Antam not to distribute dividends for 2016

Jakarta (ANTARA News) - State-owned tin mining company PT Aneka Tambang (Antam), after its shareholders general meeting (RUPS), has decided not to distribute dividends to its shareholders as it considers using it for business expansion.

"The RUPS has decided not to distribute profit and dividends for 2016, considering its support for the operation and infrastructure project funding," Dimas Wikan Parmudhito, the finance director of PT Antam, said after the RUPS.

Parmudhito stated that in 2016, the company booked a net profit of Rp65 billion, a sharp increase from losses it suffered in 2015, which stood at Rp1.4 trillion.

Based on regulations, when Antam holds initial public offering (IPO) every year, it is possible for the company to allocate 30 to 70 percent dividend to stakeholders.

However, if it is carried out with the assumption of 30 percent dividend of the net profit of Rp65 billion and with 24 billion shares, the value of each dividend to be distributed is only about Rp0.8 per share.

"The value of the dividend is less than one rupiah. So, the RUPS decided that the dividend will not be distributed but be used for business expansion," Pramudhito noted.

In 2016, Antam produced 20,298 tons of nickel in ferronickel (TNi), up by 110 percent from the target of 18.5 thousand TNi.

The volume of its ferronickel sales stood at 20 thousand TNi, or 108 percent of the target set at 19.3 thousand TNi.

Its gold production from the Pongkor and Cibaliung mining sites stood at 2,207 kilograms, relatively stable compared to that in 2015.

Antam will operate P3FP, which could increase its yearly ferronickel production from 18 thousand to 20 thousand TNi to 27 thousand to 30 thousand TNi.

It has set a target to produce and sell 24 thousand TNi. For gold, it has set a target to produce 2,270 kilogram and sell 11.4 tons.(*)