ANTM has booked Rp2.9tn FY12 net income (+55.3% yoy, +1458.2% qoq), above consensus’ estimates (278.2%). Albeit the in-line revenue to operating income compared to consensus, gain from value adjustment under other income boosted the company’s bottom line by Rp2.5tn.

*  Gross and operating profits both declined due to rising mining operation costs as a result of continuing R&D for production while ASP decreased.

*  Ferronickel production declined by 6.69% in FY12 to 18,372 tni while its sales remained relatively flat at 19,527 tni from 19,530 tni in 2011. With an ASP of USD7.73/lb, ferronickel sales came up to be Rp3.14tn last year.

*  Nickel ore sales was recorded at Rp3.07tn which grew by 24.8% yoy due to increase in production volume. Total production rose to 6.47mn wmt while sales increased to 8mn wmt.

*  Gold sales, recorded at 7,024 kg, went above ANTM’s target of 7,009 kg although production was only at 2,849 kg vs the target of 3,000 kg. Gold sales thus was recorded at Rp3.63tn in FY12. This year, ANTM targets gold production volume of 3,316 kg and sales of 7,601 kg boosted by the production hike in Pongkor.

*  We are currently reviewing our model to reflect the most updated numbers. ANTM is currently trading at 10.57-11.71x PE13-14F.
me @ LOTS Trading Club (LTC)