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PP
PT AntPT Ant
An OverAn Ove
r
OutlookOutlook
Global NDR aGlobal NDR aMayMay
ised For Growthised For Growth
m Tbkm Tbk
view of Performance and
view of Performance and
d Conferenced Conference20082008
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Discl
We are not in a position to aadvising you, and the conten
not be construed as any advi
purchase any of our securitie
investment in our securities, tor how or whether you can ef
your investment.
All information contained in t
made public. Actual results could differ ma
imer
vise you, we are nots of this presentation must
e to you, on (a) whether to
or, (b) if you hold an
he value of your investmentfect any trades relating to
is presentation has been
erially from forecasts.
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Our Key MessageOur Key Message
We are poised for growtreserves and resources awe will create substanticome.
We have a strong and strstructure, healthy cash fproject pipeline, we arestage of expansion.
and with largend good partnerships,l value in the years to
ngthening financiallows and a largeready for the next
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Rapat PWhat iWhat i impinan 2007Antam?Antam?
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Got Three Minutes? CGot Three Minutes? C Diversified. VerticallyIntegrated. Ind
Gold. Nickel. Bauxite. A great mix.
Large quality reserves and resources.
Low cost operations.
Unique position to lower costs.
Industrybeating margins and returns
Possible ferronickel production incre
Exciting project pipeline.
Targeted gold acquisition program
Big dividends, lots of cash and strong
investments
nsider:nsider:onesian. Experienced.
.
se over next few years.
financial positions to make
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How Antam Makes ItsHow Antam Makes ItsHow Antam Makes ItsHow Antam Makes Its
Profitably exploring, discovering,refining mineral deposits and theas we have been doing for four d
locate and add to our vast res
develop those deposits with a
value construct and operate sustain
develop longterm relationshi
Operate according to principlGovernance (GCG)
prudent financial managemen
MoneyMoneyMoneyMoney
excavating, processing andselling them around the world
cades
rves and resources
view to extracting maximum
ble processing facilities
s with world class customers
s of Good Corporate
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How Antam Makes ItsHow Antam Makes ItsHow Antam Makes ItsHow Antam Makes Its MoneyMoneyMoneyMoney
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Our StrategyOur StrategyOur StrategyOur Strategy We will create maximum sharehol
diversify horizontally into oth
focus on those commodities wgold and bauxite.
diversify through an active exstrategic acquisitions
maintain a diversity of custom
diversify vertically by moving d
focus on mines and deposits i
seek international partnerships
companies
engage the rise of China
be a low cost operator and hol
resources
not overly burden our balance
prudent approach to making in
a return of at least 15%
der value by:
r commodities where suitable
e know best, which are nickel,
loration program and through
rs
ownstream.
Indonesia
with world class mining
er of large reserves and
sheet
estments, which must generate
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Antams activities are vertically integrated fAntams activities are vertically integrated fdevelopment, mining, refining and processindevelopment, mining, refining and processin
VerticallyVertically--Integrated, DIntegrated, D
Operational Project
CGA Taya(Bau
(
Logam Mulia(Precious Metals
Refinery and
Processing)
Kijang(Bauxite)
Pongkor(Gold)
Geomin(Exploration Unit)
om exploration,om exploration,and marketingand marketing
iversifiediversified
n Projectite)
PomalaaFerronickel and
Nickel Ore)
Gee(Nickel Ore)
Tanjung Buli(Nickel Ore)
Mornopo(Nickel Ore)
PearlFeNi IVProject(Nickel)
PearlHydromet
Project(Nickel)
Stainless Steel withTsingshan Project
(Nickel)
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PT Dairi Prima Minerals
(Base Metals) 20%
PT Sorikmas Mining(Gold) 25%
PT Galuh Cempaka(Diamond) 20%
PT Pelsart Tambang K
(Gold) 15%
PT CibaliungSumberDaya
(Gold) 10.25%
PT StraitsConsultancy
(Gold) TBD
PTTim
(G
Minority Joint VenturesMinority Joint Ventures
PT Nusa HalmaheraMinerals
(Gold) 17.5%
PT Weda BayNickel
(Nickel) 10%
encana
PT GagNickel
(Nickel) 25%
T GorontaloMinerals
