Squeezed margins of nickel producers (2)
State-owned mining company Aneka Tambang (ANTM) booked net profit of Rp1.55 trillion in the first half of 2024, down from Rp1.89 trillion in the corresponding period of 2023. Non-cash foreign exchange gain of Rp576 billion against loss of Rp319 billion in the first half of 2023 prevented ANTM from reporting deeper correction in bottomline.
Oil and Gas Journal
Prabowo-Gibran will certainly face a more difficult environment with enlarged oil and gas deficit amidst difficulties to increase domestic production in one hand and implementing energy transition on the other hand to meet the country’s climate change commitments.
Squeezed margins of nickel producers
Nickel ended slightly higher by 0.54% to US$15,910 per ton on the London Metal Exchange (LME) Monday (Jul 29), but not enough to cheer up investors. Shares of nickel producers listed on the Indonesia Stock Exchange (IDX) ended mixed on narrow range as some anticipate further squeezed profit margins.
Nickel-EV Journal
Shares of nickel miners were mostly under pressure Thursday (Jul 25) due to downfall of nickel prices related to persistent oversupply concern among market participants. The commodity was traded at US$15,817 per ton, down 7.26% from last month and lost nearly 26% from a year ago. In the first half of 2024, demand for primary nickel was helped by stainless steel, while EV batteries provided little incentives.
Antam: The Biggest Irony of Resource Nationalism
Shares of Aneka Tambang (ANTM), a state company involved in gold, bauxite, and nickel mining, ended slightly lower at Rp1,310 on Wednesday (Jul 25) to make a market capitalisation of Rp31.5 trillion, on par with equity (Rp31.4 trillion). The company, which has been rocked by various scandals and corruption cases, was worth way below Harita Nickel (Rp57.1 trillion) despite the fact that it has long sit over huge nickel resources.
Freeport & Indonesian operation
Shares of Freeport McMoRan (FCX), co-owner of PT Freeport Indonesia, ended lower by 1.6% on the NYSE Tuesday (Jul 23) as investors responded to 1.5% correction of copper price and lower than estimated sales volume of gold and copper from Grasberg mine in Papua for the second quarter due to shipping delays associated with the timing of renewing copper concentrate export permit.
Prabowo and the Sugar Project in Papua
In November 2023, as we know, Minister of Agriculture Andi Amran Sulaiman revealed that the Government plans to develop a sugar factory sitting on 1 to 2 million hectares of land in Papua, with the initial development for 200,000 hectares of land.
Hashim’s ambition in renewable
Pretty much like the previous booms of investments (coal, palm oil, and nickel), everbody (major business groups) seems to have renewable energy portfolio. As discussed in the previous article (The Thohirs & Prabowo), Hashim Djojohadikusumo (brother of president elect Prabowo Subianto) has just decided to join a giant hydropower project in North Kalimantan province.
Renewable energy investments
Shares of Barito Renewables (BREN) eroded 8.53% to Rp7,777 on Wednesday (July 18) to make a market capitalization of Rp1,040 trillion. Still overtly overvalued because Pertamina Geothermal (PGEO), which has almost similar size, was only Rp52 trillion or 1/20 of BREN.
In GOLD they trust
Gold, by far, is among the best mining commodities thanks to global economic uncertainties. Gold has gained 24% year-on-year, which could benefit Indonesian goldminers and revive investments in exploration activities. Delay in approval for work and budget plan (RKAB) of mining companies and the issuance of export permits, unfortunately, might lead to lower sales volume than expected.