JAKARTA (Yosefardi) – State miner PT Aneka Tambang (Antam) Tbk (ANTM) is confident to remain book positif earning or financial performance this year despite lackluster performance in the first quarter.
The implementation of the ore export ban policy coupled with continued low average selling prices have affected Antam to suffer loss of Rp272.6 billion in first quarter of this year.
Nonetheless, the ore ban policy has boosted commodity price level and significantly tilted the balance of global commodity supply and demand, notably nickel, begining in the second quarter of 2014.
Nickel prices have bounced back to levels unseen for the last 18 months. London Metal Exchange (LME) spot prices have averaged US$8.00 per lb for the month of April and show further signs of improvements for the rest of 2014 for a number of reasons.
Antam said it recorded positive operational performance in first quarter of this year with a 46% increase of ferronickel sales over the same period of 2013.
Antam’s bauxite production in the first quarter of 2014 jumped 186% inline with the preparation of the commercial operations of Antam’s chemical grade alumina (CGA) plant.
Antam’s diversification strategy was evidenced from the contribution of gold to the company’s first quarter of 2014 sales which amounted to 50% or equal to Rp1.16 trillion.
Antam’s capital expenditure (capex) reached Rp380.3 billion in first quarter of this year, or 13% of the company’s 2014 capex budget of Rp2.878 trillion.