PEFINDO affirms "idAA" rating with Negative outlook for Antam
Thursday, September 13 2012 - 08:10 AM WIB
The outlook of the rating is revised to ?Negative? from ?Stable?, reflecting the declining nickel price to level lower than anticipated, which could adversely affect the Company?s cash flow protection measures amid rising leverage position to finance its expansion program. The ratings reflect ANTM?s sizable amount and good quality of resources and reserves of its major products, vertically integrated operation, and good product diversification.
However, the ratings are constrained by the fluctuating revenue and margins due to fluctuation of nickel price and ANTM?s aggressive capital structure in the medium term to finance its downstream projects.
Founded in July 1968, ANTM is a state-owned mining company in Indonesia producing nickel ores and ferronickel (FeNi), gold, bauxite, and coal.
The Company?s operational activities are located in Southeast Sulawesi and Halmahera for nickel mines with three ferronickel processing plants in Pomalaa (Southeast Sulawesi), Pongkor (West Java) and Cibaliung (Banten) for gold mines and factories, Tayan (Kalimantan) for bauxite mine, and Sarolangun (Jambi) for coal mine to support its future coal fired power plants.
As of June 30, 2012, ANTM?s shareholders consisted of Government of Indonesia (GOI, 65%) and the public (35%). (end of release)