Apr 19, 2010

It is time for Antam to sparkle

Nickel price for 3 months delivery in London Metal Exchange rises to US$27,225 per tons, the highest price since May 9 2008.
In comparison to the end of last year, the price so far has gone up 46.96% from US$18,525 per tons, while the average price for the whole year is US$20,829 per tons.
Considering the price, what will happen with fundamental performance of one of Indonesia's largest nickel producer PT Aneka Tambang Tbk (Antam) in the first quarter this year?
If you closely watch the quarterly basis of Antam, especially in the fourth quarter last year, you may surprise. The company posted Rp2.44 trillion of additional sales to Rp8.71 trillion at the end of December 2009 compared to the third quarter's position of Rp6.27 trillion on the back of soaring nickel price, hence net profit steeply rose of Rp311.65 billion during the fourth quarter 2009 to Rp604.31 billion  at the end of December 2009 from the third quarter of merely Rp292.66 billion.
I think the steep increase of Antam's fundamental performance during the fourth quarter 2009 was underpinned by the higher nickel price.
If you take a look Antam's quarterly basis performance last year, from end of March to September, the company posted additional sales of Rp1.77 trillion and Rp1.83 trillion respectively. But, from September to December, the company made a steep jump in sales of Rp2.44 trillion.
Along with the higher nickel price, I believe Antam could made a robust performance during the first quarter 2010 compared to the same period last year. In Q1 2009, Antam posted Rp2.67 trillion of sales, Rp54.71 billion of operating profit, and Rp89.88 billion of net profit or Rp9.44 per share.

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