Aneka Tambang Persero Tbk PT : ANTAM Records Net Profit in the First Half of 2016 as the Company Places Optimisation of Operational Performance as Main Priority

Jakarta, August 31, 2016 - PT ANTAM (Persero) Tbk (IDX: ANTM; ASX: ATM; ANTAM) is pleased to announce that in the first half of 2016 (1H16) the Company records Rp11 billion of profit for the period attributable to owners of the parent. ANTAM's 1H16 financial results are impressive performance compared to Rp396 billion of loss for the period attributable to owners of the parent in the first semester of 2015 (1H15).

ANTAM's President Director, Tedy Badrujaman said,
' Amidst the volatility of commodity prices in 1H16, we implement the optimisation of operational performance and innovation on key cash generating initiatives to maintain a healthy cash flow. We also place cost savings programs as our main priority. Inline with the recent commodity prices rally, we are confident that our performance will remain solid and the Company will deliver solid profitability and returns to the investors this year.'

In 1H16, ANTAM's net sales reached Rp4.16 trillion with gold as the biggest contributor. Gold sales amounted to 68% of total net sales, or equal to Rp2.84 trillion. Ferronickel was the second largest revenue contributor, amounted to Rp950 billion, or 23% of total net sales. ANTAM's gold sales in 1H16 amounted to 5,392 kg, whilst ferronickel sales volume reached 8,092 tons of nickel contained in ferronickel (TNi).

In 1H16, in line with the development of national smelter industries and domestic demand growth for nickel ore, ANTAM commenced nickel ore sales to domestic third party nickel smelters.

ANTAM expects its nickel ore production and sales to meet domestic demand will increase in the future. As the Company's nickel ore production and sales increase, ANTAM anticipates its nickel ore prices will be more competitive and provide benefits to domestic smelters.

Based on the Competent Person Report as of December 31, 2015, ANTAM's nickel reserves and resources amounted to 988.30 million wet metric ton (wmt). ANTAM's total reserves and resources of nickel ore is able to support the Company's business development plan and sustain long term operations. As well, ANTAM's vast nickel deposit can meet demand from domestic nickel smelters.

In the gold business, ANTAM's largest business segment, the Company is currently exploring several opportunities to expand its gold business to increase revenue. New promising markets include Malaysia, Singapore, United Arab Emirates and several African countries.

In relation to the ANTAM's development projects, in 1H16 the construction of the Haltim Ferronickel Plant Development Project (P3FH) remained on track following the success of the company's rights issue at the end of 2015. Meanwhile, the EPC progress of ANTAM's Pomalaa Ferronickel Plant Expansion Project (P3FP) reached 99.69% at the end of June 2016 with expected completion in 2016. P3FP will increase ANTAM's annual ferronickel production capacity from 18,000-20,000 TNi to 27,000-30,000 TNi.

In relation to the Smelter Grade Alumina Refinery (SGAR) project, ANTAM continued discussion with PT INALUM (Persero) and a strategic partner. ANTAM and PT INALUM (Persero) had agreed to form a joint venture company, PT INALUM ANTAM ALUMINA to develop the SGAR project. Meanwhile, in the Anode Slime & Precious Metal Refinery (PMR) project, ANTAM continued discussion with PT Freeport Indonesia and PT Smelting.