- Indonesian mining company, PT Aneka Tambang Tbk (ATM), also known as Antam, has released encouraging 2019 financial year results
- The company sold just under 1.1 million troy ounces of gold in 2019, a 22 per cent bump on 2018’s production figures
- Turning to nickel, production was up three per cent to around 25,700 tonnes and ferronickel sales were up 9 per cent
- This resulted in a gross profit of approximately $448.5 million and an operating profit of roughly $96 million
- However, Antam was quick to point out that this latter figure includes costs associated with its subsidiaries and has stated it is maintaining growth levels across the board
- Antam’s shares have been in suspension since early March, last trading for $1 each
Indonesian mining company, PT Aneka Tambang Tbk (ATM), also known as Antam, has released its 2019 financial year results.
The company’s two main commodities, nickel and gold, both showed improvement, when compared to the previous year.
Nickle production was up three per cent to around 25,700 tonnes and ferronickel sales were up 9 per cent year-on-year.
As a result of the improved figures, ferronickel sales now account for 15 per cent of total sales.
Turning to gold, the company sold just under 1.1 million troy ounces of gold in 2019, a significant 22 per cent bump on 2018’s production figures.
Gold sales brought in approximately $2.7 billion and accounted for 69 per cent of the company’s net sales.
This resulted in a gross profit of approximately $448.5 million and an operating profit of approximately $96 million. However, the company was quick to point out that this latter figure includes costs associated with its subsidiaries and stated it is maintaining growth levels across the board.
With these strong figures and cash reserves of $367.1 million, the company remains confident to progress its growth plan.
The plan includes developing a ferronickel plant on Indonesia’s Halmahera island, where construction is almost complete.
The company also recently signed a deal with the China-based nickel-alloy producer, Shandong Xinhai.
Through the arrangement, the two companies will collaboratively develop a nickel smelting facility. Currently, the project in its early stages and a pre-feasibility study is under development.
Regarding COVID-19, the company is providing a stimulus program for its business partners. The program will provide relief for businesses economically impacted by the pandemic and postpone planned payment installations for up to one year.
Furthermore, in an effort to protect staff and the surrounding communities, Antam recently sourced and distributed medical masks and other personal protective equipment.
The 2019 report did not provide a 2020 outlook and the company has not stated whether it believes the COVID-19 pandemic is likely to have a material effect on its operations.
Antam’s shares have been in suspension since early March, last trading for $1 each.