State-owned Indonesian mining company PT Aneka Tambang Tbk (ANTM) has set a Capital expenditure (Capex) budget worth IDR 14 trillion, for its downstream nickel industry. The company is currently the largest nickel producer in Indonesia with several mining operations, including:
- Ferronickel operations in Pomalaa, South East Sulawesi;
- Nickel mine in Gebe Island, North Maluku;
- Gold mine in Pongkor, West Java;
- Nickel mine in Tanjung Buli, North Maluku;
- Also, ferronickel smelter units in Pomalaa.
ANTAM focuses on downstream investments
To focus on its downstream nickel industry investment, ANTAM will rely on various sources to meet its IDR 14 trillion (US$ 928 million) Capex needs. Part of the funding will come from ANTAM’s parent company MIND ID in the form of loans.
The funding will be used for downstream development and routine investment. However, there is no information regarding the exact figure of the Capex from ANTAM.
Capex funding sources for 2023 will come from internal cash, funds from holding, and bank loans. The Capex amount is still quite reasonable, said Syarif Faisal Alkadrie, to Investor Daily, on March 27, 2023.
Back in 2022, ANTAM achieved a net profit of IDR 3.82 trillion, which is 105% higher compared to 2021. ANTAM also managed to book a revenue of 19% to IDR 45.93 trillion.
According to Alkadrie, the growth was supported by the company’s efforts to optimize production performance and main commodity sales. Such as nickel, gold, and bauxite.
“Optimizing the level of production and sales of ANTAM’s main commodities supports the 2022 earnings before interest, taxes, depreciation, and amortization (EBITDA) of IDR 7.35 trillion, up 29% from 2021 of IDR 5.72 trillion,” said Alkadrie, through an information disclosure.
ANTAM also maintains books amid rising energy and raw material costs such as a gross profit of IDR 8.21 trillion in 2022, up 29% from the previous year. The company also posted an operating profit of IDR 3.94 trillion in 2022, which equals to 44% growth.
Meanwhile, ANTAM’s net profit reached IDR 1.37 trillion or grew significantly from 2021 with a value of IDR 305 billion. The growth in net profit made basic earnings per share increase by IDR 159 from the previous IDR 78 in 2021.
