MIRA INFORM REPORT

 

 

Report No. :

302652

Report Date :

20.01.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. ANEKA TAMBANG (PERSERO) TBK

 

 

Registered Office :

Gedung Aneka Tambang Jalan Let. Jend. T.B. Simatupang No. 1, Lingkar Selatan, Tanjung Barat Jakarta 12530

 

 

Country :

Indonesia

 

 

Financials (as on) :

30.09.2014

 

 

Date of Incorporation :

15.09.1997

 

 

Com. Reg. No.:

AHU-AH.01.10-29278

 

 

Legal Form :

Public Listed Company

 

 

Line of Business :

·         Mineral Mining and Processing

·         Investment Holding

 

 

No. of Employees :

2,720 Persons

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

--

 

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Indonesia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDONESIA - ECONOMIC OVERVIEW

 

Indonesia, a vast polyglot nation, has grown strongly since 2010. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25% and historically low rates of inflation. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. The government also faces the challenges of quelling labor unrest and reducing fuel subsidies in the face of high oil prices.

 

Source : CIA

 

BASIC SEARCH

 

Name of Company :

P.T. ANEKA TAMBANG (Persero) Tbk

 

A d d r e s s :

Head Office

Gedung Aneka Tambang

Jalan Let. Jend. T.B. Simatupang No. 1

Lingkar Selatan, Tanjung Barat

Jakarta 12530

Indonesia

Phones                         - (021) 7805119 (Hunting)

Fax                               - (021) 7812822

E-mail               - corsec@antam.com

Website            - http://www.antam.com

Building Area    - 18 storey

Office Space    - 2,850 sq. meters

Region              - Commercial

Status               - Owned

 

Factories

  a. Gold Processing & Purification Unit

      Jalan Raya Bekasi Km. 18

      Pulogadung

      Jakarta 13010

      Phones       - (021) 4757108, 4892108, 4895380

      Fax             - (021) 4750665, 4890419

      E-mail         - infolm@antam.com

  b. Geology Unit

      Jalan Pemuda No. 1

      Pulogadung

      Jakarta 13250

      Indonesia

      Phone         - (021) 4755380 (hunting)

      Fax             - (021) 7459860

  c. Iron Sand Mine

      Jalan Penyu

      Cilacap 53211

      Central Java

      Indonesia

      Phones       - (0282) 31883, 31884

      Fax             - (0282) 31881

   d.                                                Gold Mine

      Pongkor, Leuwiliang

      Bogor 16650

      West Java

      Indonesia

      Phones       - (0251) 681542 (hunting)

      Fax             - (0251) 681543

   e.                                                Baoxite Mine

      Kijang

      Tanjung Pinang 29151

      Riau Province

      Indonesia

      Phones       - (0771) 21177, 61520

      Fax             - (0771) 61921

   f.                                                 Nickel Mine and Ferronickel Plant

      Pomalaa Site

      Kolaka 93652

      South East Sulawesi

      Indonesia

      Phones       - (0405) 21171 (hunting)

      Fax             - (0405) 21833

   g.                                                Nickel Mine

      Gebe Island

      Halmahera Tengah 97727

      North Maluku

      Indonesia

      Phones       - (021) 7891234 Ext. 3704

      Fax             - (021) 7804589

 

Branch

New Aoyama Building, East 16101-1

Minami Ayome, 1 Chome

Minato-ku

Tokyo 107

Japan

Phones             - (03) 3423 8031 (hunting)

Fax                   - (03) 3423 8033

 

Date of Incorporation :

a. 05 July 1968 as P.N. ANEKA TAMBANG

b. 30 December 1974 as P.T. ANEKA TAMBANG

c. 15 September 1997 as P.T.ANEKA  TAMBANG Tbk (Persero)

 

Legal Form :

P.T. Tbk.(Perseroan Terbatas Terbuka) or Public Listed Company

 

Company Reg. No. :

The Ministry of Law and Human Rights

  a.  No. AHU-40521.AH.01.02.TH.2008

       Dated 11 July 2008

  b.  No. AHU-39860.AH.01.02.TH.2010

      Dated 12 August 2010

  c.  No. AHU-AH.01.10-25834

      Dated 13 October 2010

  c.  No. AHU-AH.01.10-29278

      Dated 17 July 2013

 

Company Status :

State Owned Mining Company

 

Permit by the Government Department :

  a.  The Department of Mining and Energy

      - No. 680/DDP/1968

        Dated 29 November 1968

      - No. 1621/03/M.DJP/1992

        Dated 7 May 1992

 

  b.   The Capital Investment Coordinating Board

       - No. 1271/Sekr/SP.PMDN/1971

         Dated 31 August 1971

       - No. 16/II/PMDN/1987

         Dated 14 February 1987

       - No. 42/II/PMDN/1992

         Dated 31 March 1992

       - No. 81/II/PMDN/1992

         Dated 24 June 1992

 

Related/Affiliated Company :

A member Company of the ANEKA TAMBANG Group (see attachment)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           - Rp 3,800,000,000,000

