PT Aneka Tambang Tbk (ANTM) plans to take advantage of the domestic market to increase revenue this year.

"We will take advantage of the domestic market for the sale of domestic nickel ore and bauxite at the MRP (Mineral Reference Price) price which has been adjusted and is open in 2021. The domestic market is still open for marketing gold and silver compared to the export market with smaller margins," Antam management said in the 2020 annual report, quoted on Wednesday (17/3).

Thus, Antam is striving to reach the maximum possible production level close to Ferronickel's design capacity to 27,000 tons and stable at 27,000 tons this year, and gold trading to be raised again from 18,000 kg of gold this year.

The reserves of high-grade gold ore are running low, so that gold production in the Pongkor Gold Mining Business Unit (UBPE) will be limited. Therefore, Antam must obtain new reserves.

At the end of December 2020, commodity prices showed growth such as ferronickel at US$6.60 per pound, nickel ore prices at US$40.28 per wmt, gold prices US$1,976 / t.oz, silver prices US$24.39 per t .oz, and bauxite US$23.80 / wmt. Therefore, Antam's board of directors is encouraged to take advantage of the momentum of this increase.

"Antam must strive for the momentum that gives positive contribution to the corporation as well as possible for ANTAM, such as production must meet the target, sales of domestic nickel ore with adjusted metal MRP is a good opportunity. Also more profitable domestic gold sales as the margin is bigger than the export gold. And,  the opportunity to use as much as the export quota obtained for sales of bauxite," he explained.

Antam's annual report noted that China is still the main destination for the world's nickel market and the only country whose economy has recovered after the COVID-19 outbreak, which is involved in an increase in the trend of nickel-based stainless steel production by 2.6% monthly. 2020. This will have an impact on both the price and demand for ferronickel throughout this year.

The sentiment came from the uncertainty over the end of the COVID-19 pandemic led to volatility in the gold price. Also, the issue of the second wave in Europe has clouded equities, resulting in a surge in demand for gold as a safe-haven asset.