Aneka Tambang (Antam)

Stock Quote Aneka Tambang - ANTM:

Business Summary

In 1997, Antam conducted its initial public offering (IPO) by listing 35 percent of its shares on the Indonesia Stock Exchange (IDX) in order to raise money for the expansion of its ferronickel business. In 1999, Antam listed its shares in Australia as a foreign exempt entity but augmented its status to the more stringent ASX Listing in 2002.

The scope of Antam's business activities include plantation, agriculture, forestry, property and power plant & energy. Antam intends to foster sustained growth through reliable expansion projects, strategic alliances, increasing quality reserves and adding value by moving away from selling raw materials and instead increase processing activities.

Production Volume Aneka Tambang:

	2011	2012	2013	2014	2015	2016
Ferronickel (TNi)	19,690	18,372	18,249	16,851	17,211	20,293
High Grade Nickel Ore (Wmt)	3,512,151	6,362,606	8,495,415	1,230,879	1,654,796
Low Grade Nickel Ore (Wmt)	4,447,006	3,063,011	3,025,797	28,183	—
Total Nickel Ore (Wmt)	7,959,157	9,425,617	11,521,212	1,259,062	1,654,796
Gold (Kg)	2,667	2,874	2,562	2,342	2,210	2,207
Silver (Kg)	19,518	21,547	19,709	17,962	17,319
Bauxite (Wmt)	32,748	194,190	570,721	267,292	201,517
Coal (Ton)	583,794	607,606	424,574	463,551	518,465

^{Source: Aneka Tambang, Annual Report 2016}

Antam’s nickel business segment consists of ferronickel and nickel ore produced from the company’s nickel mines in Southeast Sulawesi, North Maluku, and ferronickel plants in Southeast Sulawesi. Ferronickel is a processed product, which contains about 80 percent iron and 20 percent nickel. Antam owns three ferronickel plants: FeNi I, FeNi II and FeNi III. Total capacity of the three plants is 26,000 TNi, with an assumption of peak load of 42MW and using nickel ore with 2.38 percent content as feed. About 70 percent of nickel is consumed for the production of stainless steel, while the rest is used for various industrial purposes such as batteries, electronics, aerospace applications and land based gas turbines.

Antam’s gold and refinery business segment consists of gold, silver and precious metals processing and refinery services. Gold and silver are produced through mining activities and gold ore smelting to dore bullion. The gold ore mining is produced at two mining sites; Pongkor (West Java) and Cibaliung (Banten), both being underground mines.

The last operating segment comprises bauxite and coal. Bauxite is produced from Antam’s bauxite mine in Tayan (West Kalimantan). In line with the company's strategy to enter the downstream business, Antam will process bauxite ore in Tayan by establishing a Chemical Grade Alumina (CGA) plant. Antam also plans to build a Smelter Grade Alumina (SGA) plant in Mempawah (West Kalimantan). Coal is produced from its coal mine in Sarolangun, Jambi (Sumatra), which is operated by its sub-subsidiary Citra Tobindo Sukses Perkasa (CTSP). CTSP is a subsidiary Indonesia Coal Resources (ICR) which is owned by Antam. The Sarolangun coal mine has been in production since June 2010 with production level of 607,606 tons in 2012. ICR targets the Sarolangun to produce about 1.2 million tons in 2013. Coal reserves (non-JORC) in the area reach 8.25 million tons, with an average coal quality between 5,300 to 5,500 Kcal/kg.

Financial Highlights Aneka Tambang:

	2015	2016	2017	2018	2019
Net Sales	10,531.5	9,106.3	12,653.6
Net Profit (loss)	(1,440.9)	64.8	136.5
Gross Profit	195.1	851.8	1,643.9
EBITDA	(733.0)	883.6
Operating Income	(701.4)	8.2	600.6
Total Assets	30,356.9	29,981.5	30,014.3
Total Liabilities	12,040.1	11,572.7	15,523.9
Earnings per Share¹	(60)	2,7	5,7
Dividend per Share¹	0

 

	2010	2011	2012	2013	2014
Net Sales	8,744.3	10,346.4	10,449.9	11,298.3	9,420.6
Net Profit (loss)	1,683.4	1,927.9	2,993.1	409.9	(743.5)
Gross Profit	2,937.1	3,027.7	2,022.7	1,615.8	793.4
EBITDA	2,800.5	3,100.4	4,631.9	1,021.1	500.4
Operating Income	1,968.6	2,012.9	895.9	421.0	(137.1)
Total Assets	12,218.9	15,201.2	19,708.5	21,865.1	22,044.2
Total Liabilities	2,635.3	4,429.2	6,876.2	9,071.6	10,114.6
Earnings per Share¹	176,77	202,44	314,06	43	(78)
Dividend per Share¹	70,71	90,99	47,09	9,67	0

^{in billion IDR rupiah except stated otherwise
¹ in IDR rupiah
Source: Aneka Tambang, Annual Report 2017}

Projection Future Corporate Earnings Aneka Tambang:

	2019	2020F	2021F	2022F
Net Revenue	32,719	28,577	32,222	36,674
EBITDA	2,282	1,987	1,891	2,206
Net Profit	194	249	386	632
P/E Ratio (x)	88.6	69.1	44.5	27.2
P/BV (x)	0.9	1.0	0.0	1.0
ROA (%)	0.6	0.8	1.2	1.9

^{in billion IDR, unless otherwise stated
Source: Mirae Asset Sekuritas (04.10.2020)}

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