Issued Capital                                 - Rp    953,845,975,000

Paid up Capital                               - Rp    953,845,975,000

 

Shareholders

a. The Government of The Republic of Indonesia  - Rp. 620,000,000,000.- (65%)

b. The publics                                                                   - Rp. 333,845,975,000.- (35%)

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

a. Mineral Mining and Processing

b. Investment Holding

 

Production Capacity :

a. Nickel Ores                                  - 3,650,000 tons p.a.

b. Ferro Nickel                                 -      24,000 tons p.a.

c. Iron Sands                                  -    425,000 tons p.a.

d. Bauxites                                     -    800,000 tons p.a.

e. Gold                                           -             60 tons p.a.

f.  Silvers                                        - 120 tons p.a.

g. Electric Power Plant                    - 110 MW

 

Total Investment :

a.   Equity Capital            - Rp.    554.5 billion

b.   Loan Capital               - Rp. 1,015.7 billion

c.   Total Investment         - Rp. 1,570.2 billion

 

Expansion Unit (Electric Power Plant) :

a.   Equity Capital            - Rp.   60.5 billion

b.   Loan Capital               - Rp. 334.5 billion

c.   Total Investment         - Rp. 395.0 billion

 

Started Operation :

July 1968

 

Brand Name :

ANTAM

 

Technical Assistance :

None

 

Number of Employee :

2,720 persons

 

Marketing Area :

Domestic (Local)           - 80 %

Export (Overseas)         - 20%

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. Freeport Indonesia

b. P.T. Prima Lirang Mining

c. P.T. Aneka Metal Mulia

d. P.T. Chodra Kurnia Agribindo Mining

e. P.T. Horas Nauli

f.  P.T. Logam Mulia

g. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

  a. P.T. Bank MANDIRI Tbk

      Plaza Mandiri

      Jl. Jend. Gatot Subroto Kav.36-38

      Jakarta Pusat

      Indonesia

b.  P.T. Bank NEGARA INDONESIA Tbk

      Wisma BNI 46

      Jalan Jenderal Sudirman Kav.1

      Jakarta Pusat

      Indonesia

  c. P.T. Bank RAKYAT INDONESIA Tbk.

      BRI 2 Tower

      Jalan Jenderal Sudirman Kav. 44-46

      Jakarta Selatan

      Indonesia

  d. CITIBANK N.A.

      Citibank Landmark Building

      Jalan Jenderal Sudirman Kav. 1

      Jakarta Selatan

      Indonesia

 

Auditor :

Purwantono Suherman & Surya (A member of Ernst & Young Global Ltd.)

 

Litigation :

The Subject has involved in dispute with other parties (see litigation matter – attachment 2)

 

 

FINANCIAL FIGURE

 

Annual Net Sales :

2010 – Rp.   8,744.3 billion

2011 – Rp. 10,346.4 billion

2012 – Rp. 10,449.9 billion

2013 – Rp. 11,298.3 billion

2014 – Rp.   5,812.5 billion

 

Net Profit (Loss) :

2010 –  Rp. 1,686.9 billion

2011 –  Rp. 1,924.7 billion

2012 –  Rp. 2,989.0 billion

2013 –  Rp.    410.1 billion

2014 – (Rp.   563.8 billion)

 

Payment Manner :

Sometime delay

 

Financial Comments :

Unhealthy

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Ir. Tato Miraza

Directors                                         - a. Mr. Hendra Santika

                                                        b. Mr. Djaja Marsukun Tambunan

                                                        c. Mr. Tedy Badrujaman

                                                        d. Mr. Hari Widjajanto

                                                        e. Mr. I Made Surata

 

Board of Commissioners :

President Commissioner                   - Mr. Raden Sukhyar

Commissioners                               - a. Mr. Zaelani

                                                        b. Mr. Velix Vernando Wanggai

                                                        c. Mr. Robert Simanjuntak

                                                        d. Mr. Hikmahanto Juwana

                                                        e. Mr. Laode Masihu Kamaluddin

 

Signatories :

President Director (Mr. Ir. Tato Miraza)  or one of the Directors (Mr. Hendra Santika, Mr. Djaja Marsukun Tambunan, Mr. Tedy Badrujaman, Mr. Hari Widjajanto or Mr. I Made Surata) which must be approved by Board of Commissioners.

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

Initially name P.N. ANEKA TAMBANG, the company was established in July 1968 with a legal status of state-owned (P.N.). It was a merger of 7 state-owned companies namely BPU PERTAMBANGAN, P.N. TAMBANG EMAS CIKOTOK, P.N. PERTAMBANGAN BAUKSIT KIJANG, P.N. LOGAM MULIA, P.T. PERTAMBANGAN NIKEL INDONESIA POMALAA, PROYEK PERTAMBANGAN INTAN KALIMANTAN SELATAN and PROYEK EMAS LOGAM PEKANBARU. In December 1974 its status was converted into a P.T. (Perseroan Terbatas) or Limited Liability and named P.T. ANEKA TAMBANG (P.T. ANTAM). On 15 September 1997, some 35% of its shares are sold to public through the Jakarta Stock Exchange (BEJ) and Surabaya Stock Exchange (BES). By the same time the word Tbk., (Terbuka) was added behind the name to comply with the new Law on publicly listed company to become P.T. ANEKA TEMBANG, Tbk., abbreviated P.T. ANTAM, Tbk.

