ANTM Exceeds Expectations with Robust First Quarter Performance

PT Aneka Tambang Tbk (ANTM),a leading Indonesian mining company,has reported a substantial increase in profitability for the first quarter of 2025. This impressive performance is largely attributed to strong nickel ore sales and improved margins in its gold business, leading to renewed optimism and revised target prices for ANTM shares.

Revenue Stability and Growth Drivers

Despite a volatile global market,Antam managed to maintain a relatively stable revenue stream,recording Rp 26.2 trillion in the first quarter of 2025. This represents a 1% increase quarter-over-quarter and a remarkable 203% increase year-over-year. Financial analysts at BRI Danareksa Sekuritas noted that this achievement surpassed their expectations, reaching 35% of their full-year estimation, while also exceeding the analyst consensus by 34%.

The key drivers behind this success were robust gold sales, totaling 13.7 tons, and a important increase in nickel ore sales, reaching 3.8 million wet metric tons (WMT). The surge in nickel ore sales represents a substantial 45% increase compared to the previous quarter.

“The achievement was supported by a strong gold sales of 13.7 tons… and also nickel ore sales by 3.8 million WMT,an increase of 45% QoQ,”

BRI Danareksa sekuritas analysts,Timothy Wijaya and Naura Reyhan Muchlis

margin Expansion and Profitability

Antam’s profitability was further bolstered by significant margin improvements in both its gold and nickel operations. The gold margin increased to 7.9%, while the nickel margin saw a more substantial jump to 35%.This increase in nickel margins directly correlates with the surge in nickel ore sales. Though, sales of ferronickel (Feni) experienced a 38% decline quarter-over-quarter.

Thes factors contributed to a net profit of Rp 2.1 trillion for the first quarter of 2025, marking a 47% increase quarter-over-quarter and an impressive eightfold increase year-over-year. This figure substantially exceeded both internal estimates and analyst consensus,surpassing them by 40% and 51%,respectively.

“thus, ANTM posted a net profit of Rp 2.1 trillion in the first quarter of 2025… The achievement was far above our estimated and consensus by 40% and 51%,”

Timothy Wijaya, BRI Danareksa Sekuritas

Digital Innovation: Brankas Gold Submission

In a move to further expand its reach and cater to the growing demand for digital assets, ANTM is actively promoting its “Brankas Gold” application. This platform, whose name translates to “Planning Safe Manage Gold,” enables users to purchase digital gold seamlessly.

The application offers several incentives, including a discount of approximately Rp 57,900 per gram compared to the price of physical gold, and an additional discount of Rp 1,500 per gram for corporate buyers. Customers can request the physical printing and delivery of their digital gold holdings after a waiting period of 15-20 working days, subject to supply availability.

The Brankas Gold application also incorporates an annual membership fee structure based on the amount of gold held. Individual accounts, with a maximum holding of 15 kg, incur fees ranging from Rp 100,000 to Rp 9 million per year. Corporate accounts, with a maximum holding of 10 tons, face fees ranging from Rp 4 million to Rp 6 billion per year.

Market Outlook and future Prospects

Antam’s strong first-quarter performance, coupled with its strategic focus on digital innovation, positions the company favorably for continued growth in the Indonesian mining sector. The company’s ability to capitalize on both gold and nickel markets, while adapting to evolving consumer preferences through initiatives like the Brankas Gold application, suggests a promising outlook for the remainder of 2025 and beyond. Investors are closely monitoring ANTM’s progress, with analysts actively reassessing target prices for the company’s shares.