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20231027_INCO_Laporan Informasi dan Fakta Material_31482412_lamp4.pdf
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PT Vale Indonesia Tbk reports third quarter 2023 Earnings of US$52.6 million
and marking another significant milestone for Pomalaa project
Jakarta, October 26th, 2023 – PT Vale Indonesia Tbk ("PT Vale" or the "Company", IDX Ticker:
INCO) and its subsidiaries (referred to as the "Group") have announced their unaudited results for
the third quarter of 2023 ("3Q23").
During 3Q23, PT Vale showcased a strong performance in terms of production, achieving a total of
17,953 metric tons ("t"). This commendable achievement can be attributed to the implementation of
an effective maintenance strategy coupled with exceptional operational performance.
In 3Q23 and the nine-month period of 2023 ("9M23"), PT Vale's average realized price stood at
US$16,204 and US$18,596 per t, respectively, representing a 10% and 6% decline compared to
the average realized price in 2Q23 and 9M22.
Despite the decline in price, the Company achieved a notable 7% increase in sales during 9M23
compared to the same period in the previous year. This growth was primarily driven by higher
volume deliveries of nickel in matte. Consequently, PT Vale's Earnings before interest, taxes,
depreciation and amortization ("EBITDA") totalled US$401.1 million in 9M23, surpassing the
US$382.6 million recorded in 9M22.
The Group's Cost of Revenue throughout the first nine months of 2023 amounted to US$650.9
million, marking a 6% increase when compared to the same period in 2022. The rise in cost can be
primarily attributed to fuel consumption and associated expenses.
The following table provides details of PT Vale’s High Sulphur Fuel Oil (“HSFO”), diesel and coal
consumption and average price:
3Q23 2Q23 9M23 9M22
HSFO volume (barrels) 337,351 363,865 1,258,759 880,724
HSFO average price per barrel US$85.60 US$80.29 US$80.52 US$89.61
Diesel volume (kilolitres) 17,109 16,244 48,594 44,796
Diesel average price per litre US$0.86 US$0.92 US$0.93 US$0.83
Coal volume (t) 121,464 107,186 284,918 289,311
Coal average price per t (*) US$223.48 US$288.42 US$287.10 US$308.94
(*) Price in WMT (Wet Metric Ton) and CFR (Cost & Freight) basis
As part of our ongoing efficiency initiatives, PT Vale maintained coal as the primary energy source
for the burner throughout 3Q23. This decision resulted in a 13% increase in coal consumption,
which was partially offset by a 7% reduction in HSFO consumption compared to the previous
quarter. The rise in diesel consumption by 5% was primarily driven by increased mining support
activities during 3Q23.
[ 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
In terms of financial performance, the Company recorded earnings of US$52.6 million in 3Q23,
representing a decrease compared to the US$70.4 million achieved in 2Q23 due to lower average
realized nickel price.
Furthermore, during 3Q23, PT Vale invested US$65.7 million in capital expenditures, an increase
from the US$60.8 million spent in 2Q23. This increase was primarily allocated to sustaining and
growth spending. Despite the higher spending, the Company maintained prudent cash management
and reported a cash and cash equivalent balance of US$768.4 million as of September 30, 2023,
up from US$719.9 million as of June 30, 2023.
The Company's commitment to implementing good mining practices has earned significant
recognition. In September 2023, PT Vale received three "Best of the Best" trophies at the Good
Mining Practice ("GMP") Award 2023. These awards include the Aditama Certificate and "Best"
Trophy for achievements in Mineral and Coal Mining Technical Management Aspects, Mineral and
Coal Conservation Management Aspects, and Environmental Management Aspects of Mineral and
Coal Mining. Additionally, PT Vale received the "Primary" award for Management of Standardization
and Mining Services Business. Febriany Eddy, CEO and President Director of the Company,
expressed gratitude to employees, contractors, and other stakeholders for their commitment to
prioritizing good mining practices.
Following the signature of Definitive Agreement with Huayou and Ford on March 30th, 2023, PT
Vale is pleased to announce completion of the evaluation and approval by its board of the Pomalaa
mine, a US$925 million investment that will supply ore to the Pomalaa HPAL to further support
Indonesia’s EV supply chain.
The Company will continue to maintain its focus on improving productivity and cost efficiency to
sustain competitiveness in the long term without compromising its foremost values: Life Matters
Most, Respect Our Planet and Communities.
Readers are encouraged to review the Group’s results. Operational achievements as well as
unaudited financial results are summarized on the following pages.