 

On 9 August 1999 P.T. ANTAM Tbk., listed its shares on the Australia Stock Exchange. On 15 September 2002, the authorized capital was raised to Rp. 1,600,000,000,000 issued and paid up capital to Rp. 953,845,975,000. With this development the composition of its shareholder bas been changed to become the Government of the Republic of Indonesia (65%) and Public (35%). P.T. ANTAM Tbk., is a State-Owned Business Enterprise (BUMN) which technically and operationally comes under the jurisdiction of the Department of Mines and Energy. The latest amendment of Notarial Deed was made by Fathiah Helmi, SH., and it was approved by the Ministry of Law and Human Right in its Decision Letter No. AHU-AH.01.10-29278 dated July 17, 2013.

 

P.T. ANTAM Tbk. has been operating since 1968 by taking over the whole activities of merged state-owned companies engaged in nickel, bauxite, iron-sand, gold and silver mining and processing. The company has a nickel mining concession in Pomalaa, South Sulawesi and Pulau Gebe, Maluku, bauxite in Kijang, Bintan, Island, Riau, iron-sand in Cilacap, Central Java and gold in Pongkor, West Java. The location is equipped with processing units. P.T. ANTAM Tbk., also has precious metal processing and purification plant in Jakarta, which also can be used by other companies. P.T. ANTAM Tbk, is now planning to enlarge its mining and plant in Pomala to increase production capacity of 13,000 tons ferronickel per year. It’s also to build a steam and gas electric power station (PLTGU) of 110 MW capacities to fulfill the expansion plant's requirement. The development of PLTGU is in cooperation with P.T. PERUSAHAAN LISTRIK NEGARA (P.T. PLN) under the BOT system (build, operating and transfer) within 20 years period. This expansion project is known as Ferronickel III project with a total investment of US$ 220 million (or some Rp. 1,365.2 billion namely for increasing ferronickel capacity of Rp. 970.2 billion and for PLTGU of Rp. 395.0 billion). Actually, that fund is directly needed for investment of US$ 168.0 million, but including interest rate along the construction, etc., the total becomes US$ 220.0 million. The fund is coming from company's capital of US$ 66.0 million, loans from local bank consortium of US$ 34.0 million and from IKB Deutsche Industriebank, Germany, of US$ 120.0 million. The loan from Germany with interest of 1.25% above London Interbank Offered Rate (LIBOR) plus premium country risk of 15% for 13 years period including grace and risk period.

 

The development of Ferronickel III project is tendered and won by contractor TESSAG INDUSTRIE ANLAGEN GmbH, of Germany, and it is also appointed as financial arranger. The plan has yet realize to date and the plan of consortium banks’ loans of German was canceled on account of the appreciation of Euro has been over rate limit agreed by P.T. ANTAM Tbk., with RWE SOLUTIONS and MAN B&W as project contractors.

 

P.T. ANTAM Tbk., owns 72 units of mining concession, 39 units in Java, 11 units in Kalimantan, 7 units in Maluku, 6 units in Sulawesi, 5 units in Sumatra, 3 units in Nusa Tenggara, and 1 unit in Irian Jaya. And yet, other feasibility study of mining concession is now being prepared in cooperation with many foreign and local mining investors. It is planned to set up a joint venture with the above investors. P.T. ANTAM Tbk., also produce precious metal goods, such as, silver wire, metal, nitrate silver, gold plate, silver plat and amalgam alloy. It also provides mining geology services. Bauxite, nickel ore and Ferro nickel are exported to Japan, South Korea, Taiwan, South Africa and European countries, gold and iron-sand for local consumption.   Now, P.T. ANTAM Tbk., has four main business units including the Southeast Sulawesi Nickel Mining Business Unit, North Maluku Nickel Mining Business Unit, Pongkor Gold Mining Business Unit and Logam Mulia Precious Metals Processing and Refinery Business Unit.

 

Nickel

 

ANTAM's nickel business segment consists of ferronickel and nickel ore produced from the company's nickel mines in Southeast Sulawesi, North Maluku, and ferronickel plants in Southeast Sulawesi. In Southeast Sulawesi, the nickel mines are located in Pomalaa and Tapunopaka, meanwhile in North Maluku the mine is situated in Buli. Also in Pomalaa, ANTAM runs three ferronickel processing smelters. The Company exports nickel ore with nickel content ranges from around 1.0% to above 2.0%. While the ferronickel produced by ANTAM has high or low carbon content, depending on the consumer demand.

 

In line with the implementation of the Government’s ore export ban policy beginning of January 12, 2014, ANTAM’s nickel ore production in the first nine months of 2014 (9M14) abated to 762,742 wmt, or 91% lower than 9M13.  The bulk of the nickel ore production was used toward the smelting of ferronickel.  Due to the ban, ANTAM’s 9M14 sales volume of nickel ore showed a 97% decline to 215,400 wmt compared to 9M13.

