Permit Hurdles and Market Risks Loom Despite ANTAM’s ESG Upgrade

Strong Operational Momentum Across Key Commodities

PT ANTAM Tbk (ASX, ATM) has delivered a compelling operational performance for the nine months ended September 30, 2025, with significant growth across its core metals portfolio. Gold sales climbed 20% year-on-year to 34,164 kilograms (1,098,398 troy ounces), driven by robust domestic demand amid global economic uncertainties. Nickel ore production surged 72% to 12.55 million wet metric tons, while sales nearly doubled to 11.23 million wet metric tons, reflecting ANTAM’s strategic focus on meeting domestic industry needs and export markets.

Bauxite production and sales also posted remarkable gains, with output rising 263% to 2.31 million wet metric tons and sales increasing over tenfold to 1.10 million wet metric tons. Chemical grade alumina production grew 27%, supporting downstream processing initiatives. These results underscore ANTAM’s successful efforts to optimize operations and capitalize on Indonesia’s mineral resources despite challenges such as nickel price pressures and supply constraints.

Advancing Sustainability and Governance

ANTAM’s commitment to Environmental, Social, and Governance (ESG) principles is reflected in a marked improvement in its Sustainalytics ESG risk rating, which was downgraded from high risk to medium risk. This shift highlights strengthened risk management, enhanced transparency, and solid corporate governance practices. The company’s sustainability initiatives include renewable energy certificate purchases that have elevated clean energy use to 94% in its Precious Metals Processing and Refinery unit, mangrove ecosystem restoration programs, and urban farming collaborations aligned with national environmental goals.

Recognition of ANTAM’s ESG efforts came through multiple awards in 2025, including the Indonesia Commodity & Derivatives Exchange (ICDX) appreciation for clean energy commitment, the Environmental & Social Innovation Award (ENSIA), and accolades for workplace excellence. These honors reinforce ANTAM’s positioning as a responsible industry leader balancing growth with social and environmental stewardship.

Strategic Downstreaming and Exploration Initiatives

To enhance value creation, ANTAM is advancing several downstream projects such as the precious metals manufacturing facility at the Java Integrated Industrial and Ports Estate (JIIPE) and the Smelter Grade Alumina Refinery (SGAR) Project. A recent cooperation agreement with PT Freeport Indonesia secures a steady supply of high-purity gold, strengthening the company’s raw material base for domestic sales expansion.

Exploration activities remain a priority, with ongoing programs targeting gold in Pongkor, nickel in Southeast Sulawesi and North Maluku, and bauxite in West Kalimantan. These efforts aim to sustain resource reserves and support future production growth, although some mining permits are currently under renewal or objection processes, which may influence operational continuity.

Financial Strength and Shareholder Returns

ANTAM’s financial discipline is evident in its decision to distribute 100% of 2024 net profit as dividends, amounting to IDR 3.65 trillion. The company’s market capitalization stood at IDR 75.94 trillion as of September 30, 2025, with steady share price performance on both the Indonesia Stock Exchange and ASX. This full dividend payout signals confidence in the company’s cash flow generation and outlook amid a complex commodity environment.