HRUM’s Second Nickel Smelter to Operate in March

PT Harum Energy Tbk (HRUM) is focusing on the nickel business. For the record, through its subsidiary, PT Harum Nickel Industry (HNI), HRUM purchased shares owned by Prime Investment Capital Limited and Walsin Singapore Pte. Ltd. in PT Westrong Metal Industry (WMI) last January.

Harum Nickel Industry purchased 1,214,000 shares, representing 60.7% of the issued and paid-up capital of Westrong Metal Industry. The value of this share purchase transaction reached USD 215.21 million.

With the completion of this share purchase transaction, Harum Nickel Industry’s share ownership in Westrong Metal Industry increased from the previous 20% to 80.7% of the issued and paid-up capital.

Harum Energy President Director Ray Antonio Gunara said HRUM is still formulating a nickel production target in 2024. HRUM’s second smelter will only start commercial operations this March.  

“We currently have a consolidated annual installed production capacity of more than 80,000 tons of nickel,” he told Kontan on Thursday (21/3).

According to Ray, the government’s focus on downstream policies is expected to continue to maintain positive sentiment, not only for HRUM’s nickel business line but also for the Indonesian nickel industry in general.

“Given that the nickel sector and its derivative products have become one of the mainstays of Indonesia’s exports,” he said.

Regarding fluctuations in nickel prices, Ray sees the upheaval as short-term.

Launching Trading Economics on Friday (3/22), nickel prices rose 0.99% in the past month. However, nickel prices have corrected by 21.65% over the past year.

According to Ray, this is due to an imbalance in demand and supply.

“However, in the long term, we are optimistic about the prospects for nickel prices, seeing the growth in nickel commodities that continues to increase,” he said.

MNC Sekuritas analyst Herditya Wicaksana said the HRUM stock movement is at the support level of IDR 1,280 per share and resistance of IDR 1,420 per share. Herditya recommended buying on weakness for HRUM with a target price of IDR 1,450 – IDR 1,520 per share.

Kanaka Hita Solvera Equity Analyst William Wibowo sees that the movement of HRUM shares is at the support level of IDR 1,200 per share and resistance of IDR 1,510 per share.

William also recommended buying on weakness for HRUM with a target price of IDR 1,510 per share.

Image source: KONTAN / PT Harum Energy Energi Tbk (HRUM)