Antam's revenue in 2004 soars by 35%

Leony Aurora, The Jakarta Post/Jakarta

State-owned mining company PT Aneka Tambang has announced that its sales soared by 35 percent last year, driven by higher prices for its main commodities.

In a statement sent to the Jakarta Stock Exchange recently, the publicly listed company said that revenue jumped to Rp 2.76 trillion (US$301.8 million) in 2004 from Rp 2.04 trillion it booked the year before, despite lower production in ferronickel and gold.

Antam's corporate secretary Ashur Wasif said that last year Antam's ferronickel production dropped by 11 percent to 7,945 tons from 8,933 tons in 2003.

Prices surged by 48 percent to $6.18 per pound, spurred by strong global demand amid disruptions in the operations of giant nickel producers.

Meanwhile, the company's gold production declined by 11 percent to 3,715 kilograms in 2004 from 4,176 kilograms in the previous year.

However, average gold prices throughout last year leapt 13 percent to $411.93 per troy ounce and are expected to continue to rise this year, following an expected decline in the value of the U.S. dollar.

Antam has forecast its gold production to 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.

The average price for nickel contained in ferronickel is expected to stand at between $4.50 and $5 per pound this year, as metal brokers, the main buyers of the commodity, are expected to reduce speculation activities.

Nickel is mostly used for stainless steel and some automotive components and contributes some 65 percent to Antam's sales. Gold makes up 18 percent of their revenue, while silver, bauxite and iron mineral sands make up the rest.

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

The company's shares ended higher by Rp 10 to Rp 1,780 on the Jakarta Stock Exchange on Friday.