Antam expects gold sales to exceed 5.8 ton target

Jakarta (ANTARA News) - State mining firm PT Aneka Tambang Tbk (ANTM) said its gold sales this year may reach 6 tons, well above the target of 5.3-5.8 tons on the public`s high interest in investing in precious metal.

"We hope the gold sales can exceed the target of 5.3 tons to 5.8 tons for this year. In the third quarter alone, the gold sales has reached 5.85 tons. It is likely the gold sales may reach around 6 tons this year," Antam President Director Alwinsyah Lubis said here on Thursday.

PT Antam posted a profit of Rp1.56 trillion in the first nine months of 2011, up 64 percent from the same period the year before.

"The increase was particularly caused by the rising sales of feronickel and gold and improving sale prices," Alwinsyh said.

Meanwhile, Antam Finance Director Djaya M Tambunan said the company was expected to spend Rp5.8 trillion on capital expenditures next year and the fund would originate from the issuance of bonds, banking loans and internal cash.

"The fund will be used to finance the company`s projects such as feronickel project in East Halmahera. This year Antam has allocated US$320 million on capital expenditures," he said.

Antam is planning to issue bonds worth Rp4 trillion. In the first phase, the company will issue bonds worth Rp1.5 trillion at a coupon of 8.375-9.75 percent. The bonds will be divided into series A with a maturity of seven years and series B with a maturity of 10 years.