In a statement sent over the weekend, the company said full-year unaudited sales reached Rp 9.5 trillion (US$880 million) in 2008, down from the Rp 11.8 trillion booked in 2007.
Lower output amid falling demand and prices were the main reasons for the decline in sales, the statement said.
In 2008, Antam produced 17,566 tons of ferronickel, 5 percent less than its 2007 output. It sold 17,026 tons of the alloy, which represented a 3 percent decline from 2007.
The situation was then exacerbated by the lower price, with the average realized ferronickel price in 2008 down around 37 percent from a year earlier.
The lower price and weakening demand had been seen since the last quarter of last year, with sales in the fourth quarter of 2008 declining 38 percent. During the period of October, November and December, unaudited sales fell to Rp 2.11 trillion from Rp 3.38 trillion in 2007.
Reflecting a predicted continued slump in demand, Antam said it expected ferronickel production to only reach 12,000 tons in 2009.
In addition to ferronickel, the company also produces gold and bauxite, which both experienced an increase in sales, partly compensating for the slump in ferronickel.
In 2008, gold production reached 2,833 kilograms, contributing around Rp 2.7 trillion in sales, or about a quarter of Antam's total sales. The domestic market accounted for 71 percent of Antam's revenue from gold.
Due to its significant contribution, Antam is intensifying its efforts to boost gold output amid a slump in global ferronickel prices.
It said it was trying to gain control of the huge Martabe gold mine in North Sumatra from Australia-based Oxiana Limited.
For 2009, the company has allocated Rp 3.04 trillion for capital expenditure, a huge increase from last year's Rp 758 billion.
Lower output amid falling demand and prices were the main reasons for the decline in sales, the statement said.
In 2008, Antam produced 17,566 tons of ferronickel, 5 percent less than its 2007 output. It sold 17,026 tons of the alloy, which represented a 3 percent decline from 2007.
The situation was then exacerbated by the lower price, with the average realized ferronickel price in 2008 down around 37 percent from a year earlier.
The lower price and weakening demand had been seen since the last quarter of last year, with sales in the fourth quarter of 2008 declining 38 percent. During the period of October, November and December, unaudited sales fell to Rp 2.11 trillion from Rp 3.38 trillion in 2007.
Reflecting a predicted continued slump in demand, Antam said it expected ferronickel production to only reach 12,000 tons in 2009.
In addition to ferronickel, the company also produces gold and bauxite, which both experienced an increase in sales, partly compensating for the slump in ferronickel.
In 2008, gold production reached 2,833 kilograms, contributing around Rp 2.7 trillion in sales, or about a quarter of Antam's total sales. The domestic market accounted for 71 percent of Antam's revenue from gold.
Due to its significant contribution, Antam is intensifying its efforts to boost gold output amid a slump in global ferronickel prices.
It said it was trying to gain control of the huge Martabe gold mine in North Sumatra from Australia-based Oxiana Limited.
For 2009, the company has allocated Rp 3.04 trillion for capital expenditure, a huge increase from last year's Rp 758 billion.
Source: The Jakarta Post , Jakarta | Mon, 02/02/2009 4:05 PM | Business
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