Corporate Presentation

Transcription

1 Corporate Presentation PT ANTAM (Persero) Tbk CIMB Conference - Bali May 2017

2 Disclaimer This presentation contains "forward-looking" statements that are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future and are not a guarantee of future performance. The future events referred to in these statements involve known and unknown risks, uncertainties and other factors, some of which are beyond the Company's control, which may cause the Company's actual results, performance or achievements, or general industry results to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise. The Company and the Agents, and their affiliates, advisers and representatives do not make any representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved, and such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or standard scenario. Accordingly, you should not place undue reliance on any forward-looking statements. 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 Information s 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

3 Table of contents Quick Updates Company Overview Operational and Financial Highlights Commodities Outlook Main Projects Establishment of Mining Industry Holding SOE 2

4 Quick Updates of ANTAM 1 Relaxation of Indonesia s Mineral Export Ban: ANTAM Secured 2.72 million wmt of nickel ore and 850,000 wmt of bauxite ore export permits 2 First piling ceremony of East Halmahera Ferronickel Plant Development Project Ferronickel Production and Sales Reached All Time High 4 5 ANTAM s Gold is Available for Purchase in 102 Post Offices Throughout Indonesia Strategic alliance agreement with Newcrest to gold and copper exploration in West Java, East Java, South Sumatera, Nusa Tenggara, North Sulawesi, Halmahera and Mollucas Islands 6 Commissioning of Integrated Operations of Pomalaa Ferronickel Plant Expansion Project 7 Innovation in Gold Business: Gold with Batik Motifs, BRANKAS, Jewelry Products 8 Creation of Mining Industry Holding SOE 3

5 Company Overview

6 ANTAM at A Glance Company Description ANTAM is one of the largest listed diversified metals and mining companies in SEA with vertically integrated operations The Company is export oriented with main markets in South Korea, China and India ANTAM s main commodities are nickel ore, ferronickel, gold, silver, bauxite, alumina, coal and precious metals processing services ANTAM s exploration and operation properties are spread throughout Indonesia ANTAM is a state-owned enterprise which is 65% owned by the Government of Indonesia. The Company is listed on the IDX and ASX ANTAM undertakes all stages of the mining and processing process, including exploration, mining, smelting, refining and marketing in relation to nickel ore, ferronickel, gold, silver, alumina, other precious metals and coal ANTAM is completing its key processing development projects, as follows: Pomalaa Ferronickel Plant Expansion Project East Halmahera Ferronickel Plant Development Project Mempawah Smelter Grade Alumina Refinery Project Anode Slime & Precious Metal Refinery Project 1Q17 Sales Breakdown Bauxite, Alumina, Coal & Nickel Ore 4% 1Q17 Sales Destination Domestic 51% Ferronickel 22% Gold, Silver & Precious Metal Refinery Service 74% Export 49% 5

7 Upstream Downstream Finished Product Integrated Mining Company with Diversified Portfolio of Processed Metals Upstream and Downstream Operations Nickel Gold Bauxite Pomalaa Nickel Mine Buli Nickel Mine Pongkor and Cibaliung Gold Mines Tayan Bauxite Mine Pomalaa Ferronickel Plant Pomalaa Ferronickel Plant Expansion Project East Halmahera Ferronickel Plant Development Project Precious Metals Processing and Refinery Anode Slime & PMR Project Tayan Chemical Grade Alumina Plant Mempawah Smelter Grade Alumina Refinery Project Ferronickel Gold Alumina ANTAM is uniquely positioned as a vertically integrated mining company with diversified products 6

8 ANTAM s Finished Products PRECIOUS METAL Minted bar & Batik motif Dinar & Dirham coins Casting based products Stamping based products Industrial products Gold articles Jewelry CHEMICAL GRADE ALUMINA FERRONICKEL Specialty & Hydroxide Alumina Ferronickel Shot 7

9 Assets in Operation Sarolangun Coal Mine Learning & Development Geomin Exploration Unit Tayan Bauxite Mine Tayan Chemical Grade Alumina Plant PT Nusa Halmahera Minerals* Cibaliung Gold Mine Pongkor Gold Mine Precious Metal Processing and Refinery Pomalaa Nickel Mine Pomalaa Ferronickel Plant Buli Nickel Mine *ANTAM owns 25% of PT Nusa Halmahera Minerals with the remaining owned by Newcrest Mining Ltd. 8

10 Reserves and Resources Vast Nickel Ore Reserves and Resources (1) (million wmt) Large Bauxite Ore Reserves and Resources (2) (million wmt) Substantial Gold Ore Reserves and Resources (3) (million dmt) 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 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

