PT Aneka Tambang Tbk announces today consolidated audited net profit of Rp604.3 billion for full year 2009, a decrease of 56% over the previous corresponding period, due largely to decreased nickel sales and prices. Antam has previously anticipated lower performance in 2009 as global economic crisis lowered nickel demand and prices. As such, Antam lowered its ferronickel and nickel ore production and sales targets for 2009 compared to 2008 actual performance.
Antam’s sales revenue decreased 9% to Rp8,711 billion due to lower nickel prices and sales. Nickel prices decreased 32% to US$6.77 per lb. due to a global economic crisis which lowered nickel demand. The decreased global demand also lowered demand for Antam’s ferronickel and nickel ore. On the contrary, gold demand and prices increased sharply amidst decreased value of the US Dollar and increased global insecurity.
Despite higher gold demand,Antam was unable to raise its gold production given the constraints of the underground gold mining at Pongkor mine. Gold was Antam’s biggest contributor in terms of sales in 2009 with a value of Rp4,321 billion or a 58% increase over 2008.
Antam’s gold segment (gold, silver and precious metal refinery services) generated Rp4,786
billion in revenues in 2009, an increase of 64% over 2008. The gold segment accounted for 55% of Antam’s total revenues in 2009. Gold sales increased 31% to 12,893 kg due to increased
demand. In 2009, gold production reached 2,626 kg, below the company’s target of 2,821 kg due to lower grades. Due to lower gold production, silver production in 2009 reached 22,589 kg, a decrease of 11% over 2008.
Antam’s gold segment (gold, silver and precious metal refinery services) generated Rp4,786
billion in revenues in 2009, an increase of 64% over 2008. The gold segment accounted for 55% of Antam’s total revenues in 2009. Gold sales increased 31% to 12,893 kg due to increased
demand. In 2009, gold production reached 2,626 kg, below the company’s target of 2,821 kg due to lower grades. Due to lower gold production, silver production in 2009 reached 22,589 kg, a decrease of 11% over 2008.
Although Antam’s gold and silver increased significantly, this was not reflected in the profitability margins as 80% of gold and silver sales came from trading activities. However, due to increased sales volume and price, revenue from gold increased 58% over 2008 to
Rp4,321 billion. Antam’s realised gold price of US$970.97 per toz. was an 11% increase over 2008. Sales of silver rose 153% to 87,187 kg inline with higher trading activities. Higher sales volume coupled with a 5% increase of silver price of US$15.01 per toz. resulted in revenue from silver rising 174% over 2008 to Rp429 billion.
In 2010 Antam expects gold production of 2,580 kg and additional 500 kg from Cibaliung Project as well as total sales of 7,980 kg, including trading, respectively. Antam will target silver production and sales of 23,474 kg and 50,494 kg, including trading, respectively, in 2010.
Rp4,321 billion. Antam’s realised gold price of US$970.97 per toz. was an 11% increase over 2008. Sales of silver rose 153% to 87,187 kg inline with higher trading activities. Higher sales volume coupled with a 5% increase of silver price of US$15.01 per toz. resulted in revenue from silver rising 174% over 2008 to Rp429 billion.
In 2010 Antam expects gold production of 2,580 kg and additional 500 kg from Cibaliung Project as well as total sales of 7,980 kg, including trading, respectively. Antam will target silver production and sales of 23,474 kg and 50,494 kg, including trading, respectively, in 2010.
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