0 Indonesia Miner Antam’s 2012 Profit Drops 44 Percent on Rising Costs

Aneka Tambang, a state-controlled miner, said its profit fell 44 percent last year from a year earlier amid rising costs. Net income at Jakarta-based Antam fell to Rp 1.07 trillion ($110 million) last year from Rp 1.97 trillion a year earlier, the company said in a filing to the Indonesia Stock Exchange (IDX) on Thursday. The cost of goods sold at the company rose to Rp 8.4 trillion last year from Rp 7.3 trillion a year earlier, the company said in the filing. 

Even so, revenue growth at the nickel, gold and coal producer remained almost unchanged last year, hitting Rp 10.41 trillion from Rp 10.38 trillion a year earlier. Shares of Antam fell 0.8 percent to Rp 1,280 on the IDX on Friday. The company said in early February that its 2012 production of ferronickel hit 18,490 metric tons, 7 percent lower than in 2011. Its nickel ore production rose 19 percent to 7.6 million tons, and gold production was up 7 percent to 91,597 ounces. 

“Antam’s gold production remained solid despite [a] lower-than-expected gold grade at Pongkor, which was an uncontrollable factor,” the company said in a statement on Feb. 2, referring to its facility in West Java. Antam has been granted approval from the Energy and Mineral Resources Ministry and the National Investment Coordinating Board (BKPM) to acquire a 7.5 percent stake in Nusa Halmahera Minerals, a move that will bring the miner’s total interest in the local outfit to 25 percent. 

NHM owns the rights to the Gosowong Gold Mine, a 29,622-hectare concession in Halmahera, North Maluku. The Gosowong mine contains some 6 million ounces of gold reserves. Antam in December signed the purchase agreement for the stake with Australian miner Newcrest Mining. Based on the agreement, Antam will pay $130 million in cash and an additional $30 million should a further 1 million ounces of gold reserves be discovered prior to December 2017. 

Antam is now nearing completion of its aluminum project in Tayan, West Kalimantan, saying commissioning is expected in the third quarter of this year. It has also signed a $150 million contract to build coal-fired plants in Pomalaa, Southeast Sulawesi.

source : the jakarta globe