ANTAM’s Divestments and Legal Battles: Risks Amid Strong 1H24 Financials

Robust Sales and Profit Growth

PT Aneka Tambang Tbk (ANTAM) has reported a solid financial performance for the first half of 2024, with sales increasing by 7% to Rp23.19 trillion compared to the same period last year. This growth was largely driven by a 42% surge in domestic gold sales, which accounted for 81% of total net sales. The company’s nickel segment contributed 15%, while bauxite and alumina made up 3%.

ANTAM’s net profit for the period reached Rp1.51 trillion, supported by efficient cost management that saw operating expenses decline by 23%. Earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at Rp2.42 trillion, with gross profit and operating profit recorded at Rp2.00 trillion and Rp532 billion respectively. Notably, other income surged by 721% due to effective portfolio management and financial navigation.

Balance Sheet Strength and Dividend Policy

The company’s financial position strengthened with total assets rising 8% to Rp39.18 trillion and equity increasing 25% to Rp29.69 trillion, while liabilities fell 25% to Rp9.49 trillion. Cash and cash equivalents grew 33% to Rp8.75 trillion, reflecting solid liquidity and investment capacity.

ANTAM declared cash dividends for the years ended 2023 and 2024, distributing Rp3.08 trillion and Rp3.65 trillion respectively, equivalent to 100% of net income for those years. However, no dividends are proposed for the period ending June 30, 2025, signaling a cautious approach amid ongoing investments and market conditions.

Strategic Divestments and Operational Updates

In a strategic move, ANTAM completed the divestment of a 49% stake in PT Sorikmas Mining (SDA) to HongKong Ningbo Contemporary Brunp Lygend Co., Limited (HKCBL) in December 2023, while retaining control of SDA. This divestment aligns with ANTAM’s broader electric vehicle battery ecosystem development plans, with SDA supplying nickel ore to a joint venture smelter.

Conversely, the company divested 60% of its interest in PT Feni Halmahera Timur (FHT) to HKCBL, resulting in loss of control and reclassification of FHT as an associate. FHT is a key project involving the development and operation of a nickel smelter using Rotary Kiln Electric Furnace technology in East Halmahera.

Regulatory Compliance and Legal Landscape

ANTAM operates under Indonesian financial accounting standards and complies with evolving mining regulations, including recent government decrees on mining licenses, royalties, and environmental obligations. The company holds multiple mining licenses and has ongoing exploration and development projects across Indonesia.

Several legal cases remain active, including disputes related to refinery contracts and gold bar deliveries. The company is actively defending its interests and has obtained favorable rulings in some cases, while others remain in litigation. Management continues to monitor these developments closely.

Governance and Leadership

ANTAM updated its Board of Commissioners and Directors in June 2025, reflecting ongoing governance enhancements. The company also maintains robust employee benefit programs and manages financial risks related to currency, interest rates, credit, and liquidity prudently.