CLSA Antam – 1Q10 results – Looking good

• The company posted net profit of Rp202bn in 1Q09, up by 125% YoY though down by 35% QoQ.

• Net profit in 1Q10 was around 19% of our full year estimate, while operating profit has accounted for 27% of full year forecast, hence strong.

• The main drivers for the jump in profits YoY were 1) doubling nickel price to US$9.4/lb, 2) better production for nickel ore and ferronickel, up by 49% YoY and 34% YoY, respectively. These have more than offset lower gold productions, higher energy costs, and appreciating Rupiah year to date.

• We are reviewing our earnings forecast and recommendation for Antam.