Antam's profit more than triples to Rp 826 billion

Leony Aurora, The Jakarta Post, Jakarta

State mining company PT Aneka Tambang (Antam) saw its 2004 profit soar to Rp 826 billion (US$89.3 million), more than triple its 2003 profit, due to stronger prices in the global market.

Unaudited net income shot up from Rp 227 billion in 2003 as revenue increased by 29 percent to Rp 2.76 trillion this year, the publicly listed company said in a statement sent to the Jakarta Stock Exchange recently.

Antam's shares ended Rp 275 higher, or 13 percent, at Rp 2,425 upon the news on Tuesday, the highest jump since the company went public in November 1997.

Antam is 65 percent owned by the government and 35 percent by the investing public.

Antam managed to reap a higher revenue due to higher prices of its main commodities -- nickel products, gold and silver -- as well as a bigger volume of nickel matte.

The average price of ferronickel rose 48 percent last year to $6.18 per pound spurred by strong global demand amid disruptions in the operations of giant nickel producers.

Sales from the company's nickel products rose by 40 percent to Rp 2.06 trillion, some 75 percent of total revenue.

Gold prices also jumped as the U.S. dollar weakened last year to $411.93 per troy ounce, a 13 percent increase from the average price in 2003.

Operational income more than doubled to Rp 1.1 trillion last year from the Rp 448 billion the company booked the previous year.

In the statement, Antam forecast that the prices of nickel and gold would continue to rise this year along with worldwide demand and the weakening trend of the U.S. dollar.

The company estimated its gold production would increase by 6.6 percent in 2005 to about 4,000 kilograms following the full operation of its gold mine in Bogor, south of Jakarta, which was disrupted by fire early last year.

Ferronickel production will return to normal this year after experiencing a decline of 11 percent to 7,945 tons last year with the completion of its factory FeNi II's overhaul.

Production is expected to increase significantly in 2006 after the opening of the planned FeNi III factory, which has secured funds to finance its construction.

Antam plans to spend Rp 881 billion on the construction of the new plant and Rp 87 billion for routine expenditures this year.