(Gold) 20%
umbawaur Miningold) 20%
Blue SkyBlue Sky
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What it All Boils DowWhat it All Boils DowResources and ReserResources and Reser
to:to: Our LargeOur Largeeses
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600566
402
22221892
62 147 1960
500
1000
1500
2000
2500
3000
1Q03 1Q04 1Q05
Sales Operating
(Rp Billion)
QuarterlyQuarterly IncomeIncome
** Results are unauditedResults are unaudited
2092
2386
563
937
1425
148
675
131
1073
1Q06 1Q07 1Q08
Profit Net Profit
Significant and ConsiSignificant and Consi
tenttent AnnualAnnual IncomeIncome
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28592139
17711097
448247
177 227810
0
2000
4000
6000
8000
10000
12000
14000
2002 2003 2004
Sales Operating
(Rp Billion)
Significant and ConsiSignificant and Consiand Margin Growthand Margin Growth
12008
5629
3251
6796
2404
1100
5132
842
1553
2005 2006 2007
Profit Net Profit
tenttent AnnualAnnual IncomeIncome
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First Quarter 08First Quarter 08 PerfPerf
Description
Sales
COGS
Operating Income
Net Income
Net Margin
Assets
CashTotal LT Debt
Long Term Debt / Assets
** Results are unauditedResults are unaudited
(Rp Billion)
rmancermance
Q07 1Q08Comparison
(%)
2,386 2,092 -12
884 1,061 20
1,425 937 -34
1,073 675 -37
45% 32% -29
8,178 12,004 47
2,095 4,568 118
891 685 -23
8.4% 5.7% -32
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Solid AnnualSolid Annual PerforPerfor
Description
Sales
COGS
Operating Income
Net Income
Net Margin
Assets
CashTotal LT Debt
Long Term Debt / Assets
(Rp Billion)
anceance
006 2007Comparison
(%)
5,629 12,008 113%
2,888 4,795 66%
2,404 6,796 183%
1,553 5,132 230%
28% 43% 54%
7,291 12,038 75%
1,194 4,744 297%
1,070 700 -35%
15% 6% -60%
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FeNi IIIFeNi III Holding StabHolding Stab
FeNi III is currently running
Rather than a complete rthe design we have
The repairs were covered u Big leap in size and new c
get used to
However, no bells or alarm Every new furnace leaks.
problems are over.
lele
at 32MW
design we seek to optimalize
nder warranty.ooling system require time to
went off at time of leak.We hope FeNi III teething
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Low Cost OperationsLow Cost Operations except FeNiexcept FeNi
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Low Cost OperationsLow Cost Operations
2007 Nickel Industry C
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
0 200 400 600 800 1000 1200 1400
Producti
C1Cas
h
Cos
t($/lb
Ni)
except FeNiexcept FeNi
st Curve (2007$)
PTAneka-
Pomaal
1600 1800 2000 2200 2400 2600 2800 3000
n (kt Ni)
Copyright Brook Hunt 2008
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Rapat PHistoriHistori impinan 2007al Antamal Antam
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Industry Beating MargIndustry Beating MargIndustry Beating MargIndustry Beating Marg
Source: PWC mineIndonesia 2006
Antams net profit margin was 43% in full yeAntams net profit margin was 43% in full ye
ns and Returnsns and Returnsns and Returnsns and Returns
r 2007r 2007
V P Hi t i l RV P Hi t i l R E B ttE B tt
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Vs Peers: Historical RVs Peers: Historical R E BetterE Better
V P Hi t i l RV P Hi t i l R E B ttE B tt
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Vs Peers: Historical RVs Peers: Historical R E BetterE Better
Vs Peers: Historical RVs Peers: Historical R E BetterE Better
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Vs Peers: Historical RVs Peers: Historical R E BetterE Better
Vs Peers: Historical RVs Peers: Historical R E BetterE Better
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Vs Peers: Historical RVs Peers: Historical R E BetterE Better
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Rapat PFutureFuture impinan 2007AntamAntam
P d ti d SP d ti d S
l O tl kl O tl k
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Production and SaProduction and Sa
In order to maintain safetyAntam currently operat
megawatts. Antam targets 2008 product
contained in ferronickel. In 2008, depending on
expects nickel ore producti
and sales to reach 5.8 millio Antam target 2008 gold pr
troy oz) and 20,703 kg (665,
les Outlookles Outlook
and prevent further leakages,s the smelter at 3032
ion of 17,000 tonnes of nickel
emand from China, Antamon to reach 6.25 million wmt
n tonnes.duction of 2,980 kg (95,809
617 troy oz) of silver.
