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PrintState-controlled miner Aneka Tambang has reported an 8 percent increase in its unaudited revenue for 2013, with higher gold sales making up for a slump in prices of ferronickel.
In a statement submitted to theIndonesia Stock Exchange on Thursday, the company known as Antam said that its unaudited revenue increased to Rp 11.29 trillion ($926 million) last year from Rp 10.45 trillion in 2012.
The growth was supported by a 34 percent increase in sales volume of gold to 9,391 kilograms in 2013, amid high demand for the precious metal gold as an investment hedge. About 97 percent of Antam’s gold sales went to domestic buyers, the statement said.
To take advantage of the local retail buyers, the company opened five gold boutiques last year and plans to open up to 10 new outlets this year.
Still, Antam’s gold price was 11 percent lower than a year earlier at $1.523,23 per ounce. However, with the boost in volume, the company posted 30 percent growth in the gold sales value to Rp 3.63 trillion. Gold sales contributed about 32 percent of Antam’s 2013 revenue.
Meanwhile, its ferronickel sales volume fell 26 percent to 14,441 tons of nickel in ferronickel (TNi). Ferronickel is used in stainless and heat-resistant steels.
“With the decline of the nickel price in 2013, the company decided to reduce sales of ferronickel while waiting for improvement in the market,” the company said in the statement.
The price of ferronickel at the company fell 19 percent to $6.32 per pound, compared to $7.81 per pound a year earlier. Antam’s total revenue from ferronickel sales stood at Rp 2.07 trillion, or about 18 percent of its revenue.
Antam also mines nickel ore, silver, bauxite and coal.
This year, Antam expects to produce a combined 2,572 kilograms of gold from its mines in Pongkor and Cibaliung in Java. Antam, which also sells gold from third-party producers, is targeting sales of 13,570 kilograms of gold this year.
The company also plans to increase sales of ferronickel by 38 percent to 20,000 TNi this year in line with expectations for higher nickel prices in 2014.
The nickel price fell 18.5 percent on the London Metal Exchange last year, extending its 8.8 percent decline a year earlier. So far this year, the price of nickel has decline by 0.6 percent in London.
Shares of Antam closed 2 percent higher at Rp 1,030 on the IDX on Thursday.
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