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20240212_INCO_Laporan Informasi dan Fakta Material_31577050_lamp1.pdf
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Page 1
A remarkable year for PT Vale
Jakarta, February 10th, 2024 – PT Vale Indonesia Tbk (“PT Vale” or the “Company”, IDX Ticker:
INCO) and its subsidiaries (jointly referred to as the “Group”) today announced its audited results for
2023. The Company’s earnings for the year were US$274.3 million, marking a 37% from the earnings
recorded in 2022.
“2023 was a remarkable year for PT Vale on many fronts,” said Febriany Eddy, CEO and President
Director of the Company. “We continued to deliver our promises, recording an 18% increase in
production and strong EBITDA of US$499.6 million. Despite facing an unfavourable market situation,
our operational and financial discipline led to strong financial outcomes. We also recorded an
unrestricted cash balance to US$698.8 million at the end of the year. We are investing. Our strong
cash balance will allow us to continue to make good progress on our growth projects. These strong
results are supported by improvements in our safety performance, our Total Recordable Injury
Frequency Rate (TRIFR) decreased from 0.64 last year to 0.31, and we received a Green PROPER
(beyond compliance) environmental rating from the Government, for the fourth time.”
“2023 was also a historic year. In late March, President Joko Widodo graced Sorowako with his
presence to inaugurate our Sawerigading Wallacea Biodiversity Park – the last Presidential visit took
place 45 years ago. In his remarks, the President praised our operation as a benchmark for other
nickel mining companies to follow. During this visit, the President also witnessed the signing of
definitive cooperation agreements between PT Vale, Huayou Zhejiang Cobalt (“Huayou”), and Ford
Motor Company (“Ford”). In mid-November, PT Vale, together with its major shareholders, which were
Vale Canada Limited (“VCL”), PT Mineral Industri Indonesia (Persero) (“MIND ID”), and Sumitomo
Metal Mining Co., Ltd (“SMM”), accomplished a significant milestone with the signing of a Heads of
Agreement, a crucial step towards fulfilling the Company's divestment obligations under Indonesian
mining law, which also a prerequisite in getting the extension of our license to operate.”
PT Vale’s production in 2023 reached 70,728 metric tons (“t”) of nickel in matte, an 18% increase
from 2022 production, as a result of the successful execution of its maintenance strategy throughout
the year. The production in the fourth quarter of 2023 (“4Q23”) was 19,084 t, the highest since 4Q21.
Sales volume in 2023 increased by 17% compared to 2022 and by 20% quarter over quarter (4Q23
vs 3Q23). Despite a lower average realized price in 2023, the Company managed to maintain
production costs at US$10,089 per t in 2023, resulting in an 11% increase in gross profit for the year.
This production cost has decreased by 12% to US$10,089 per t, compared to the previous year at
US$11,444 per t. This reduction is attributed to lower energy cost and various productivity
improvement initiatives.
[ 1 ]
PT Vale Indonesia Tbk
Jakarta: Sequis Tower, 20th Floor, Unit 6 & 7, Jl. Jend. Sudirman Kav. 71, Jakarta 12190, Indonesia. T (62) 21 524 9000 F.(62) 21 524 9020
Makassar: Jl. Somba Opu No. 281, Makassar 90113, Indonesia. T.(62) 411 366 9000 F.(62) 411 366 9020
Sorowako: Main Office Plant Site Sorowako, Luwu Timur 92984, Indonesia. T.(62) 475 332 9100 F.(62) 475 332 9575
www.vale.com/indonesia
Page 2
The following table provides details on PT Vale’s High Sulphur Fuel Oil (“HSFO”), diesel and coal
consumption and average price:
4Q23 3Q23 2023 2022
HSFO volume (barrels) 396,234 337,351 1,654,993 1,467,781
HSFO average price per barrel US$90.93 US$85.60 US$83.01 US$85.72
Diesel volume (kilolitres) 19,435 17,109 68,029 58,245
Diesel average price per litre US$0.90 US$0.86 US$0.92 US$0.87
Coal volume (t) 100,789 121,464 385,707 292,341
Coal average price per t (*) US$198.01 US$223.48 US$263.82 US$328.11
(*) Price in WMT (Wet Metric Ton) and CFR (Cost & Freight) basis
In 4Q23, HSFO consumption increased by 17% compared to the previous quarter, counterbalancing
the 17% decrease in coal consumption as the Company transitioned from coal to HSFO as the energy
sources from November to December 2023 due to maintenance activities at our coal mill. Except for
coal, the average price of HSFO and diesel in 4Q23 increased by 6% and 5% respectively compared
to the previous quarter.
