ANTAM Reports 6% Sales Growth and 34% Profit Rise in H1 2026

Robust Profit Growth Amid Market Fluctuations

PT ANTAM (ASX:ATM) delivered a solid half-year performance for the period ending June 30, 2026, with net sales climbing 6% to Rp62.71 trillion from Rp59.02 trillion in the prior corresponding period. The gain was underpinned by steady gold sales, which remain the backbone of the business, contributing 80% of total revenue at Rp50.39 trillion, up 1% year-on-year.

Nickel sales, encompassing ferronickel and nickel ore, surged 32% to Rp10.41 trillion, reflecting the company's strategic focus on expanding its nickel segment amid evolving industry dynamics. Bauxite and alumina sales also rose 28% to Rp1.88 trillion, rounding out a diversified commodity mix.

Profitability Bolstered by Margin Expansion and FX Gains

Profit after tax jumped 34% to Rp6.91 trillion, supported by a 32% increase in gross profit to Rp10.85 trillion and a 38% rise in operating profit to Rp8.44 trillion. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew 35% to Rp9.62 trillion, highlighting operational leverage.

Other income rose 41% to Rp559 billion, primarily driven by higher foreign exchange gains and an increased share of profits from associates, which collectively lifted basic earnings per share by 36% to Rp265.85.

Strong Balance Sheet and Cash Flow Discipline

ANTAM's balance sheet showed marked improvement with total assets up 27% to Rp61.27 trillion and total equity rising 14% to Rp38.53 trillion. The company maintained a healthy liquidity position with cash and cash equivalents of Rp9.23 trillion, providing flexibility to fund operations and strategic projects.

Management emphasised financial discipline, focusing on cash conversion, working capital optimisation, and prudent liquidity management. Despite a net cash outflow from operating activities of Rp751 billion in 1H26, this reflected positive progress from the first quarter and aligns with ongoing investments.

Dividend Policy and Shareholder Returns

Shareholders approved a final cash dividend of Rp5.05 trillion for the 2025 financial year at the June 2026 AGM, representing 70% of net income for the year. This dividend, equivalent to Rp209.99 per share or Rp1,049.94 per CHESS Depository Interest (CDI) for ASX holders, was paid on July 10, 2026.

However, ANTAM does not propose to pay dividends based on the net income for the half-year ending June 30, 2026, reflecting a cautious approach as the company balances growth investments and shareholder returns.

Operational Segments and Geographic Exposure

The company's operations are segmented into nickel, precious metals and refinery, and bauxite and alumina. Nickel contributed Rp10.41 trillion in revenue, precious metals Rp50.39 trillion, and bauxite and alumina Rp1.88 trillion in 1H26. The majority of sales (96%) were domestic, consistent with ANTAM's strategy to deepen its local customer base.

Export sales accounted for a modest portion of revenue, with ferronickel fully exported and domestic nickel ore production aligned with local demand. The company continues to advance key downstream projects including integrated battery ecosystem development and alumina refinery expansion.

Regulatory and Legal Landscape

ANTAM disclosed ongoing legal proceedings, including disputes related to refinery contracts and gold bar deliveries. While some rulings have been unfavourable, management remains confident and is pursuing all available legal remedies. Contingent liabilities related to these cases are recognised but not fully quantified.

The company also outlined compliance with evolving Indonesian mining regulations, including new government decrees on mining business licensing, royalty rates, and export governance. Recent regulatory changes have yet to materially impact operations but warrant ongoing monitoring.

Financial Risk Management and Outlook

ANTAM manages commodity price risk conservatively, with no direct financial instruments tied to commodity price fluctuations. Currency risk remains a factor due to significant US dollar denominated revenues and borrowings, with a 5% appreciation or depreciation in the Rupiah against the US dollar estimated to impact profit before tax by Rp34.7 billion.

Interest rate risk is limited to floating rate borrowings, with a 0.1% rate change expected to affect profit by approximately Rp1.7 billion. Credit risk is mitigated through prudent customer selection and use of letters of credit for export sales.

The company’s debt-to-equity ratio stood at 59% as of June 30, 2026, up from 44% at the end of 2025, reflecting increased borrowings to support growth projects. ANTAM continues to maintain a strong capital position and liquidity buffer.

With a government ownership stake of 65% via MIND ID, ANTAM is positioned at the centre of Indonesia’s strategic mineral and battery ecosystem development, balancing operational resilience with regulatory compliance and ambitious growth plans.

Investors should watch how ANTAM navigates its legal challenges and regulatory environment while progressing downstream projects that could shape its medium-term trajectory.

12% increase in 2Q26 gold production and 38% increase in 2025 cash dividend provide context for the company’s recent financial momentum.