 

Ferronickel Processing

 

There are three ferronickel plants owned by ANTAM: the FeNi I, FeNi II and FeNi III. The total capacity of the three plants is 26,000 TNi with an assumption of peak load of 42MW and using nickel ore with 2.38% content as feed. Nevertheless, for reserves conservation, the Company usually uses ore feed with content range between 1.8% and 2.0% and with peak load around 38 MW-40 MW, so the approximated total production of the three ferronickel plants is 18,000 – 20,000 TNi.

 

The production volume of ferronickel in 9M14 showed an 18% decline to 11,710 tons of nickel in ferronickel (TNi), in line with the implementation of the ore blending optimization which occurred in the beginning of 2014.  During this period, ANTAM used the ore feed from its mine in Pakal Island which called for some adjustments at its ferronickel smelters, resulting in a lower production level.  The ferronickel sales in 9M14 amounted to 12,823 TNi, 12% higher than 9M13.

 

The un-audited revenue from the sales of ferronickel in 9M14 grew by 52% to Rp.2.61 trillion compared to the same period of 2013 due to higher sales volume and a 15% increase in the average selling prices of the ferronickel in the period to US$.7.91 per pound.

 

Gold Mining

 

ANTAM's main gold and silver production is sourced from its underground gold mines at Pongkor, West Java and Cibaliung, Banten. Indications of gold deposits at Pongkor were discovered by ANTAM's Geology Unit in 1981, and production commenced in May 1994 after ANTAM secured the mining license in 1992. The Cibaliung gold mine was acquired in 2009 from an Australian company, Arc Exploration and began to operate in 2010. The Cibaliung mine is operated by ANTAM's subsidiary, PT Cibaliung Sumberdaya. ANTAM also owns 25% of PT Nusa Halmahera Minerals which operates the Gosong mine in North Maluku. At the beginning of June 2013 ANTAM received an extension of forest borrow and use license for Pongkor gold mine until 2021.

 

ANTAM’s production volume of gold, which was sourced from the Pongkor and Cibaliung mines, was recorded at 1,172 kg (56,328 oz) in 9M14 or a 5% declined compared to 9M13.  The ebb in gold production was mainly attributed to the lower grade of the ores extracted at the two mines.  Meanwhile, the sales volume of gold in 9M14 reached 5,520 kg (177,472 oz) or 28% lower than 9M13 following the subdued gold production level.  The decline in the sales volume of gold drove down ANTAM’ un-audited revenue from the sales of the commodity in 9M14 by 26% to Rp.2.79 trillion.

 

 

Bauxite

 

Bauxite, the raw material for the production of alumina, was first discovered in 1924 at Kijang, Bintan Island, in the province of Riau, in northwestern Indonesia. Bauxite from Bintan Island has been mined and exported since 1935. In 1968 ANTAM acquired the mine. Thus, ANTAM is Indonesia’s longest running producer of bauxite. ANTAM exports the bauxite to alumina producers in Japan and China.

 

The preparation for the operations of the Tayan CGA plant, ANTAM’s 9M14 bauxite production grew by 128% to 244,272 wmt with a slaes volume of 31,179 wmt.  The net sale of bauxite in the period was recorded at Rp.9.9 billion.

 

Coal

 

ANTAM, through its subsidiary PT Indonesia Coal Resources, produces coal from the Sarolangun coal mine located in Jambi Province, Indonesia. The Non-JORC coal reserves currently stands at 8.25 million tons with the average value of 5,300 until 5,500 Kcal/kg. ANTAM currently sells its coal to the export as well as domestic markets.

 

ANTAM posted a coal production result of 376,946 ton and recorded a sales of 473,678 ton of coal with an un-audited revenue of Rp.128 billion.

 

ANTAM’s exploration activities in 9M14 focused on gold, nickel and bauxite commodities with total un-audited cost of Rp.8.2 billion.

 

Besides, P.T. ANTAM Tbk., is also engaged in the investment holding. P.T. ANTAM Tbk., has ownership interest of more than 50% in the following subsidiaries which are engaged in real estate, property, hotel, and information technology business.  The table of P.T. ANTAM’s subsidiary companies shall be as follows:

 

(In Rp million)

Name of Subsidiary

Lines of Business

Start of

Operations

Percentage (%) of

Ownership

Total Assets

(31 Dec. 2013)

Direct Ownership

 

 

 

 

- Asia Pacific Nickel Pty Ltd.

Investment company

2003

100.00

85,979.8

- PT. Indonesia Coal Resource

Mining Exploration

2010

99.98

221,944.8

- PT. Antam Resourcindo

Mining Exploration

1997

99.98

159,498.7

- PT. Mega Citra Utama

Construction, Trading, etc

--

99.50

135,562.2

- PT. Abuki Jaya Stainless Ind.

Stainless Steel Mfg

--

99.50

52,533.2

- PT. Borneo Edo International

Construction, Trading, etc

--

99.50

43,930.9

- PT. Dwimitra Enggang Khat.

