, the company plans to carry out an
overhaul of the FeNi II smelter facility. The plan is expected to
decrease ferronickel production and sales volume.
Higher prices of gold had offset declining sales volumes in
Antam's gold division. The price of gold has been increasing
because of geopolitical insecurity and a weaker dollar, the
company said. Antam's gold bars increased in price to $412.12 a
troy ounce -- up 18 percent from last year.
In the first six months of this year, Antam's cost of sales
increased 6 percent to Rp 692 billion. The company attributed the
increase to materials, ore exploitation services, labor costs and
depreciation. These four components accounted for 73 percent of
the total cost.
However, the increase sales costs did little to affect the
company's profit, as it was able to lower its indirect labor,
water and electricity costs and repairs and maintenance charges,
it said.
Antam's share price rose by Rp 25 to close at Rp 1,200 a share
on the Jakarta Stock Exchange.