Forming a subsidiary, Aneka Tambang (ANTM) will IPO the Logam Mulia business

ILLUSTRATION. Aneka Tambang will form a special subsidiary that manages the precious metal business, which will then be encouraged for an IPO.

Reporter: Ridwan Nanda Mulyana | Editor: Khomarul Hidayat

KONTAN.CO.ID – JAKARTA. PT Aneka Tambang Tbk (ANTM) is carrying out a transformation in the downstream and gold retail business. The state-owned mineral company will form a special subsidiary to manage the precious metal business, which will then be encouraged to take the floor on the stock exchange through initial public offering (IPO).

General Manager of the Geomin & Technology Development Unit of ANTM, Tri Hartono, said that with a growing market now, the precious metal line must be more flexible and independently manage its own business. For that, ANTM formed a transformation team and finalized the formation of a precious metal subsidiary.

“We are currently working on the process of precious metals to become a subsidiary. We have a gold transformation team at Antam. The preparation process is like that, the precious metals must be flexible in the future, the market is there, it’s good,” Tri said in a media workshop held by MIND ID online, Thursday (22/10).

Also Read: During the third quarter of 2020, Aneka Tambang (ANTM) sold 6,967 kg of gold

Once independent as a subsidiary, precious metals will also be encouraged to list initial shares or IPO. However, it remains unclear regarding a more detailed schedule and plan for the IPO.

“We have plans for the future, we have an IPO of precious metals. We are developing precious metals because we already have a strong enough brand,” said Tri.

What is certain is that sales of gold and precious metals have become one of Antam’s pillars in generating revenue. In the first semester of 2020, gold became the largest contributor, reaching Rp. 6.41 trillion or 69% of ANTM’s total revenue. Currently, gold retail ANTM is managed by the Precious Metal Processing and Refinery Business Unit (UBPP LM).

In the latest ANTM report, in the third quarter of 2020, the cumulative performance of ANTM gold sales anaudited was recorded at 14,882 kg (478,467 t oz). On a quarterly basis, ANTM gold sales grew positively by 147%, driven by the growing level of public awareness of gold investment, in line with the rising trend in prices.