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20241030_INCO_Laporan Informasi dan Fakta Material_31750878_lamp3.pdf
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Page 1
A profitable third quarter of 2024
amidst declining price environments
Jakarta, October 30th, 2024 – PT Vale Indonesia Tbk (“PT Vale” or the “Company”, IDX Ticker: INCO)
and its subsidiary (jointly referred to as the “Group”) today announced its unaudited results for the third
quarter of 2024 (“3Q24”).
PT Vale’s production in 3Q24 and the nine-month period of 2024 (“9M24”) showed positive
performance, reaching a total of 18,008 metric tons (“t”) which is a 9% increase compared to the
previous quarter and 52,783 t, or a 2% increase year-on-year respectively. This positive outcome can
be attributed to the improvement in the average nickel ore grade from our mining operations, reaching
1.79% (+4% compared to 2Q24) which further supported by higher calcine output resulting from the
reprioritization of work scope and optimalization of maintenance duration in our processing facilities.
Production Highlights
3Q24 2Q24 3Q23 9M24 9M23
Nickel in matte production (t) 18,008 16,576 17,953 52,783 51,644
In line with the increase of production in 3Q24 and 9M24, PT Vale recorded an increase of nickel matte
deliveries by 1% on a quarterly basis and a considerable 6% on yearly basis, suggesting improved
operational performance during the period.
Regarding nickel matte production at our Sorowako operation, we are optimistic about reaching our
target of approximately 70,800 t by the end of 2024. We also aim to execute our pilot ore sales program
in the fourth quarter of this year (subject to RKAB revision approval).
Despite the challenges, especially from further price decline in the 3Q24, the Company managed to
record revenues of US$229.8 million for the quarter. The average realized price stood at US$12,948
for the quarter and US$13,262 per ton for the nine-month period, reflecting a 9% and 29% decline
compared to the average realized price in 2Q24 and 9M23, respectively. Meanwhile, the cost of
revenue in 3Q24 increase slightly by 2% but decreased by 3% in 9M24 compared to the cost of
revenue in 2Q24 and 9M23, respectively.
[ 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 of PT Vale’s High Sulphur Fuel Oil (“HSFO”), diesel and coal
consumption and average price:
3Q24 2Q24 9M24 9M23
HSFO volume (barrels) 393,628 353,857 1,172,787 1,258,759
HSFO average price per barrel US$92.07 US$87.31 US$88.30 US$80.52
Diesel volume (kilolitres) 17,044 17,394 52,913 48,594
Diesel average price per litre US$0.77 US$0.82 US$0.81 US$0.93
Coal volume (t) 99,619 111,134 327,868 284,918
Coal average price per t (*) US$190.60 US$174.27 US$180.15 US$287.10
(*) Price in WMT (Wet Metric Ton) and CFR (Cost & Freight) basis
In the third quarter of 2024, HSFO consumption increased by 11% compared to the second quarter,
offset by lower coal consumption, due to 14 days maintenance of coal mill facility. During this period,
HSFO and coal prices also rose by 5% and 9%, respectively, while diesel prices fell by 6%.
PT Vale reported an EBITDA of US$46.9 million for the third quarter of 2024, down from US$72.4
million in the second quarter. The decrease was primarily due to lower realized nickel matte price and,
also the one-time effect of maintenance on the coal mill facility in September, which led to higher
consumption of HSFO to replace the coal usage.
In addition, following the issuance of our Special Mining Business Permit (IUPK), PT Vale started to
accrue Non-Tax State Revenue (PNBP) in the form of 10% sharing of net earnings, totalling US$3.6
million for the period of 3Q24. However, the implementation of this obligation is still subject to
confirmation from Ministry of Energy and Mineral Resources (MEMR).
Following the completion of divestment in June, the Company is currently carrying out the carve-out
process from Vale Base Metal, which involves slight one-off associated costs. However, we are
implementing the transition thoroughly to ensure it proceeds smoothly and efficiently. In addition, we
continuously aim to improve the competitiveness of our Sorowako operations with unit cash cost of
revenue remaining competitive at US$9,536 per ton as of 9M24.
As of September 30, 2024, the Company’s cash and cash equivalents were at US$771.2 million, down
from US$832.1 million as of June 30, 2024. In the third quarter of 2024, PT Vale invested US$82.4
million in capital expenditures, an increase from US$61.0 million in the second quarter. This increase
was mainly directed towards growth projects for future mine developments.
