ANEKA TAMBANG (ANTM) - 1H 2014 Results Update

Rp bn                  1H14       1H13       yoy Revenue              3,987      6,126      -35% Gross Profit          261         951        -73% Operating Profit    (144)       384        -137% Net Income          (639)      374         -271% Gross Margin         7%        16%        -9% Operating Margin   -4%        6%         -10% Net Margin           -16%       6%         -22%

In 1H14, Antam reported net sales of Rp3,9 tn, a decline by 35% compared to 1H13. It was in line
with the implementation of a ban on exports of mineral ores by the Government. Gold has the largest
contribution to net sales 1H14 with the percentage contribution reached 49%, hovering at Rp1,95
trillion. Antam's 1H14 financial performance was also depressed because of the imposition of a nonoperating
accounting treatment, mainly due to adjustment of the value of investment in PT Nusa
Halmahera Minerals and loss from PT Indonesia Chemical Alumina. In the 1H14, total capex
comprises of Rp1.01 tn. Antam's is still increasing ferronickle capacity through Pomalaa Ferronickel
Expansion Project, which is scheduled to enter operational phases in 2015. In the 1H14,
commissioning phase of the plant Tayan is still running on the track while the EPC progress
Ferronickel Pomalaa Expansion Project has reached 57% as of June 30 in 2014. ANTM is trading at
PER14 31.6x (vs mining sector’s average 20.2x).