Antam reports reduced profit

JAKARTA (JP): Publicly listed gold and nickel mining company PT Aneka Tambang (Antam) reported on Tuesday a 70 percent decline in net profit to Rp 34.06 billion (about US$4 million) in the first quarter this year, from Rp 112.45 billion in the same period last year.

The company attributed the downturn to lower prices and falling production.

The company said the average nickel price plunged by 22 percent to $1.91 per pound during the first quarter this year, from an average of $2.45 per pound in the same period last year.

The decline in first quarter earnings was also due to a slump in the production of ferronickel and gold, which met the total target set for the first quarter of 1999, but was respectively 57 percent and 40 percent short of the volume sold in the corresponding period in 1998.

Earnings for the first quarter of this year were also lower than those in 1998, following the strengthening of the rupiah against the dollar to reach Rp 8,799 per U.S. dollar this year, compared to Rp 9,091 per dollar last year, the company said. (cst)