Sources of FutureSources of Future
rowthrowth
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Sources of FutureSources of Future1 Indonesia Chemical Alumina (ICA)
ownership) 300,000 tonnes per annum of CG Location: Tayan, West Kalimant +US$350 million ICA established in February 2007 To maximize value of large baux Attractive IRR expectation remai Current progress: selecting EPC
2 Pearl Project Alliance with BHP BilA. Feni IV
30,000 tonnes or more per annu Operation Target: 2012 Location: North Maluku Current progress: JVA negotiatio
B. Hydromet +60,000 tonnes per annum of nic Product: nickel (plus cobalt) as i Location: North Maluku Current progress: negotiations a
rowthrowth(Antam 49%, with an option to increase
A27n
ite reservesns despite rising cost forecastsnd financing
liton
of nickel in ferronickel
n and studies
kelntermediate products
d studies. BFS Target: 2012
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Sources of FutureSources of Future
rowthrowth
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Sources of FutureSources of Future6SGA Mempawah with Hangzhou (Ant
1,000,000 tpa of Smelter Grad
US$800US1 billion Location: West Kalimantan Current progress: JVA, Feasibi
7 SGA Munggu Pasir with Rusal (Anta 1,200,000 tpa of Smelter Grad
US$US1.2US$1.5 billion Location: West Kalimantan Agreement signed in Septemb Current progress: JVA, Feasibi
rowthrowtham 55%)e Alumina
lity studies
49%)e Alumina
r 2007lity studies
Sources of FutureSources of Future
rowthrowth
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Sources of FutureSources of Future8. Acquisition of Herald Resources/
Antam/Zhongjin made takeove
share on January 29, 2008 Higher valuation then other biexperienced partner, Zhongjin
Zhongjin, at its mine in Southegreater depths and lower grad
The Ministry of StateOwned Eis fully supportive of this bid.
This move increases the diversivalue for our shareholders.
9. Gold Acquisition To replenish dwindling gold
Logam Mulia, natural hedge to Location: Indonesian archipela Current progress: Due diligen
identified from shortlist in 200
rowthrowthPT Dairi Prima (lead/zinc):r bid made for Herald, A$2.50 per
justified due to introduction of
n China, operates a low cost mine ats than is planned for the Dairi projectterprises, which owns 65% of Antam,
ty of our assets and will create good
reserves, operational synergies withdollar/oil exposure/nickel volatilityo/Neighbouring Regione and advice by Macquarie. Targets
Energy ConversionEnergy Conversion
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Energy ConversionEnergy Conversion
Lake PosoLake Poso
PoPo
SSengkangengkang
KalimantanKalimantan
ENERGY CONVERSION ALTERNATIVES:1. Coal
Pre feasibility study completed onuse of SPLC (Smart Predictive LineControl) technology to reduce loadfluctuation.
Coal Source: Kalimantan
IPP (Power Plant, Transmission)
2. Hydro
3. Natural Gas
Target: Decision by 2008 and
conversion by 2010
TangguhTangguh
alaaalaa
Mornopo,Mornopo,
Tg Buli,Tg Buli,GeeGee
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Rapat PThe BiThe Bi impinan 2007PicturePicture
Big Picture Items:Big Picture Items:
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Big Picture Items:Big Picture Items:
Regulatory and Investment Climat Cautious Optimism
Mining Law will it or wont it get Possible upside for Antam as w Debate ongoing regarding the
after law is passed
Ore Exports will they or wont th Possible upside for Antam
Improving
passed.ll as Industrytransition period of 35 years
y be banned out of Indonesia.
Commodities Outlook: NiCommodities Outlook: Ni kel and Goldkel and Gold
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Commodities Outlook: NiCommodities Outlook: Ni
Nickel:
Supply side remains tight with underi
Historically nickel is still strong and tsubstitution.
Gold:
Positive drivers for gold remains withrisk, and continuing growth in invest
Nickel Supply vs. ConsumptionNickel Supply vs. Consumption
S
Source: Brookhunt, Antams Annual Report 2006
kel and Goldkel and Gold
2007 2008E 2009E 2010E
Nickel (US$/lb)Nickel (US$/lb) 16.9 14.8 12.0 7.5
Gold (US$/toz)Gold (US$/toz) 684 750 800 820
nvestment in mines and smelters;
e cooling off has reduced the threat of
weaker US$, heightened geopoliticalent demand.
Commodity Price OutlookCommodity Price Outlook
ource: Brookhunt, Citigroup
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O K MO K M
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Our Key MessageOur Key Message
We are poised for growtreserves and resources awe will create substanticome.
We have a strong and str
structure, healthy cash fproject pipeline, we arestage of expansion.
and with largend good partnerships,l value in the years to
ngthening financial
lows and a largeready for the next
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Tha
ny
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nk You
uestion ?
www.antam.com