11 Operational and Financial Highlights

12 Production and Sales Ferronickel Nickel Ore (1) (TNi) 19,747 18,643 16,851 17,211 20,29320,888 24,100 24,100 ( 000 wmt) 7, ,357 2,625 2, ,654 1,635 1, , E 1Q16 1Q E 1Q16 1Q17 Production Sales Production Sales Gold (kg) 14,179 Bauxite ( 000 wmt) 9,978 10,227 11, ,342 2,210 2,207 2,270 2, , E 1Q16 1Q E 1Q16 1Q17 Production Sales Production Sales (1) Does not include production and sales related to mineral ore export which is currently being calculated. 11

13 Financial Performance (1) Net Sales (Rp Trillion) Cost of Goods Sold (Rp Trillion) Q16 1Q Q16 1Q17 Gross Profit (Rp Billion) Net Profit (Loss) (Rp Billion) Q16 1Q17 (744) (1,441) Q16 1Q17 12

14 Financial Performance (2) Cash & Cash Equivalents (Rp Trillion) Total Asset (Rp Trillion) Q16 1Q Q16 1Q17 Total Liabilities (Rp Trillion) Total Equity (Rp Trillion) Q16 1Q Q16 1Q17 13

15 Selling Prices and Cash Costs FERRONICKEL GOLD US$/lb. US$/oz , , , , , ASP Cash Cost ASP Cash Cost 14

16 PT Aneka - Pomalaa Cash Cost (US$/lb.) Excellent Operator and Low Cost Producer of Processed Metals Excellent operations puts ANTAM as the Second Lowest Cost Ferronickel Producer Ferronickel Producer Cash Cost League FY16 Ferronickel Cash Cost US$ 3.41 /lb. Marketing 7% Others 10% Royalty & Tax 1% Fuel 28% Plant Cons. 9% Ferronickel Cash Cost Labor 11% Services 11% Ore Feed 23% FY16 Gold Cash Cost US$ /Oz. Others 8% Royalty & Tax 5% Labor 17% Depreciation 38% Gold Cash Cost Material 20% Source : Wood Mackenzie Services 20% Excellent operations has led ANTAM to be one of the lowest cost nickel producers globally 15

17 Share & Gold Price Nickel Price Share Price, Nickel Price and Gold Price Movement As of 2 May , ,400 1,200 1, ANTAM (Rp/Share) Gold (US$/Troy Ounce) Nickel (US$/lb) Price as of 31 Dec 2016 Price as of 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

18 Commodities Outlook

19 Nickel Price (US$/lb) Nickel Cons. (MTons) Nickel Outlook Latest Development Nickel price chart shows uptrend movement since the beginning of 1Q17. During 1Q17, Nickel price has increased 1.10% to US$4.51 per lb. from US$4.46 per lb. at the beginning of 2017 In early 2017, the Indonesian Government eased mineral ore export ban policy under certain conditions. For nickel, miners must dedicate at least 30% of the smelter capacity to process low grade ore, defined as below 1.7% Ni. Exports would be allowed for up to five years and would be restricted to volumes decided by the government. Nickel Refined End Use 2016 Batteries & Others 6% Foundry 3% Plating 7% Alloy Steel 5% NF Alloy 10% Global Ni Consumption 2016 = 2M Tons Stainless Steel 69% The Philippines government has suspended and closed several nickel mines due to environmental issues, with estimation of nearly 50% of total Philippines nickel ore production lost. Source: Wood Mackenzie Outlook of Nickel Price & Refined Nickel Consumption Higher nickel demand is expected due to limited availability, translating into higher premium and lower discount. The rapid expansion of NPI & Stainless Steel Chinese capacities activities and the expectation of higher spending for US infrastructure also helps to contribute to higher nickel demand. Domestic nickel ore demand in Indonesia starts to grow inline with the operations of domestic private nickel smelters E Nickel Price Nickel Consumption Source: Bloomberg & Wood Mackenzie 18

20 Gold Price (US$/oz) Demand (Tons) Gold Outlook Latest Development Gold End Use 2016 Gold price shows uptrend movement since the beginning of 1Q17. During 1Q17, Gold price has increased 8.86% to US$1,249 per oz. from US$1,158 per oz at the beginning of 2017 Investment 12% Industrial 7% Global Au Demand 2016 = 4,308 Ton Bar & Coin 24% Higher gold price is largely due to limited gold supply The higher US interest rate will also impact gold price. ANTAM has signed partnership agreement with PT Pos Indonesia (Persero) to boost domestic gold sales. Under the agreement, 109 post offices will serve as ANTAM s gold distribution channels, covering Java, Madura, Bali, West Nusa Tenggara and East Nusa Tenggara area. Jewellery 48% Source: World Gold Council Outlook of Gold Price & Global Gold Demand Central Bank Deposit 9% ANTAM continues to innovate in its gold business through the launch of LM jewellery products. The products are available in necklaces and bezels with four line of product series. The launch of jewellery product will compliment a series of ANTAM innovative gold product which previously launched such as gold with batik motif products and customized depository service of BRANKAS (Corporate BRANKAS, BRANKAS Berzakat and Individual BRANKAS) E Gold Price Gold Demand Source: Wood Mackenzie, World Gold Council 19