Mining Exploration

--

99.50

5,140.7

- PT. Cibaliung Sumberdaya

Mining Exploration/Construction

2010

99.15

1,154,256.0

- PT. International Mineral Cap

Mineral Mining

2011

99.00

456,223.2

Indirect Ownership

 

 

 

 

- PT. GAG Nikel

Mining Exploration

--

100.00

85,400.4

- PT. Citra Tobindo Sukses

Coal Mining Exploration

2011

100.00

60,913.5

- PT. Feni Halim

Trading, Construction, etc.

--

100.00

959,817.9

- PT. Borneo Edo International

  Agro

Agricultural Industry

--

100.00

6,658.0

- PT. Gunung Kendak

Construction, Industry, etc.

--

100.00

5,422.1

- PT. Nusa Karya Arindo

Coal and Mineral Mining

--

100.00

7,727.8

- PT. Sumberdaya Arindo

Coal and Mineral Mining

--

100.00

4,616.1

 

In 9M14, ANTAM’s un-audited net sales was recorded at Rp.5.81 trillion, or down 34% compared to 9M13 in line with the ebb in the selling prices of the company’s main commodities of nickel and gold, and the government’s mineral ore export ban policy.  Gold made up the largest share of 9M14 un-audited net sales with a 48% contribution or amounting to Rp.2.79 trillion.

 

Generally, the mining activities for such minerals as copper, gold, silver, nickel ore, coal and etc. have fluctuated and for gold have been expanding in the country in the last five years. The trend has been in line with the weak prices of nickel and bauxite and with the firm price of gold on the international market. The mineral mining activities in Indonesia is seen from the total production of minerals as below.

 

Production Growth of Some Minerals

in Indonesia, 2002 – 2013

 

Year

Tin Ore Concentrate

(Ton)

Cooper Ore Concentrate

(Ton)

Nickel Ore

(Ton)

Bauxite

(Ton)

Coal

(Ton)

Gold

(Kg)

Silver

(Kg)

2002

88,142

3,786,695

4,366,235

1,283,485

103,060,426

142,238

288,806

2003

71,695

3,238,306

4,395,429

1,262,595

114,610,123

141,019

285,205

2004

70,338

2,810,333

4,118,980

1,330,827

126,850,806

92,444

262,932

2005

78,404

3,553,808

3,706,998

2,502,616

152,722,438

142,894

326,993

2006

80,933

2,938,009

4,353,833

7,270,072

181,060,907

93,176

270,153

2007

66,137

2,814,952

7,118,436

11,663,144

174,832,673

117,851

268,967

2008

47,626

2,340,100

6,557,103

16,791,368

181,569,985

62,695

302,292

2009

44,941

3,484,122

5,806,887

14,720,320

209,344,688

126,963

321,127

2010

40,188

3,463,771

5,972,841

27,410,375

224,677,000

106,316

288,717

2011

40,199

2,700,826

6,336,634

40,643,852

291,164,557

77,722

227,173

2012

44,202

2,385,121

8,571,383

31,443,325

361,028,398

69,291

247,827

  2013 *

17,202

1,673,345

7,824,018

35,713,570

249,826,115

63,581

99,675

 

According to the financial report of P.T. ANTAM Tbk., audited by Purwantono, Suherman & Surya (a member of Ernst & Young Global Ltd.), the total net sales of the company in 2010 amounted to Rp. 8,744.3 billion with a net profit of Rp. 1,686.9 billion, increased to Rp. 10,346.4 billion with a net profit of Rp. 1,924.7 billion in 2011 and rose again to Rp. 10,449.9 billion with a net profit of Rp. 2,989.0 billion in 2012.  In 2013, its net sales rose again to Rp. 11,298.3 billion with a net profit of Rp. 410.1 billion.   As per 30 September 2014, its total net sales amounted to Rp. 5,812.5 billion with a net loss of Rp. 563.8 billion.  Total assets of P.T. ANTAM Tbk., as of 30 September 2014 amounted to Rp. 22,711.4 billion.  Financial statement as of 31 December 2011, 2012, 2013 and as of 30 September 2014, are attached.  So far we did not hear that the P.T. ANTAM Tbk. has been black listed by Bank Indonesia (Central Bank) or having detrimental cases being settled in local district court.

 

Since April 2013, the Company’s management is headed by Mr. Ir. Tato Miraza (47) replacing Mr. Ir. Alwin Syah Loebis (60) as president director.  Mr. Miraza joined PT. ANTAM Tbk., in 1992 and was appointed as President Director on April 30, 2013. He graduated with a degree in Metallurgical Engineering, Bandung Institute of Technology, in 1991 and received a Master degree in Management from Prasetiya Mulia.   In his daily activities, he is assisted by five directors namely Mr. Hendra Santika (52), Mr. Djaja Marsukun Tambunan (50), Mr. Tedy Badrujaman (49), Mr. Hari Widjajanto (48) and Mr. I Made Surata (54).   The management maintains wide relation with home and overseas private businessmen as well as with the government sector.  So far, we did not hear that the company’s management involved in the business malpractices or detrimental cases that settled in the country and the company has not registered with the black list of Bank of Indonesia.

