ANTM – Strategies to anticipate price fluctuations in 2024

ANTM – Strategies to anticipate price fluctuations in 2024 Aneka Tambang (ANTM) has prepared a number of strategies to deal with the possibility of price fluctuations in gold, nickel, and bauxite for 2024. ANTM is going to maximize its sales for the new regions in the domestic market (areas which are new for ANTM) as the company is also going to focus on cost efficiency and to optimize production by maximizing its washing capacity and quality control. Gold market is expected to see higher demand, yet the global nickel and bauxite could fave an oversupply condition in 2024. The gold market next year is still going to be influenced by the Fed' monetary policy as its moves could cause an increase or decrease in gold prices as a safe heaven investment asset. ANTM expects an increase in the domestic market sales on lower gold prices expectation. Yet, nickel is predicted to continue its bearish trend that has occurred since 3Q23. Moreover, the acceleration of nickel projects in China and Indonesia makes the nickel market to oversupply in 2024, despite a potential increase in stainless steel prices globally. In the midst of these challenges, ANTM will promote nickel ore production and maximize the capacity to transport nickel ore to domestic customers. ANTM expects the bauxite market to be surplus with China as the world's largest consumer and importer of bauxite. In Indonesia, there are various alumina plant construction projects underway with an estimated total production capacity of 8.98 mn tons per year. The growth potential of alumina will increase the demand for bauxite and the selling price of bauxite has not been determined by regulators to date. Note that, ANTM posted an increase in profit of IDR2.84 tn (+8.44% yoy) but experienced a decrease in revenue of 8.26% yoy. (Source : Bisnis Indonesia)