In a significant milestone for sustainability, PT Vale announced a significant achievement in its
sustainability journey, receiving a revised ESG (Environmental, Social, and Governance) risk rating of
29.4 from Sustainalytics, placing the company in the Medium ESG Risk category. this marks a
significant improvement from its previous classification. Notably, PT Vale stands as the only
Indonesian nickel company within the sector to achieve medium category, further demonstrating
the company’s leadership in ESG performance in the nickel mining sector.
Furthermore, the Company received the Subroto Award, the highest honor granted by the MEMR, in
the community development and empowerment category. This highlights the Company's dedication to
tackling social issues by utilizing its knowledge and resources.
[ 2 ]
PT Vale Indonesia Tbk
Jakarta: Sequis Tower, 20th Floor, Unit 6 & 7, Jl. Jend. Sudirman Kav. 71, Jakarta 12190, Indonesia. T.(62) 21 524 9000 F.(62) 21 524 9020
Makassar: Jl. Somba Opu No. 281, Makassar 90113, Indonesia. T.(62) 411 366 9000 F.(62) 411 366 9020
Sorowako: Main Office Plant Site Sorowako, Luwu Timur 92984, Indonesia. T.(62) 475 332 9100 F.(62) 475 332 9575
www.vale.com/indonesia
Page 3
The Company remains committed to enhancing productivity and cost efficiency, ensuring long-term
competitiveness while adhering to good mining practices. Our purpose is We exist to improve life
and transform the future. Together.
Readers are encouraged to examine the Group’s results, where operational achievements and
unaudited financial results are concisely summarized in the following pages – all figures are in US$
except for nickel in matte production and deliveries which are in metric tons.
For further information, please contact:
Rizky Putra, 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
3Q24 2Q24 9M24 9M23*
Nickel in matte production1 18,008 16,576 52,783 51,644
Nickel matte deliveries1 17,749 17,505 53,429 50,435
Average realized price2 12,948 14,214 13,262 18,596
EBITDA3 46.9 72.4 171.8 401.1
Revenue3 229.8 248.8 708.6 937.9
Profit3 13.8 31.1 51.1 238.3
Profit without derivative asset3 6.6 35.9 58.7 216.7
Earnings per share4 0.0013 0.0030 0.0049 0.0240
1
metric ton (t) *Restated refer to Note 42*)
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 subsidiary
Interim Consolidated Statements of Profit or Loss
and Other Comprehensive Income
(In thousands of US$ except basic earnings per share)
3Q24 2Q24 9M24 9M23*)
Revenue 229,818 248,813 708,568 937,896
Cost of revenue (211,235) (207,320) (628,398) (650,991)
Gross profit 18,583 41,493 80,170 286,905
Operating expenses (7,894) (7,368) (21,564) 21,590
Other income (500) 3,363 4,422 333
Other expenses (3,921) (3,330) (7,886) (13,313)
Operating profit 6,268 34,158 55,142 252,335
Share in net profit from associate 27 (7) 83 18
(Loss)/gain on recognition of fair
value of derivative asset 9,210 (6,120) (9,790) 27,630
Finance income 9,085 9,078 27,357 25,689
Finance costs (2,277) (1,399) (5,932) (3,961)
Profit before income tax 22,313 35,710 66,860 301,711
Income tax expense (4,867) (4,618) (12,128) (63,441)
Profit for the period before
non-tax government revenue 17,446 31,092 54,732 238,270
Non-tax government revenue (3,624) - (3,624) -
Profit for the period
13,822 31,092 51,108 238,270
Other comprehensive
(loss)/income
Items that will not be reclassified to
profit or loss:
− Changes resulting from actuarial
remeasurement of post-
employment benefit liabilities - - (3,544) (4,588)
− Income tax on other
comprehensive income - - 780 1,009
- - (2,764) (3,579)
Items that will be reclassified to
profit or loss:
- Currency differences from
translation of associate entity’s
financial statements 973 (394) 233 -
Total other comprehensive
loss 973 (394) (2,531) (3,579)
Total comprehensive
income for the period 14,795 30,698 48,577 234,691
[ 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
Profit for the period
attributable to:
Owners of the parent entity
13,822 31,092 51,108 238,270
Total comprehensive income for
the period attributable to:
Owners of the parent entity
14,795 30,698 48,577 234,691
Earnings per share
- Basic and diluted
(in full amount of US Dollars) 0.0013 0.0030 0.0049 0.0240
