Professional Documents
Culture Documents
Presentation
This presentation also contains certain statistical data and analyses (the Statistical Information) which have been prepared in reliance upon information furnished by the Company and other sources.
Numerous assumptions were used in preparing the Statistical Information, which assumptions may or may not appear herein. No assurance can be given as to the Statistical Informations accuracy,
appropriateness or completeness in any particular context, nor as to whether the Statistical Information and/or the assumptions upon which it is based reflect present market conditions or future market
performance. The Statistical Information should not be construed as either projections or predictions or as legal, tax, financial, accounting or investment advice.
1
Table of contents
Quick Updates
Company Overview
Commodities Outlook
Main Projects
2
Quick Updates of ANTAM
Relaxation of Indonesias Mineral Export Ban: ANTAM Secured 2.72
1 million wmt of nickel ore and 850,000 wmt of bauxite ore export permits
8
Creation of Mining Industry Holding SOE
3
Company Overview
ANTAM at A Glance
Company Description 1Q17 Sales Breakdown
ANTAM is one of the largest listed diversified metals and Ferronickel
mining companies in SEA with vertically integrated Bauxite, 22%
operations Alumina,
Coal &
The Company is export oriented with main markets in South Nickel Ore
Korea, China and India 4%
5
Integrated Mining Company with Diversified Portfolio of
Processed Metals
Upstream and Downstream Operations
Pomalaa Nickel Buli Nickel Mine Pongkor and Cibaliung Tayan Bauxite Mine
Mine Gold Mines
Downstream
ANTAM is uniquely positioned as a vertically integrated mining company with diversified products
6
ANTAMs Finished Products
PRECIOUS METAL
Minted bar & Batik motif Dinar & Dirham coins Casting based products
Precious Metal
Pomalaa Nickel Pomalaa
Cibaliung Gold Mine Pongkor Gold Mine Processing and Buli Nickel Mine
Mine Ferronickel Plant
Refinery
*ANTAM owns 25% of PT Nusa Halmahera Minerals with the remaining owned by Newcrest Mining Ltd.
8
Reserves and Resources
Vast Nickel Ore Large Bauxite Ore Substantial Gold Ore
Reserves and Resources(1) Reserves and Resources(2) Reserves and Resources(3)
(million wmt) (million wmt) (million dmt)
589.5 589.5
9.7
954.1
857.8 8.6
4.3
131.1 131.1
111.4 111.3
164.3
130.5
72.5 81.1
2015 2016
2015 2016 2015 2016
Reserves Resources Avg. Mine Life (yrs) Reserves Resources Avg. Mine Life (yrs) Reserves Resources Avg. Mine Life (yrs)
Long reserves life with robust growth outlook from large undeveloped resource base
Based on Competent Person Report as of 31 December 2015 and 2016, JORC Compliant
(1) Approximately 75-90 wmt of nickel saprolite is required to produce 1 ton of nickel contained in ferronickel. Mine reserves life
takes into account current ferronickel production of 27,000-30,000 tonnes of contained nickel in ferronickel (TNi) with saprolite
nickel ore feed.
(2) Approximately 850,000 wmt of washed bauxite is required to produce 300,000 tons of chemical grade alumina. Mine reserves
life does not take into account bauxite resources.
(3) Assuming 64,301 oz (2 tons) of annual gold production. Mine reserves life does not take into account gold resources.
9
Operational and Financial
Highlights
Production and Sales
Ferronickel Nickel Ore (1)
(TNi) (000 wmt)
24,100
24,100
7,270
19,747 20,293 20,888
18,643
16,851 17,211
735
2014 2015 2016 2017E 1Q16 1Q17 2014 2015 2016 2017E 1Q16 1Q17
Gold Bauxite
(kg) (000 wmt)
14,179
291
11,351
10,227 700
9,978
267 290
241
2,907 201 182
2,342 2,210 2,207 2,270 2,128
61 93
479 594 53 47 45
2014 2015 2016 2017E 1Q16 1Q17 2014 2015 2016 2017E 1Q16 1Q17
(1) Does not include production and sales related to mineral ore export which is currently being calculated.
11
Financial Performance (1)
Net Sales (Rp Trillion) Cost of Goods Sold (Rp Trillion)
10.53 10.34
9.42 9.11 8.63 8.25
2014 2015 2016 1Q16 1Q17 2014 2015 2016 1Q16 1Q17
852
793
65 5.29 6.63
195
109 83
(744)
2014 2015 2016 1Q16 1Q17
(1,441)
2014 2015 2016 1Q16 1Q17
12
Financial Performance (2)
Cash & Cash Equivalents (Rp Trillion) Total Asset (Rp Trillion)
2.62
2014 2015 2016 1Q16 1Q17 2014 2015 2016 1Q16 1Q17
12.05
2014 2015 2016 1Q16 1Q17 2014 2015 2016 1Q16 1Q17
13
Selling Prices and Cash Costs
FERRONICKEL GOLD
US$/lb. US$/oz.
7.74 1,694.89
7.67
1,523.23
6.65
1,277.90
6.9 1,265.66
6.32 5.48
1,215.69
4.97
4.57
14
Excellent Operator and Low Cost Producer of Processed
Metals
Excellent operations puts ANTAM as the Second Lowest Cost FY16 Ferronickel Cash Cost
Ferronickel Producer US$ 3.41 /lb.
Royalty &
Others Tax 1%
Ferronickel Producer Cash Cost League
Cash Cost (US$/lb.)
