Indonesian Coal Mining Companies in Focus: Aneka Tambang (Antam)
One of the companies, listed on the Indonesia Stock Exchange, that is experiencing a very good performance so far in 2018 is vertically integrated and diversified mining and metals company Aneka Tambang, a state-controlled entity. Not only did the company's corporate earnings and production figures surged in the first quarter of 2018 on the back of stronger commodity prices (and rising demand), but shares of Aneka Tambang also soared - by a whopping 45.60 percent - up to Friday (22/06).
Net sales of Aneka Tambang (better known as Antam) rose 247.2 percent year-on-year (y/y) to IDR 5.73 trillion (approx. USD $409 million) in the first quarter of 2018. Meanwhile, the company's net profit soared 3,605.6 percent (y/y) to IDR 245.68 billion (approx. USD $17.5 million) in Q1-2018. These impressive corporate earnings came on the back of strengthening commodity prices and growing demand for metal commodities on the international market.
Key mining commodities that are produced and exported by Antam are ferronickel, nickel ore, gold, bauxite, and silver.
Amid growing demand for mining commodities, Antam's production of ferronickel rose 107 percent (y/y) to 6,087 TNi in Q1-2018. Meanwhile, the company's ferronickel sales reached 5,363 TNi, up 109 percent (y/y) from 2,562 TNi in the first quarter of 2017.
Antam's sales of gold (gold being the largest contributor to the company's Q1-2018 revenue as they contributed 71 percent to Antam's total net sales that quarter) grew 226 percent (y/y) from 2,128 kg (68,384 oz) in Q1-2017 to 6,945 kg (223,286 oz) in Q1-2018. Meanwhile, its nickel ore sales reached 2.11 million wet metric ton (wmt), up 302 percent (y/y) compared to the first quarter of Q1-2017.
Based on a statement from Antam President Director Arie Prabowo Ariotedjo the company is increasingly focused on downstream projects (in line with the desire of the central government to reduce Indonesia's reliance on raw commodity exports). Therefore, Antam is approaching the completion of its new ferronickel plant in East Halmahera. This plant, which is established in cooperation with state-controlled construction company Wijaya Karya, is designed to have a production capacity of 13,500 tons per year. Progress of the project is estimated at 65 percent (per end-May 2018).
Antam is also eager to develop a ferronickel plant on Gag Island in West Papua. The company is now searching for a business partner to establish the plant.
Stock Quote Aneka Tambang - ANTM:
Meanwhile, together with parent company Indonesia Asahan Aluminium (Inalum) Antam is developing a smelter grade aluminum plant in West Kalimantan. This smelter will have a one million tons capacity per annum.
Lastly, in late May-2018, Antam acquired the 20 percent stake of Japanese company Showa Denko to become the sole owner of Indonesia Chemical Alumina. This company is the operator of the Chemical Grade Alumina (CGA) plant in Tayan (West Kalimantan). Antam and Showa Denko had been working together since 2013 through a joint venture. However, in late 2017 the Japanese-based company said it wanted to exit the joint venture. The negative side-effects of losing this partner is that Antam will now need to finance the Tayan plant by itself, while it will also miss out on valuable future technological input from the Japanese company.
Corporate Earnings Aneka Tambang:
| 2015 | 2016 | 2017 | |
| 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 | 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