*Restated refer to Note 42*)
[ 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 subsidiary
Interim Consolidated Statements of Financial Position
(In thousands of US$)
September 30, June 30, December 31,
2024 2024 2023
Assets (Unaudited) (Unaudited) (Audited)
Cash and cash equivalents 771,215 832,149 698,795
Trade receivables - Related parties 79,983 107,653 101,813
Inventories 162,601 154,629 155,946
Prepaid taxes – Corporate Income Tax - 2,942 -
– Other taxes 72,970 45,762 64,599
Prepayments and advances 5,160 1,568 6,056
Other current financial assets 6,326 5,228 5,910
Total current assets 1,098,255 1,149,931 1,033,119
Restricted cash 75,777 75,777 103,857
Prepaid taxes - Corporate income tax 48,360 31,532 15,015
- Other taxes 22,868 25,088 36,498
Investments in associate 12,726 11,726 12,410
Derivative asset 14,900 5,690 24,690
Fixed assets 1,834,686 1,761,928 1,695,531
Other non-current financial assets 5,338 4,488 4,879
Total non-current assets 2,014,655 1,916,229 1,892,880
Total assets 3,112,910 3,066,160 2,925,999
Liabilities and Equity
Trade payables - Related parties - 720 312
- Third parties 137,676 142,911 140,515
Accruals 52,872 45,949 33,843
Short-term employee benefit liabilities 21,008 17,337 25,070
Taxes payable – Other taxes 2,719 2,446 2,821
Lease liabilities 4,685 4,898 5,543
Share-based payment liabilities 287 52 110
Provision for asset retirement 1,055 4,804 6,422
Other current financial liabilities 1,972 1,516 2,091
Total current liabilities 222,274 220,633 216,727
Long-term post-employment benefit
liabilities 46,703 41,888 39,695
Deferred tax liabilities 9,674 9,971 19,603
Lease liabilities 3,679 3,406 3,078
Provision for asset retirement 99,455 84,902 77,482
Other non-current financial liabilities 6,604 6,096 4,877
Total non-current liabilities 166,115 146,263 144,735
Total liabilities 388,389 366,896 361,462
Equity 2,724,521 2,699,264 2,564,537
Total liabilities and equity 3,112,910 3,066,160 2,925,999
[ 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
Page 8
PT Vale Indonesia Tbk and its subsidiary
Interim Consolidated Statements of Cash Flows
(In thousands of US$)
3Q24 2Q24 9M24 9M23
Cash flows from operating activities
Receipts from customers 257,488 227,578 730,398 978,433
Payments to suppliers (172,968) (115,155) (444,853) (442,066)
Payments of corporate income tax (19,919) (24,703) (65,291) (51,059)
Payments of other taxes (20,366) (21,172) (52,717) (45,757)
Receipts of tax refunds 6,427 15,784 72,329 70,203
Payments to employees (25,262) (26,025) (88,631) (81,178)
Withdrawal of financial guarantee - (769) 27,311 -
Placement of financial guarantee - - - (30,044)
Receipts of finance income 9,093 9,078 27,365 25,689
Payments of royalties and levies (17,409) (14,220) (45,668) (49,671)
Net cash flows provided by operating
17,084 50,396 160,243 374,550
activities
Cash flows from investing activities
Payments for acquisition of fixed assets (82,429) (61,021) (200,902) (182,657)
Proceeds from disposal of fixed assets (6) 228 372 2,672
Net cash flows decrease from loss of control
of a subsidiary - - - (165)
Net cash flows used in investing activities (82,435) (60,793) (200,530) (180,150)
Cash flows from financing activities
Issuance of new shares 3,509 108,743 112,252 -
Payment of dividends - - - (59,304)
Payment of lease liabilities (467) 1,470 (1,376) (1,411)
Payments of finance costs (121) (108) (352) (230)
Net cash flows used in financing activities 2,921 110,105 110,524 (60,945)
(62,430) 99,708 70,237 133,455
Net increase in cash and cash equivalents
Cash and cash equivalents at the 832,149 730,852 698,795 634,042
beginning of the period
Effect of exchange rate changes on cash 1,496 1,589 2,183 874
and cash equivalents
Cash and cash equivalents at the end of the 771,215 832,149 771,215 768,371
period
[ 8 ]
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 4 people and organisations named in the text · linked when the evidence is strong
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PT Vale’s
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PT Vale’s High Sulphur Fuel Oil
p.2
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Ministry of Energy and Mineral Resources
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