ANTM – Facing pressures from a weak demand and commodity prices' fluctuations

ANTM – Facing pressures from a weak demand and commodity prices' fluctuations Aneka Tambang (ANTM) expects to book a positive performance this year due to higher sales of precious metals and the approval of RKAB 2 for nickel mines, which is to be issued in July 2024. Note that, ANTM posted sales of IDR8.62 tn (-25.64% yoy) and net profit of IDR238.87 bn (-85.67% yoy), in 1Q24. The lowered sales was due to a 458% yoy decline in nickel ore sales at IDR534.1 bn. However, both gold and alumina sales, still reached IDR7.67 tn and IDR351.5 bn, respectively. ANTM and Ningbo Contempory Brunp Group are exploring a debt financing possibilities for the RKEF FHT smelter, which is targeted to operate in early 2027. ANTM will also reduce energy costs at 2 FeNi smelters by switching to cheaper resources. The FeNi Pomalaa smelter will switch to PLN from October 2024 and is expected to reduce the electricity cost by 40% to IDR990 per kWh. Meanwhile, the FeNi P3FH smelter will use diesel power from Pomalaa, before switching to CFPP, which is located in the FTH industrial area. (Source : Kontan)