The Company’s cash and cash equivalent as of December 31, 2023 and December 31, 2022 were
US$698.8 million and US$634.0 million respectively. During the year, the Company disbursed
approximately US$286.3 million in capital expenditures, a 31% increased from 2022, primarily due to
growth capital.
The Future of PT Vale
PT Vale has made meaningful progress in its growth projects in Bahodopi and Sambalagi (known as
Morowali project), Pomalaa, and Sorowako.
For the Morowali project, we have recently secured new AMDAL for both the mine di Bahodopi and
Sambalagi industrial park. The pace of land acquisition for the mining area has notably accelerated,
enabling us to make meaningful progress in mining construction, and we are now advancing into the
construction of the port for ore transportation. Similarly, the early works for the construction of the
plant in Sambalagi have been progressing adequately, and we are progressing with EPC contracting
for the construction of the plant and its supporting infrastructure.
For the Pomalaa Project, we are progressing with the early construction works of the mine, while we
are finalizing the EPC tender for the construction of the Pomalaa mine. Subsequent to the signing of
the three-party agreements between PT Vale, Huayou, and Ford, which was directly witnessed by
President Joko Widodo earlier last year, we are delighted to share that Ford has officially joined as a
shareholder of PT Kolaka Nickel Indonesia (“PT KNI”), the joint venture company established to
construct and operate the HPAL plant in Pomalaa.
The third investment program in our growth agenda is the Sorowako Project. We have signed a
definitive cooperation agreement with Huayou for the construction of the HPAL facility in East Luwu.
Currently, Huayou is working on obtaining all the necessary permits.
[ 2 ]
PT Vale Indonesia Tbk
Jakarta: Sequis Tower, 20th Floor, Unit 6 & 7, Jl. Jend. Sudirman Kav. 71, Jakarta 12190, Indonesia. T.(62) 21 524 9000 F.(62) 21 524 9020
Makassar: Jl. Somba Opu No. 281, Makassar 90113, Indonesia. T.(62) 411 366 9000 F.(62) 411 366 9020
Sorowako: Main Office Plant Site Sorowako, Luwu Timur 92984, Indonesia. T.(62) 475 332 9100 F.(62) 475 332 9575
www.vale.com/indonesia
Page 3
The Company is committed to enhancing the participation of local workers in surrounding our
operations and business activities, including our growth projects. As of December 31, 2023, our
growth projects employ 98.6% Indonesian and 67.6% local workers. In overall, PT Vale employs
99.9% Indonesian and 85.6% local workers, with 10.2% of them being female workers – the highest
gender participation in our workforce that we have ever achieved.
We have accomplished a lot in 2023, and we have even more to accomplish in 2024. Our focus
remains on delivering our growth projects on schedule, within budget, and in line with the approved
scope. With the increase in growth projects activities, the role of Sorowako operation as the backbone
of the Company will become increasingly important and visible. We will continue to improve our
operational discipline in Sorowako operation to deliver stronger results. We believe ESG as integral
part of who we are, and in everything we do, we will strive to deliver better ESG performance. We
always remind ourselves of our foremost values: Life Matters Most, Respect Our Planet and
Communities.
Readers are encouraged to review the Company’s results. Operational achievements and audited
financial results are summarized on the following pages – all figures are in US$ except for nickel in
matte production and deliveries which are in metric tons.
