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Aneka Tambang (ANTM.JK) – Indonesian nickel and gold producer poised to cash in on EV thematic and onshoring of metals supply chain


In our last episode, we provided a primer on Indonesia’s exciting macroeconomic landscape and discussed recent efforts to establish a full battery and EV supply chain domestically in the mineral-rich country. This episode is a deep-dive into one of the key beneficiaries of this trend, PT Aneka Tambang Tbk (ANTM.JK, ANTM IJ, ATM.AX, ATM AU, “ANTAM”). In our previous episode, we also cited an article by

highlighting that Indonesia is an investible market for international (retail) investors through the right broker. The time of recording was on 17 May 2023.


ANTAM is a state-owned gold and nickel miner in Indonesia, which has the largest nickel deposits in the world. The Company has the largest nickel reserves among its local peers.

ANTAM listed on the Indonesian Stock Exchange (IDX) in 1997, selling 35% of its shares in the process. It also listed its shares on the Australian Stock Exchange (ASX) as a foreign exempt entity in 1999 before abiding it status by the more stringent ASX listing in 2002. The business was initially involved in other minerals including bauxite, coal, mineral sands, but over the past five years the company has largely cleaned up its unprofitable businesses and now mainly focuses on nickel and gold mining.


Podcast version also available on Spotify

For now, ANTAM is primarily a Class-2 nickel producer mining from laterite ore resources, meaning that its output can be used for applications such as stainless-steel alloys, a market which is growing at a healthy 5.3% per annum. However, for EV batteries, which are a hot-topic investment these days, the Company will have to convert its laterite ore resources into Class 1 output. Nickel usage in batteries has grown from approximately 70,000 tonnes in 2017, to 240,000 tonnes by 2023, representing a CAGR of 23% during that period.

To tap into this demand, the Company has already teamed up with major international players CATL (300750.SZ) and LG Energy Solution Ltd. (373220.KS) to establish the high-pressure acid leeching facilities needed to process laterite ore Class 1 output. Prices of Class 1 nickel are bound to increase over time, given the expense and significant lead times required to mine higher purity ores that are more commonly used for Class 1 output (deep earth mining rather than the easier open-pit approach that can be used in mining for Class 2 laterite ore resources).

ANTAM benefits from political developments both domestically and internationally. As noted in our previous episode, the administration of President Joko Widodo has completely upturned Indonesia’s historical ore export model by forcing international producers to set up processing and refining for metals onshore, leading to a meteoric rise in the value of Indonesia’s mineral exports (which accounted for 70% of the massive growth in exports between 2017 and 2021). For nickel specifically, onshore refining is now well-established, and ANTAM benefits by feeding smelters operated by an array of local and foreign operators, aside from the smelters it is working on through the aforementioned JVs. As for gold, which still accounts for the majority of ANTAM’s revenues, we have long been bullish on the commodity as a safe haven asset due to an increasingly fragmented geopolitical scene and hedge on (heightened fears around) recession.


ANTAM has provided the market with production guidance for each segment for FY23e. Based on our own modelling of those figures, we’re expecting ANTAM to grow top line and bottom line by at least 3% and 29% yoy for FY23e. Our numbers sit at top of the range relative to a wide sell-side forecast range. We are quite comfortable with that and even think it’s on the conservative side. Q123 results showed that the business is tracking well, exceeding consensus expectations by over 37% supported by strong nickel and gold production and sales volume.


ANTAM has the highest reserves among its peers. We note that reserves represent concrete estimates of extractable resources, whereas resources are theoretical projections of what new areas may hold.

While the Russian Nickel giant Norilsk does indeed have higher reserves, Russian companies will have a tough time getting their products to international markets due to geopolitical tensions. ANTAM looks relatively cheap compared to peers on an EV/Reserves basis and we expect this discount to close over the next 2 to 3 years through a mixture of macro and micro catalysts.


Our initial target range for ANTAM is between IDR 2,700-3,200 (currently at IDR 1,935). In our bull case, our view is that the stock could double over the next 2-3 years. Factors driving business growth are strong macro and fundamental demand for nickel and gold products, as well as stable to increasing commodity prices. We are seeing surging demand for EV battery materials from manufacturers in China and ASEAN; a flourishing EV supply chain in Indonesia will complement this.

Negative pricing pressures will certainly set the Company back, but we do like the diversified nature of ANTAM. Short term falls in commodities prices, i.e. nickel – can be counteracted in recessionary or unstable macro environment by higher gold prices.

However, we think the Company carries a significant real option value that we have not tried to explicitly estimate, including, but not limited to the JV projects with major foreign players to establish higher grade smelters over the next several years. ANTAM’s potential avenues of growth through material project partnerships from investment and participation drives the real option value of the Company. ANTAM continues to shore up a healthy and well-capitalized balance sheet. We can also still benefit from any increases in its 30% dividend payout policy. It is noteworthy the Company over the course of 26 years (since 1997), only on 5 occasions did not pay a dividend.


For further details on our deep dive on ANTAM, please refer to the video presentation, podcast or slides.

1.24MB ∙ PDF file

Click “Download” for a copy of the full PowerPoint presentation. Video time-stamps available if you want to skip to a specific section of our analysis.

Full disclosure: Both of us, @TheAltraman and @Desertfox do not own the stock as of release of this research presentation/podcast, but intend to.

Disclaimer: This research piece above is for informational, entertainment, educational, and/or study or research purposes only. The information contained herein or discussed does not, should not, and cannot be construed as or relied upon and, for all intents and purposes, does not constitute or provide professional financial, investment, or any other form of advice. This research does not and should not be construed as an offer to sell or the solicitation of an offer to buy any securities or any other financial instruments in any jurisdiction, including where such actions are illegal. This research is not intended for publication in jurisdictions where it would violate laws. The research does not consider individual investment objectives or financial positions and merely expresses the opinions of its authors. Any investment involves taking substantial risks, including (but not limited to) the complete loss of capital. Every investor has different strategies, risk tolerances, and time frames. You are advised to perform your own independent checks, research, or study, and you should consult a licensed professional before making any investment decisions. The assumptions and parameters discussed or used are not the only reasonable ones, and no guarantee is given for their accuracy, completeness, or reasonableness. No promise is made that any indicative performance return will be achieved. The research is derived from public information sourced by Pyramids and Pagodas. No representation or warranty is given for the reliability, completeness, timeliness, accuracy, or fitness of this research, nor is any responsibility or liability accepted for any loss or damage arising in any way (including by reason of negligence) out of errors or misstatements in, omissions from, or the reliance of any person on, here. The authors (Pyramids and Pagodas) shall in no event be held liable to any party for any direct, indirect, punitive, special, incidental, or consequential damages arising directly or indirectly from the use of any of this material.

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