For further information, please contact:
Bernardus Irmanto, Chief Financial Officer
ptvi.investorrelation@vale.com
or visit our website at
www.vale.com/indonesia
[ 2 ]
PT Vale Indonesia Tbk
Jakarta: Sequis Tower, 20th Floor, Unit 6 & 7, Jl. Jend. Sudirman Kav. 71, Jakarta 12190, Indonesia. T.(62) 21 524 9000 F.(62) 21 524 9020
Makassar: Jl. Somba Opu No. 281, Makassar 90113, Indonesia. T.(62) 411 366 9000 F.(62) 411 366 9020
Sorowako: Main Office Plant Site Sorowako, Luwu Timur 92984, Indonesia. T.(62) 475 332 9100 F.(62) 475 332 9575
www.vale.com/indonesia
Page 3
PT Vale Indonesia Tbk
Production and Financial Highlights
3Q23 2Q23 9M23 9M22
Nickel in matte production1 17,953 16,922 51,644 43,907
Nickel matte deliveries1 17,214 16,463 50,435 44,347
Average realized price2 16,204 17,967 18,596 19,703
EBITDA3 104.5 123.0 401.1 382.6
Revenue3 278.9 295.8 937.9 873.8
Profit3 52.6 70.4 221.1 168.4
Earnings per share4 0.0053 0.0071 0.0223 0.0169
1
metric ton (t)
2
US$ per t
3
US$ million
4
US$
[ 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 and its subsidiaries
Interim Consolidated Statements of Profit or Loss
and Other Comprehensive Income
(In thousands of US$ except basic earnings per share)
3Q23 2Q23 9M23 9M22
Revenue 278,929 295,787 937,896 873,777
Cost of revenue (212,499) (210,248) (650,991) (614,691)
Gross profit 66,430 85,539 286,905 259,086
Operating expenses (5,001) (4,772) (15,915) (12,837)
Other income 108 108 333 785
Other expenses (2,117) (1,960) (13,313) (10,190)
Operating profit 59,420 78,915 258,010 236,844
Share in net profit from associates 18 - 18 -
Finance income 9,414 8,740 25,689 5,664
Finance costs (1,326) (1,381) (3,961) (3,928)
Profit before income tax 67,526 86,274 279,756 238,580
Income tax expense (14,956) (15,911) (58,670) (70,195)
Profit for the period 52,570 70,363 221,086 168,385
Other comprehensive
(loss)/income
Items that will not be reclassified to
profit or loss:
− Changes resulting from actuarial
remeasurement of post-
employment benefit liabilities - - - -
− Income tax on other
comprehensive income - - - -
Total other comprehensive
(loss)/income - - - -
Total comprehensive
income for the period 52,570 70,363 221,086 168,385
Profit for the period
attributable to:
Owners of the parent entity 52,570 70,363 221,086 168,385
Non-controlling interest - - - -
52,570 70,363 221,086 168,385
Total comprehensive income for
the period attributable to:
Owners of the parent entity 52,570 70,363 221,086 168,385
Non-controlling interest - - - -
52,570 70,363 221,086 168,385
Earnings per share
- Basic and diluted
(in full amount of US Dollars) 0.0053 0.0071 0.0223 0.0169
[ 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
Interim Consolidated Statements of Financial Position
(In thousands of US$)
September 30, June 30, December 31,
2023 2023 2022
Assets (Unaudited) (Unaudited) (Audited)
Cash and cash equivalents 768,371 719,881 634,042
Trade receivables - Related parties 100,840 92,079 141,377
Inventories 172,381 168,647 155,753
Prepaid taxes – Other taxes 47,639 80,745 48,723
Prepayments and advances 4,332 1,814 4,444
Other current financial assets 6,379 6,240 5,463
Total current assets 1,099,942 1,069,406 989,802
Restricted cash 103,088 103,088 73,044
Prepaid taxes - Corporate income tax 11,084 11,084 10,933
- Other taxes 28,045 29,809 30,869
Investments in associates 12,378 12,724 -
Fixed assets 1,605,203 1,579,185 1,549,857
Other non-current financial assets 2,897 3,646 3,611
Total non-current assets 1,762,695 1,739,536 1,668,314
Total assets 2,862,637 2,808,942 2,658,116
Liabilities and Equity
Trade payables - Related parties 80 69 298
- Third parties 133,451 129,634 115,296
Accruals 35,528 29,375 27,772
Short-term employee benefit liabilities 19,735 12,823 26,244
Taxes payable - Corporate income tax 20,347 22,072 -
- Other taxes 1,605 2,231 2,407
Lease liabilities 5,963 1,883 1,816
Share-based payment liabilities 51 29 467
Other current financial liabilities 4,261 4,045 739
Total current liabilities 221,021 202,161 175,039
Long-term post-employment benefit
liabilities 30,704 30,894 28,457
Deferred tax liabilities 17,625 22,776 24,891
Lease liabilities 3,173 3,239 3,918
Provision for asset retirement 74,454 86,782 71,031
Total non-current liabilities 125,956 143,691 128,297
Total liabilities 346,977 345,852 303,336
Equity 2,515,660 2,463,090 2,354,780
Total liabilities and equity 2,862,637 2,808,942 2,658,116
[ 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
Interim Consolidated Statements of Cash Flows
(In thousands of US$)
3Q23 2Q23 9M23 9M22
Cash flows from operating activities
Receipts from customers 270,167 324,307 978,433 853,424
Payments to suppliers (142,074) (144,237) (442,066) (386,830)
Payments of corporate income tax (21,834) (17,341) (51,059) (55,167)
Payments of other taxes (15,330) (15,315) (45,757) (37,440)
Receipts of tax refunds 48,320 21,883 70,203 20,739
Payments to employees (20,814) (29,421) (81,178) (84,182)
Placement of financial guarantee - (11,529) (30,044) (23,174)
Receipts of finance income 9,414 8,741 25,689 5,664
Payments of royalties and levies (14,146) (15,751) (49,671) (46,513)
Net cash flows provided by operating
113,703 121,337 374,550 246,521
activities
Cash flows from investing activities
Payments for acquisition of fixed assets (65,736) (60,761) (182,657) (127,666)
Proceeds from disposal of fixed assets 2,672 - 2,672 1,500
Net cash flows used in investing activities (63,064) (60,761) (179,985) (126,166)
Cash flows from financing activities
Payment of dividends - (59,304) (59,304) -
Payment of lease liabilities (455) (767) (1,411) (978)
Payments of finance costs (162) (68) (230 (82)
Net cash flows used in financing activities (617) (60,139) (60,945) (1,060)
50,022 437 133,620 119,295
Net increase in cash and cash equivalents
Cash and cash equivalents at the 719,881 717,267 634,042 508,327
beginning of the period
Effect of exchange rate changes on cash (1,532) 2,177 874 (3,281)
and cash equivalents
Cash and cash equivalents of - - (165) -
deconsolidated subsidiaries
Cash and cash equivalents at the end of the 768,371 719,881 768,371 624,341
period
[ 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
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