For further information, please contact:
Bernardus Irmanto, Chief Financial Officer
ptvi.investorrelation@vale.com
visit our website at
www.vale.com/indonesia
or call us at
(+62-21) 524 9000
[ 3 ]
PT Vale Indonesia Tbk
Jakarta: Sequis Tower, 20th Floor, Unit 6 & 7, Jl. Jend. Sudirman Kav. 71, Jakarta 12190, Indonesia. T.(62) 21 524 9000 F.(62) 21 524 9020
Makassar: Jl. Somba Opu No. 281, Makassar 90113, Indonesia. T.(62) 411 366 9000 F.(62) 411 366 9020
Sorowako: Main Office Plant Site Sorowako, Luwu Timur 92984, Indonesia. T.(62) 475 332 9100 F.(62) 475 332 9575
www.vale.com/indonesia
Page 4
PT Vale Indonesia Tbk
Production and Financial Highlights
4Q23 3Q23 2023 2022
Nickel in matte production1 19,084 17,953 70,728 60,090
Nickel matte deliveries1 20,673 17,214 71,108 60,960
Average realized price2 14,239 16,204 17,329 19,348
EBITDA3 98.5 104.5 499.6 477.0
Revenue3 294.4 278.9 1,232.3 1,179.4
Profit3 53.2 52.6 274.3 200.4
Earnings per share4 0.0054 0.0053 0.0276 0.0202
1
metric ton (t)
2
US$ per t
3
US$ million
4
US$
[ 4 ]
PT Vale Indonesia Tbk
Jakarta: Sequis Tower, 20th Floor, Unit 6 & 7, Jl. Jend. Sudirman Kav. 71, Jakarta 12190, Indonesia. T.(62) 21 524 9000 F.(62) 21 524 9020
Makassar: Jl. Somba Opu No. 281, Makassar 90113, Indonesia. T.(62) 411 366 9000 F.(62) 411 366 9020
Sorowako: Main Office Plant Site Sorowako, Luwu Timur 92984, Indonesia. T.(62) 475 332 9100 F.(62) 475 332 9575
www.vale.com/indonesia
Page 5
PT Vale Indonesia Tbk and its subsidiaries
Consolidated Statements of Profit or Loss
and Other Comprehensive Income
(In thousands of US$ except basic earnings per share)
4Q23 3Q23 2023 2022
Revenue 294,367 278,929 1,232,263 1,179,452
Cost of revenue (234,249) (212,499) (885,240) (865,885)
Gross profit 60,118 66,430 347,023 313,567
Operating expenses (6,240) (5,001) (22,155) (19,734)
Other income 490 108 823 1,289
Other expenses (10,220) (2,117) (23,533) (23,093)
Operating profit 44,148 59,420 302,158 272,029
Share in net profit from associate 3 18 21 -
Gain on recognition of fair value of
derivative asset 24,690 - 24,690 -
Finance income 10,064 9,414 35,753 10,691
Finance costs (6,138) (1,326) (10,099) (6,901)
Profit before income tax 72,767 67,526 352,523 275,819
Income tax expense (19,519) (14,956) (78,189) (75,418)
Profit for the period 53,248 52,570 274,334 200,401
Other comprehensive loss
Items that will not be reclassified to
profit or loss:
− Changes resulting from actuarial
remeasurement of post-
employment benefit liabilities (5,701) - (5,701) (105)
− Income tax on other
comprehensive income 1,254 - 1,254 23
Total other comprehensive
loss (4,447) - (4,447) (82)
Total comprehensive
income for the period 48,801 52,570 269,887 200,319
Profit for the period
attributable to:
Owners of the parent entity 53,248 52,570 274,334 200,401
Non-controlling interest - - - -
53,248 52,570 274,334 200,401
Total comprehensive income for
the period attributable to:
Owners of the parent entity 48,801 52,570 269,887 200,319
Non-controlling interest - - - -
48,801 52,570 269,887 200,319
Earnings per share
- Basic and diluted
(in full amount of US Dollars) 0.0054 0.0053 0.0276 0.0202
[ 5 ]
PT Vale Indonesia Tbk
Jakarta: Sequis Tower, 20th Floor, Unit 6 & 7, Jl. Jend. Sudirman Kav. 71, Jakarta 12190, Indonesia. T (62) 21 524 9000 F.(62) 21 524 9020
Makassar: Jl. Somba Opu No. 281, Makassar 90113, Indonesia. T.(62) 411 366 9000 F.(62) 411 366 9020
Sorowako: Main Office Plant Site Sorowako, Luwu Timur 92984, Indonesia. T.(62) 475 332 9100 F.(62) 475 332 9575
www.vale.com/indonesia
Page 6
PT Vale Indonesia Tbk and its subsidiaries
Consolidated Statements of Financial Position
(In thousands of US$)
December 31, September 30, December 31,
2023 2023 2022
Assets (Audited) (Unaudited) (Audited)
Cash and cash equivalents 698,795 768,371 634,042
Trade receivables - Related parties 101,813 100,840 141,377
Inventories 155,946 172,381 155,753
Prepaid taxes – Other taxes 64,599 47,639 48,723
Prepayments and advances 6,056 4,332 4,444
Other current financial assets 5,910 6,379 5,463
Total current assets 1,033,119 1,099,942 989,802
Restricted cash 103,857 103,088 73,044
Prepaid taxes - Corporate income tax 15,015 11,084 10,933
