ANTM - increasing ld production

ANTM is targetting ld production to increase by 28% from Pongkor ld Mine throughout 2023 following demand confidence and global ld prices that will continue to rise. (Source: Bisnis Indonesia) Comment: we see this target will remain beneficial to increase its ld revenue amidst potential higher demand and ASP in the face of surging ld global prices. High uncertainty still becomes a trigger on the rise of ld demand due to slowdown global economy and tightening policy. As of 1Q23, ld production reached 26% from FY23 target. However, we are of the view that it results in declined mining life that has seen limited due to lower ld reserves. At the same time, ANTM still continued to explore new potential ld resources and reserves in Pongkor.