 

P.T. ANEKA TAMBANG Tbk., or P.T. ANTAM Tbk., is appraised to be good for business transaction.  However, in view of the economic condition in the country is still unstable and the operation of the company suffered from loss as of 30 September 2014, we recommend to treat prudently in extending any new loan to the company.

 

 

Attachment 1:

 

P.T. ANEKA TAMBANG Tbk. AND SUBSIDIARIES

INTERIM CONSOLIDATD STATEMENTS OF FINANCIAL POSITON

Per 31 December 2011, 2012, 2013 and as of 30 Sept. 2014

 (in Rp million)

 

D e s c r i p t i o n

30 Sept.

31 December

 

 

2014

2013

2012

2011

ASSETS

 

 

 

 

A. Current Assets

 

 

 

 

     - Cash and cash equivalent

4,031,010.7

2,792,737.8

3,868,574.8

5,639,678.6

     - Trade receivables

 

 

 

 

       * Third parties

524,538.8

1,152,368.7

1,721,967.4

1,246,689.0

       * Related parties

--

318.0

459.0

653.6

     - Other receivables

26,386.6

37,004.8

124,491.6

100,077.9

     - Inventories

2,068,241.3

2,445,933.9

1,449,967.9

1,687,897.3

     - Prepaid taxes

565,350.3

555,601.7

329,114.5

271,282.0

     - Prepaid expense

34,512.5

65,105.7

50,518.3

55,390.7

     - Other current assets

99,502.2

31,366.4

101,757.8

106,350.7

    Total Current Assets

7,349,542.4

7,080,437.2

7,646,851.2

9,108,019.8

B. Non Current Assets

 

 

 

 

     - Restricted cash

48,658.3

100,997.0

74,878.2

82,576.3

     - Investment in available-for sale

36,194.8

33,732.2

--

35,668.3

     - Investment in associates - net

3,028,814.0

3,582,548.7

3,956,042.9

173,259.7

     - Investment in jointly controlled entity - net

1,327,751.8

1,350,639.2

1,154,405.0

1,035,900.8

     - Property, plant and equipment

8,171,708.8

6,700,155.6

4,663,449.3

2,980,742.7

     - Mining properties

852,442.8

858,785.9

666,238.6

428,425.7

     - Exploration and evaluation assets

732,825.3

709,712.6

754,404.1

713,782.9

     - Deferred charges

25,029.0

40,396.2

31,587.5

47,758.9

     - Estimated claims for tax refund

405,837.3

722,498.1

476,176.6

2,362.8

     - Goodwill

133,651.5

179,941.2

185,374.0

185,374.0

     - Deferred tax assets

520,769.2

433,034.8

36,211.7

371,457.1

     - Deferred environmental and reclamation cost

--

--

1,047.9

1,218.5

     - Other Non-current assets

78,149.1

72,238.7

61,874.0

34,687.5

    Total Non Current Assets

15,361,831.7

14,784,680.2

12,061,689.7

6,093,215.3

TOTAL ASSETS = TOTAL LIABILITY AND EQUITY

22,711,374.0

21,865,117.4

19,708,540.9

15,201,235.1

LIABILITIES AND EQUITY

 

 

 

 

C. Current Liabilities

 

 

 

 

     - Trade payables

 

 

 

 

       * Third Parties

373,956.9

471,822.2

378,228.4

250,646.3

       * Related Parties

370,500.3

75,257.8

38,725.1

6,948.2

     - Accrued expenses

215,511.2

331,623.9

414,007.0

244,796.1

     - Short-term employee benefits liability

--

41,599.4

123,170.9

134,786.2

     - Taxes payable

70,796.5

180,599.8

150,007.9

87,685.1

     - Advances from customers

122,881.1

84,136.2

189,619.6

67,439.8

     - Short-term bank loan

3,262,774.5

2,469,800.0

1,663,900.0

8,000.0

     - Current maturities of long-term liabilities

 

 

 

 

       * Bank loans

98,611.9

98,426.2

--

--

     - Provision for environmental and reclamation cost

30,337.4

30,337.4

45,990.8

22,697.7

     - Other payables

47,480.6

71,908.9

37,756.6

23,447.1

     Total Current Liabilities

4,592,850.4

3,855,511.6

3,041,406.2

846,446.5

D. Non Current Liabilities

 

 

 

 

     - Long term liabilities - net

--

--

--

--

     - Provision for environmental and reclamation cost

244,996.7

239,345.5

205,728.5

199,780.9

     - Bonds payable

2,994,049.7

2,993,510.4

2,992,844.0

2,992,235.9

     - Investment loan

2,007,846.7

1,223,734.2

--

--

     - Pension and other post-retirement obligation

546,220.4

568,114.1

336,835.0

387,787.2

     - Deferred tax liabilities

--

--

296,357.9

--

     - Other non-current liabilities

188,000.0

191,414.0

3,053.3

2,941.0

     Total Non Current Liabilities

5,981,113.5

5,216,118.2

3,834,818.7

3,582,745.0

 