- Other taxes 36,498 28,045 30,869
Investments in associate 12,410 12,378 -
Derivative assets 24,690 - -
Fixed assets 1,695,531 1,605,203 1,549,857
Other non-current financial assets 4,879 2,897 3,611
Total non-current assets 1,892,880 1,762,695 1,668,314
Total assets 2,925,999 2,862,637 2,658,116
Liabilities and Equity
Trade payables - Related parties 312 80 298
- Third parties 140,515 133,451 115,296
Accruals 33,843 35,528 27,772
Short-term employee benefit liabilities 25,070 19,735 26,244
Taxes payable – Corporate income tax - 20,347 -
– Other taxes 2,821 1,605 2,407
Lease liabilities 5,543 5,963 1,816
Share-based payment liabilities 110 51 467
Provision for asset retirement 6,422 - -
Other current financial liabilities 2,091 4,261 739
Total current liabilities 216,727 221,021 175,039
Long-term post-employment benefit
liabilities 39,695 30,704 28,457
Deferred tax liabilities 19,603 17,625 24,891
Lease liabilities 3,078 3,173 3,918
Provision for asset retirement 77,482 74,454 71,031
Other non-current financial liabilities 4,877 - -
Total non-current liabilities 144,735 125,956 128,297
Total liabilities 361,462 346,977 303,336
Equity 2,564,537 2,515,660 2,354,780
Total liabilities and equity 2,925,999 2,862,637 2,658,116
[ 6 ]
PT Vale Indonesia Tbk
Jakarta: Sequis Tower, 20th Floor, Unit 6 & 7, Jl. Jend. Sudirman Kav. 71, Jakarta 12190, Indonesia. T.(62) 21 524 9000 F.(62) 21 524 9020
Makassar: Jl. Somba Opu No. 281, Makassar 90113, Indonesia. T.(62) 411 366 9000 F.(62) 411 366 9020
Sorowako: Main Office Plant Site Sorowako, Luwu Timur 92984, Indonesia. T.(62) 475 332 9100 F.(62) 475 332 9575
www.vale.com/indonesia
Page 7
PT Vale Indonesia Tbk and its subsidiaries
Consolidated Statements of Cash Flows
(In thousands of US$)
4Q23 3Q23 2023 2022
Cash flows from operating activities
Receipts from customers 293,394 270,167 1,271,827 1,140,062
Payments to suppliers (152,786) (142,074) (594,852) (553,963)
Payments of corporate income tax (40,559) (21,834) (91,618) (80,181)
Payments of other taxes (38,852) (15,330) (84,609) (66,856)
Receipts of tax refunds (1,125) 48,320 69,078 83,302
Payments to employees (4,091) (20,814) (85,269) (88,429)
Placement of financial guarantee (769) - (30,813) (23,175)
Receipts of finance income 10,064 9,414 35,753 10,691
Payments of royalties and levies (18,668) (14,146) (68,339) (73,293)
Net cash flows provided by operating
46,608 113,703 421,158 348,158
activities
Cash flows from investing activities
Payments for acquisition of fixed assets (103,605) (65,736) (286,262) (218,782)
Proceeds from disposal of fixed assets (2,062) 2,672 610 715
Net cash flow decrease from loss of
control of a subsidiary (165) - (165) -
Net cash flows used in investing activities (105,832) (63,064) (285,817) (218,067)
Cash flows from financing activities
Payments of dividends (789) - (60,093) -
Payments of lease liabilities (3,592) (455) (5,003) (1,362)
Payments of finance costs (115) (162) (345) (116)
Net cash flows used in financing activities (4,496) (617) (65,441) (1,478)
(63,720) 50,022 69,900 128,613
Net increase in cash and cash equivalents
Cash and cash equivalents at the 768,371 719,881 634,042 508,327
beginning of the period
Effect of exchange rate changes on cash (5,856) (1,532) (5,147) (2,898)
and cash equivalents
Cash and cash equivalents at the end of the 698,795 768,371 698,795 634,042
period
[ 7 ]
PT Vale Indonesia Tbk
Jakarta: Sequis Tower, 20th Floor, Unit 6 & 7, Jl. Jend. Sudirman Kav. 71, Jakarta 12190, Indonesia. T.(62) 21 524 9000 F.(62) 21 524 9020
Makassar: Jl. Somba Opu No. 281, Makassar 90113, Indonesia. T.(62) 411 366 9000 F.(62) 411 366 9020
Sorowako: Main Office Plant Site Sorowako, Luwu Timur 92984, Indonesia. T.(62) 475 332 9100 F.(62) 475 332 9575
www.vale.com/indonesia
Names mentioned 10 people and organisations named in the text · linked when the evidence is strong
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PT Vale’s
p.1
unresolved
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PT Vale’s High Sulphur Fuel Oil
p.2
unresolved
org
PT Kolaka Nickel Indonesia
p.2
unresolved
org
PT KNI
p.2
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