PT ANTAM (Persero) Tbk · IDX:ANTM
PT ANTAM (Persero) Tbk — PT Antam — Citi Indonesia Investor Conference 2008
21 slides from PT ANTAM (Persero) Tbk's conference presentation, Aug 25, 2008
Slide 1: Reducing Costs, Moving Downstream and Maintaining Diversification
Reducing Costs, Moving Downstream and Maintaining Diversification PT Antam Tbk Citi Indonesia Investor Conference An Overview of Performance and Outlook Jakarta, Jakarta 25 August 2008
Slide 2: Disclaimer
Disclaimer • We are not in a position to advise you, we are not advising you, and the contents of this presentation must not be construed as any advice to you, on (a) whether to purchase any of our securities or, (b) if you hold an investment in our securities, the value of your investment or how or
Slide 3: Who We Are
Who We Are A leading Indonesian mining company with vertically integrated operations; Antam’s Sales Mix* 1% 16% Vast, high quality reserves of nickel, gold and bauxite; 27% More than 4 decades of successful, profitable operation; 56% Development of reserves either solely or via partnerships; Ferroni
Slide 4: Operation and Development Map
Operation and Development Map SGA Project CGA Tayan Project Mornopo (Bauxite) (Bauxite) (Nickel Ore) Gee Geomin (Nickel Ore) (Exploration Unit) Pomalaa (Ferronickel and Tanjung Buli Kijang Nickel Ore) (Nickel Ore) (Bauxite) FeNi IV Project Logam Mulia (Nickel) (Precious Metals Refinery and Hydromet
Slide 5: Sales, Profit and EBITDA
Sales, Profit and EBITDA Sales and Profit EBITDA 2007 Income Statement Summary 9,000 500% 12,008 EBITDA (LHS) 450% 8,000 2006 2007 Chg. (%) Growth (RHS) Sales Operating Profit Net Profit 400% 7,000 350% Sales 5,629 12,008 113 6,000 Gross profit 2,741 7,213 163 IDR billion 300% IDR billion 5,000 6,79
Slide 6: Quarterly Income
Quarterly Income (Rp Billion) 3000 2386 2500 2092 2000 1425 1500 937 1000 600 1073 675 566 563 402 500 218 222 148 92 147 196 131 0 62 1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 Sales Operating Profit Net Profit *Unaudited results August 2008 – Page 5
Slide 7: Our Strategy
Our Strategy Cost reduction Moving downstream M i t i i diversification Maintaining di ifi ti August 2008 – Page 6
Slide 8: Energy Conversion Initiatives
Energy Conversion Initiatives Mornopo, Buli, Gee Antam’s Ore Feed Source Kalimantan Lake Poso Source of Coal Hydro Power Pomalaa Sengkang g g Antam’s Feni Gas Source Operations Energy Conversion Alternatives: ¾ Hydro: H d Utilizes water reserves of Poso Lake and Tamboli river IPP (Power Plant, T
Slide 9: Vast and Growing Resources and Reserves
Vast and Growing Resources and Reserves Antam’s Resources and Reserves Total Reserves and Resources Proven & Probable Reserves (Ore Quantity ‘000wmt) (Ore Quantity ‘000wmt) Commodity 2006 2007 Change (%) 2006 2007 Change (%) Saprolite Nickel 179,850 180,900 1 63,900 55,100 (14) Limonite Nickel 185,1
Slide 10: Sources of Future Growth
Sources of Future Growth 1 - Indonesia Chemical Alumina (ICAICA)) – (Antam 49% 49%, with an option to increase ownership) ● 300 300,,000 tonnes tonnes per annum of CGA ● Location Location:: Tayan, West Kalimantan ● +US +US$ $450 million ● ICA established in February 2007 ● To maximize value of large
Slide 11: Sources of Future Growth
Sources of Future Growth 3– High content NCPI/ NCPI/Stainless Stainless Steel with Tsingshan (Antam 60%) 60%) ● First phase to produce high content NCPI using electric arc furnace furnace.. Second phase to produce stainless steel. steel. ● JVA signed in October 2007 ● Location Location:: Obi, North
Slide 12: Sources of Future Growth
Sources of Future Growth 6–SGA Mempawah with Hangzhou (Antam 55%) ● 1,000, 000,000 tpa of Smelter Grade Alumina ● Location Location:: West Kalimantan ● Current progress progress:: JVA, JVA Feasibility studies 7– SGA Munggu Pasir with Rusal (Antam 49%) ● 1,200, 200,000 tpa of Smelter Grade Alumina ●
Slide 13: Industry-Beating Margins and Returns
Industry--Beating Margins and Returns Industry Selected Ratios – Antam vs. Industry Top 40 Global Indonesian Mining Antam Companies Companies Key Ratios 2005 2006 2005 2006 2005 2006 2007 EBITDA margin 37% 44% 43% 41% 41% 49% 64% Net Profit margin 23% 27% 23% 23% 26% 28% 43% Return on Equity* 26% 33
Slide 14: Why Consider Investing?
Why Consider Investing? Lower ferronickel cash costs in future following conversion to less expensive fuel; Vast reserves of nickel and bauxite; Exciting Chemical Grade Alumina project to come on stream in 2011/2012; Solid financial position to make investments August 2008 – Page 13
Slide 15: Thank You
Thank You Visit our website: www.antam.com August 2008 – Page 14
Slide 16: Contents
Contents A Changing Industry Strategy and Future Prospect Antam: Creating Maximum Shareholders’ Value August 2008 – Page 15
Slide 17: Decreasing nickel price as stocks increase
Decreasing nickel price as stocks increase The continued weakness of stainless steel demand in Asia coupled with growing concerns of downturn in the global economy helped to sustain low nickel prices Falling nickel prices, rising raw materials and energy prices, and weak demand from the stainless st
Slide 18: Nickel cash cost continues to increase
Nickel cash cost continues to increase Escalating energy prices as well as consumable and labour costs boosts production costs In 2003, the cash cost of producing nickel amounted to $2.36/lb while in 2007 the nickel cash cost is estimated to reach $4 $4.15/lb 15/lb Source: Brookhunt August 2008 – Pa
Slide 19: Easing gold price
Easing gold price Fear from the global credit crisis has decreased The weak US dollar and the high oil price provide support for gold price Physical gold demand has decreased. The World Gold Council reports that first quarter 2008 jewelry demand was the lowest in 15 years. Gold Price Source: ANZ Aug
Slide 20: Contents
Contents A Changing Industry Strategy and Future Prospect Antam: Creating Maximum Shareholders’ Value August 2008 – Page 19
Slide 21: Contents
Contents A Changing Industry Strategy and Future Prospect Antam: Creating Maximum Shareholders’ Value August 2008 – Page 20