10%
Marketing Fuel
12.00 7% 28%
8.00 Labor
11%
Ore Feed
Services
6.00 11%
23%
Excellent operations has led ANTAM to be one of the lowest cost nickel producers globally
15
Share Price, Nickel Price and Gold Price Movement
As of 2 May 2017
1,600 10
9
1,400
Share & Gold Price
8
1,200
Nickel Price
7
1,000
6
800 5
4
600
3
400
2
200
1
- 0
Price as of Price as of
31 Dec 2016 2 May 2017
ANTM Rp895/share Rp685/share
Gold US$1,152/troy ounce US$1,255/troy ounce
Nickel US$4.52/lb US$4.29/lb
16
Commodities Outlook
Nickel Outlook
Latest Development Nickel Refined End Use 2016
Nickel price chart shows uptrend movement since the Global Ni Consumption
beginning of 1Q17. During 1Q17, Nickel price has 2016 = 2M Tons
Batteries &
increased 1.10% to US$4.51 per lb. from US$4.46 per lb. Others Stainless
6% Steel
at the beginning of 2017 69%
Foundry
In early 2017, the Indonesian Government eased mineral 3%
ore export ban policy under certain conditions. For nickel, Plating
miners must dedicate at least 30% of the smelter capacity 7%
to process low grade ore, defined as below 1.7% Ni.
Alloy Steel
Exports would be allowed for up to five years and would 5% NF Alloy
be restricted to volumes decided by the government. 10%
Source: Wood Mackenzie
The Philippines government has suspended and closed
Outlook of Nickel Price & Refined Nickel Consumption
several nickel mines due to environmental issues, with
estimation of nearly 50% of total Philippines nickel ore
Gold price shows uptrend movement since the beginning Industrial Global Au Demand
of 1Q17. During 1Q17, Gold price has increased 8.86% to 7% 2016 = 4,308 Ton
US$1,249 per oz. from US$1,158 per oz at the beginning Investment
12% Bar & Coin
of 2017 24%
Demand (Tons)
the launch of LM jewellery products. The products are 1200 4350
available in necklaces and bezels with four line of product 1000
series. 4300
800
4250
The launch of jewellery product will compliment a series 600
of ANTAM innovative gold product which previously 400
4200
launched such as gold with batik motif products and
200 4150
customized depository service of BRANKAS (Corporate
BRANKAS, BRANKAS Berzakat and Individual 0 4100
BRANKAS). 2015 2016 2017E
19
Bauxite Outlook
Latest Development Alumunium End Use
Bauxite is the main raw material for aluminium. Long term Global Al Demand
Others 2016 = 58,16 Mil.Ton
aluminium demand is expected to remain solid due to 5% Transport
growth in the transportation and construction sector. 27%
Construction
Consumers 25%
Under the new mineral ore export regulation, bauxite with Durables
an alumunium oxide content of at least 42% may also be 5%
exported in certain amounts. Exports would be allowed for
Machinery
up to five years and would be restricted to volumes 9%
decided by the government. Foil &
Electrical Packing
For industrial application, bauxite ore is processed into 14% 15%
refined alumina products such as Smelter Grade Alumina Source: Statista, Bloomberg
(SGA) and Chemical Grade Alumina (CGA).
Outlook of Aluminium Price & Global Aluminium Demand
Al Demand (MTons)
Al Price (USD/Ton)
Alumina (ICA) is processing its bauxite deposit into CGA
which is used as water purification agents, refractory 1600
59
materials, electronic components and other high tech
products. 1200
58
SGA is the raw material for aluminium plants such as PT 800
Inalum (Persero)s aluminium plant in Kuala Tanjung.
57
ANTAM and INALUM have signed a joint venture 400
agreement on the development of SGA Refinery Plant.
0 56
2015 2016 2017E
Al Price Al Demand
20
Main Projects
Main Projects Under Development
East Halmahera Ferronickel Plant Development Project
Anode Slime & Precious Metal Refinery (PMR) Project
(P3FH)
Anode slime processing Nickel processing to ferronickel
Capacity: Facility is planned to have processing capacity of Capacity: Line 1: 13,500 TNi pa capacity, from Stage I
approximately 6,000 tons of anode slime pa capacity of 27,000 TNi pa
Est. project cost: TBA Est. project cost: Rp3.5 trillion for Line 1 without power plant
Status: MoU signed with PT Freeport Indonesia & PT Smelting Status: Construction
FS review First piling ceremony was held on April 25, 2017
Finalization of related agreements between ANTAM - Est. completion: 2018
PT Freeport Indonesia - PT Smelting
Est. completion: 2019
22
Capex Plan
(in Rp Billion)
2,823.82
7.78
2,555
2,346.68 78.63
154.31
2,013.80
47.14
2,552.14
2,072.59
1,708.64
1,740.24 988.25
17.16
326.58
719.51 310.85
1.41 1.30
483.74 403.78 262.53 260.31
263.91 226.43 251.58
62.64 49.24
2013 2014 2015 2016 2017E 1Q16 1Q17
ANTAMs capex plan reflects prudent financial management amidst commodity price volatility
23
P3FH Model
24
P3FH Power Plant Model
25
Progress of P3FH
Soil Soil
Investigation Resistivity
Activity Investigation
26
Mempawah SGAR Plant Layout
Legend :
27
Mempawah Port Layout
Rencana lokasi
pembangunan Pelabuhan
Internasional Kijing
28
Progress of Mempawah SGAR Project
Drainage
Prepraration Land Leveling in
Works in Mining Plant Site
Site
29
Progress of Anode Slime and PMR Project
Rp Billion
75
72 CD PK BL
70
68
63 64
10 9.73 8.45
2 2.35 3.21
1 0.06 0.16
31
Thank You