 

 

 

 

E. EQUITY

 

 

 

 

     - Issued and fully paid up capital

953,846.0

953,846.0

953,846.0

953,846.0

     - Additional paid-in capital

29,704.9

29,704.9

29,704.9

2,526.3

     - Difference in foreign currency translation

55,060.8

54,994.8

103,200.3

107,291.4

     - Difference arising from restructuring

--

--

21,334.6

21,334.6

     - Retained Earnings

 

 

 

 

       * Appropriated

11,613,209.8

11,295,503.1

8,751,356.4

7,768,131.7

       * Un-appropriated

(511,059.5)

462,790.7

2,997,564.7

1,932,339.3

     - Treasury stock

(3,377.5)

(3,377.5)

(3,377.5)

(13,435.1)

     - Net equity attributable to owners of the parent

12,137,384.5

12,793,461.9

12,832,293.7

10,772,034.1

     - Non-controlling interests

25.7

25.6

22.4

9.4

     Total Equity

12,137,410.2

12,793,487.5

12,832,316.1

10,772,043.6

INCOME STATEMENT

 

 

 

 

a. Net Sales

5,812,494.7

11,298,321.5

10,449,885.5

10,346,433.4

b. Cost of Goods Sold

(5,291,717.7)

(9,682,520.8)

(8,427,157.6)

(7,318,735.2)

c. Gross Profit

520,777.0

1,615,800.7

2,022,728.0

3,027,698.2

d. Operational Expenses

(640,262.0)

(1,194,769.0

(1,126,863.9)

(1,014,819.7)

e. Operational Profit

(119,485.0)

421,031.7

895,864.1

2,012,878.4

f.  Other Income (Expenses)

(264,859.2)

(553,962.1)

2,999,631.0

555,903.0

g. Profit Before Income Tax

(531,998.9)

(132,930.4)

3,895,495.1

2,568,781.4

h. Income Tax  Benefit (Expense)

(87,577.9)

542,877.8

(902,379.3)

(640,889.4)

i.  Profit before Minority Interest

(563,906.0)

409,947.4

2,993,115.7

1,927,892.0

j.  Other Comprehensive Income (Expenses)

66.0

191.3

(4,091.1)

(3,152.6)

k. Net Profit

(563,839.9)

410,138.7

2,989,024.6

1,924,739.4

     Notes: Audited by Purwantono, Suherman and Surya (A member of Ernst & Young Global Ltd)

 

 

Attachment 2:

 

Litigation Maters and Withdrawal of Mining Authorization

 

1. Withdrawal of Mining Authorizations

 

On March 2, 2010, the Company received the Legal Opinion from Zulfadli Soewito Law Office regarding the Company’s mining exploitation authorization at Obi Island. Based on the Legal Opinion, it is stated, among others, that:

 

1. SK No. 323 is a decision which is only to explain the legal circumstances and can not be

    implemented by the Ambon State Administrative Court.

2. The Head of the District of South Halmahera can not require the Company to leave the

    mining area by using SK No. 323.

3. By using SK No. 323 which is only to explain the legal circumstances, the Head of the District

    of South Halmahera can not issue IUP in the Company’s mining area at Obi Island.

4. The cancellation of the Company’s mining exploitation authorization only can be made by the

    Director General of General Mining of the Department of Energy and Mineral Resources of 

    the Republic of Indonesia on behalf of the Ministry of Energy and Mineral Resources of the

    Republic of Indonesia (MESDM), and the Company has been granted special permit by

    MESDM, and the special permit on the Company’s mining exploitation authorization can not

    be cancelled by anyone until the end of the period, which is 2028.

 

Legal Issues Related to Mining Authorizations

 

The Company’s exploration mining authorization for nickel mining at Langgikima and Boenaga, Southeast Sulawesi has been withdrawn by the Decision Letter No. 545/199 dated September 14, 2007 of the Head of the District of North Konawe. The Company received the decision letter on May 4, 2008, after receiving the Letter No. 545/326 dated April 14, 2008 of the Head of the District of North Konawe.

 

2. Reduction of Mining Authorizations

a.     The area of the Company’s exploitation mining authorizations for nickel mining at Tapunopaka and Bahubulu Island in Southeast Sulawesi has been reduced from 6,213 hectares, which include Tapunopaka and Bahubulu, to 5,000 hectares only for Bahubulu based on the Decision Letter No. 153 Year 2008 dated March 17, 2008 of the Head of the District of North Konawe (SK No. 153). Based on this reduction, the Company has lost potential revenues from nickel ore of about 83.2 million tons.

 

On August 11, 2008, the Company received the Legal Opinion from Soemadipradja & Taher Law Office regarding the withdrawal of the mining authorizations in Tapunopaka and Bahubulu Island. Based on the Legal Opinion, the Decision Letter of the Head of the District is against the prevailing law and, accordingly, the Company still has the right to conduct mining activities in those areas.

