How Did ANTAM Achieve a 240% Profit Surge in H1 2025?

• Net sales jumped 155% to Rp59.02 trillion in 1H25
• Gold sales dominate with 84% contribution and 163% growth
• Net profit surged 240% to Rp5.14 trillion
• No dividend proposed for 1H25 despite strong earnings
• Ongoing legal disputes and regulatory changes remain key risks

Strong Financial Performance Amid Industry Challenges

PT Aneka Tambang Tbk (ANTAM) has delivered an impressive financial performance for the first half of 2025, reporting net sales of Rp59.02 trillion, a 155% increase compared to the same period last year. This surge was largely driven by the gold segment, which accounted for 84% of total sales and grew by 163%, reflecting both favorable global geopolitical conditions and effective domestic strategies.

The nickel segment also contributed significantly, with sales rising 125% to Rp7.87 trillion, supported by strong domestic industrial demand for high-quality nickel ore. Meanwhile, the bauxite and alumina segment doubled its sales to Rp1.46 trillion, underscoring ANTAM’s diversified commodity base.

Profitability and Cash Flow Strengthen Financial Position

ANTAM’s net profit soared 240% to Rp5.14 trillion in 1H25, accompanied by a 194% increase in EBITDA to Rp7.11 trillion. Gross profit tripled to Rp8.24 trillion, and operating profit surged over tenfold to Rp6.14 trillion. These robust earnings translated into a basic earnings per share of Rp195.43, more than tripling from Rp64.52 in 1H24.

The company’s balance sheet also strengthened, with total assets rising 23% to Rp48.38 trillion and equity increasing 14% to Rp33.71 trillion. Net cash flow from operating activities jumped 277% to Rp2.29 trillion, while cash and cash equivalents grew 20% to Rp10.51 trillion, highlighting solid liquidity and capacity for future investments.

Dividend Policy and Shareholder Returns

Despite the strong half-year results, ANTAM’s shareholders approved a final cash dividend of Rp3.65 trillion for the full year 2024, representing 100% of net income for that year. However, the company does not propose any dividend distribution based on the 1H25 results, signaling a cautious approach to capital allocation amid ongoing investments and market uncertainties.

Operational Footprint and Strategic Partnerships

ANTAM continues to operate a broad portfolio of mining and processing assets across Indonesia, including gold, nickel, bauxite, and alumina projects. The company holds significant stakes in joint ventures and associates such as PT Weda Bay Nickel and PT Jiu Long Metal Industry, with recent strategic transactions including the acquisition of a 30% stake in JLMI and divestments to HongKong Ningbo Contemporary Brunp Lygend Co., Ltd.

Regulatory Environment and Legal Challenges

ANTAM’s operations are subject to evolving Indonesian mining and tax regulations, including recent government decrees on royalty rates, mineral processing requirements, and tax administration reforms. The company is actively managing compliance with these frameworks while navigating several significant legal disputes, notably related to refinery contracts and gold bar deliveries, which carry material financial implications but remain subject to ongoing judicial review.

Management emphasizes its commitment to good mining practices, environmental stewardship, and stakeholder engagement, including addressing a temporary suspension of operations at one subsidiary and advancing joint venture restructurings to support downstream development and electric vehicle battery ecosystem initiatives.

Bottom Line?

ANTAM’s stellar half-year results set a high bar, but ongoing legal and regulatory developments will be critical to watch as the company navigates its next growth phase.

Questions in the middle?

• How will ongoing legal disputes impact ANTAM’s future earnings and cash flow?
• What are the implications of recent Indonesian mining regulations on ANTAM’s operational strategy?
• Will ANTAM resume dividend payments based on its strong 1H25 performance?