21 Al Price (USD/Ton) Al Demand (MTons) Bauxite Outlook Latest Development Bauxite is the main raw material for aluminium. Long term aluminium demand is expected to remain solid due to growth in the transportation and construction sector. Under the new mineral ore export regulation, bauxite with an alumunium oxide content of at least 42% may also be exported in certain amounts. Exports would be allowed for up to five years and would be restricted to volumes decided by the government. For industrial application, bauxite ore is processed into refined alumina products such as Smelter Grade Alumina (SGA) and Chemical Grade Alumina (CGA). Since 2015, ANTAM through PT Indonesia Chemical Alumina (ICA) is processing its bauxite deposit into CGA which is used as water purification agents, refractory materials, electronic components and other high tech products. SGA is the raw material for aluminium plants such as PT Inalum (Persero) s aluminium plant in Kuala Tanjung. ANTAM and INALUM have signed a joint venture agreement on the development of SGA Refinery Plant. Alumunium End Use Consumers Durables 5% Machinery 9% Electrical 14% Outlook of Aluminium Price & Global Aluminium Demand Others 5% Source: Statista, Bloomberg Transport 27% E Global Al Demand 2016 = 58,16 Mil.Ton Construction 25% Foil & Packing 15% Al Price Al Demand Source: Bloomberg & Wood Mackenzie 20

22 Main Projects

23 Main Projects Under Development Anode Slime & Precious Metal Refinery (PMR) Project Anode slime processing Capacity: Facility is planned to have processing capacity of approximately 6,000 tons of anode slime pa Est. project cost: TBA Status: MoU signed with PT Freeport Indonesia & PT Smelting FS review Finalization of related agreements between ANTAM - PT Freeport Indonesia - PT Smelting Est. completion: 2019 East Halmahera Ferronickel Plant Development Project (P3FH) Nickel processing to ferronickel Capacity: Line 1: 13,500 TNi pa capacity, from Stage I capacity of 27,000 TNi pa Est. project cost: Rp3.5 trillion for Line 1 without power plant Status: Construction First piling ceremony was held on April 25, 2017 Est. completion: 2018 Mempawah Smelter Grade Alumina Refinery (SGAR) Project Bauxite processing to smelter grade alumina (SGA) Est. project cost: TBA Capacity: 1 million tons of SGA pa (Stage 1) Status: JV company was formed with PT Inalum (Persero) Signed MoU with PT Pelindo II (Persero) on the development of Mempawah port. Est. completion: 2019 Pomalaa Ferronickel Plant Expansion Project (P3FP) To increase ferronickel production capacity from 18,000-20,000 TNi pa to 27,000-30,000 TNi pa Est. project cost: US$600 million Status: Completion of the eight packages was completed in 2016 and commercial operations to occur in 2017 Est. completion:

24 Capex Plan (in Rp Billion) 2, , , , , , , , E 1Q16 1Q17 Routine Development Deferred Expenses ANTAM s capex plan reflects prudent financial management amidst commodity price volatility 23

25 P3FH Model 24

26 P3FH Power Plant Model 25

27 Progress of P3FH 1 st Piling Ceremony held on April 25, 2017 Soil Investigation Activity Soil Resistivity Investigation 26

28 Mempawah SGAR Plant Layout Legend : 1. Bauxite & Coal Storage 2. Coal Power Plant 3. Digester 4. Precipitation 5. Alumina Storage 6. ATH Storage 7. Calciner 8. Office 27

29 Mempawah Port Layout Rencana lokasi pembangunan Pelabuhan Internasional Kijing N 28

30 Progress of Mempawah SGAR Project Land Leveling in Mining Area Land Clearing in Mining Area Drainage Prepraration Works in Mining Site Land Leveling in Plant Site 29

31 Progress of Anode Slime and PMR Project MoU Signing with PT Smelting & PT Freeport Indonesia 30

32 Corporate Social Responsibility (CSR) Programs Rp Billion Distribution of CSR Funds CD PK BL Q16 1Q17 ANTAM s CSR Program is comprised of 4 programs: Community Development (CD), Partnership Program (PK), Environment Stewardship Program (BL) and Environmental Management Program (ENV) 31

33 Thank You