 

On October 28, 2008, based on the Decision Letter No. 10/G/2008/PTUNK of the Kendari State Administrative Court (“SK-PTUN No.10G”), SK No. 153 was cancelled.

 

In November 2008, the Head of the District of North Konawe appealed the decision of SK PTUN No. 10G to the Makassar High State Administrative Court.

 

On March 3, 2009, based on its Decision Letter, the Makassar High State Administrative Court No. 10/ B.TUN/2009/PT.TUN.MKs (“SK PTUN No. 10”) decided to cancel the decision of SK PTUN No. 10G.

 

On April 24, 2009, the Company appealed to the Supreme Court regarding the decision of SK PTUN No. 10.

 

On January 11, 2010, the Company received the certain Decision Letter No. 4 Year 2010 of the Head of the District of North Konawe regarding cancellation of SK No. 153, SK No. 5 Year 2010 about Revocation of Permit issued by the Head of the District of North Konawe on the Company’s KP, and SK No. 6 Year 2010 about the Cancellation of SK of the Head of the District of North Konawe No. 267 Year 2007 dated September 29, 2007 about granting of KP Exploration (KW 07 STP 034), and received IUP for some mining areas in North Konawe, Southeast Sulawesi; SK No. 11 Year 2010 regarding the granting of Exploration Mining Right (KW 07 APR ER 002) for Sawa, Lembo, and Lasolo mining districts, valid until January 11, 2014, SK No. 12 Year 2010 regarding the granting of Exploration Mining Right (KW 99 NPP 024) for Asera mining district, valid until January 11, 2014, SK No. 13 Year 2010 regarding the granting of Operation Production Mining Right (KW 99 NPP 001) for Molawe mining district, valid until January 11, 2030, SK No. 14 Year 2010 regarding the granting of Exploration Mining Right (KW 99 STP 057b) for Lasolo mining district, valid until January 11, 2014.

 

On January 27, 2010, the Company received the Legal Opinion from Mayasari Law Office regarding the Company mining exploitation authorization in Tapunopaka. Based on the Legal Opinion, SK No. 153 is against the prevailing law and, accordingly, the Company still has the right to conduct mining activities in those areas.

 

On February 10, 2010, the Company received an announcement from the Kendari State Administrative Court regarding the result of the appeal to the Supreme Court.The announcement states that based on its Decision Letter No. 284K/TUN/2008 dated December 16, 2009 (“MA 2009”), the Supreme Court dismissed the suit filed by the Company regarding the cancellation of SK No. 153. As of March 2, 2010, the Company has not received the MA 2009 but the management believes the Company can maintain the mining authorizations which are legally owned by the Company. Prior to the abovementioned Supreme Court ruling, however, on January 11, 2010, SK No. 153 has been cancelled by the Head of the District of North Konawe and the Company has received IUP (previously known as KP) for the mining areas.

 

a.   Based on the Decision Letter No. 2356 Year 2007 dated September 29, 2007 of the Head of the District of North Konawe, the mining authorization has been issued which covers the same area with the Company’s nickel exploration mining authorization in Mandiodo, Southeast Sulawesi.

b.   Based on the Decision Letter No. 92 dated April 13, 2007 and the Decision Letter No. 204 dated July 6, 2007 of the Head of the District of Kolaka, the new mining authorizations have been issued to other companies in the north and central mine areas at Pomalaa, Southeast Sulawesi that are owned by the Company through its mining authorizations No. KW.98PP0214 and KW.98PP0216, respectively.

 

As of the completion date of the consolidated financial statements on April, 2010, the management is working on the above matters including pursuing legal actions to maintain the mining authorizations which are legally owned by the Company. Regarding the withdrawal of the Company’s mining exploitation authorization at Obi Island, the management is still and will continue working on the settlement by approaching the Government body with higher authority than the Head of District and is considering proposing Judicial Review (Peninjauan Kembali) to the Supreme Court if no solution can be reached. In addition, based on Geographical System Information of the Department of Energy and Mineral Resources of the Republic of Indonesia, a special permit which has been issued to the Company based on the Letter No. 1150/30/MEM.B/2008 dated February 13, 2008 of the Ministry of Energy and Mineral Resources of the Republic of Indonesia is still under the Company’s name and valid up to 2028 and because of the status of the mining area as property of the Government of Indonesia, the Company has been prioritized to have the IUP Operation and Production based on the Law No 4 Year 2009 regarding mining and coal (UU Minerba).

 

Management believes that the allowance for deferred exploration and development expenditures is adequate to cover decline in value of deferred exploration and development expenditures and that the Company will be able to maintain its mining authorizations.

 

PP No. 23 regulates further provisions concerning preferential treatment of minerals and/or coal for domestic purposes; procedures for granting the IUP, Special Mining Right (“IUPK”) and People Mining Right (“IPR”); implementation of community development and empowerment; the procedures for reporting the results of exploration and production operations and the share divestment of IUP holder and IUPK holder whose shares are owned by foreign shareholders.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.70

UK Pound

1

Rs.93.41

Euro

1

Rs.71.33

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

NIT

 

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

 

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.