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20240729_INCO_Laporan Informasi dan Fakta Material_31688549_lamp2.pdf
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PT Vale records higher earnings in 2Q24
Jakarta, July 29th, 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
second quarter of 2024 (“2Q24”).
The production volume in 2Q24 saw a slight decrease of 9% compared to the strong performance in
1Q24. This is a testament to the Company’s commitment to quality and planned maintenance
activities, which are crucial for long-term success. On a year-on-year basis, the production in 2Q24
was only marginal lower by 2%, demonstrating consistent performance. Moreover, the Company is
pleased to report that the production for 1H24 was 3% higher than production in 1H23. This growth
can be attributed to its planned maintenance strategy and higher calcine output in 2024.
We are optimistic about our production outlook and hopeful for a smooth continuation of operations
until the end of the year. Our goal is to achieve a production target of approximately 70,800 metric
tons (“t”) of nickel in matte in 2024, which is an increase than last year’s target.
Production Highlights
2Q24 1Q24 2Q23 1H24 1H23
Nickel in matte production (t) 16,576 18,199 16,922 34,774 33,691
In 2Q24, the Company achieved sales of 17,505 t of nickel matte, generating revenues of US$248.8
million. This represents an 8% increase compared to previous quarter due to higher average realized
nickel price in 2Q24. The average realized nickel price rose by 12% to US$14,214 per ton in 2Q24,
up from US$12,651 per ton in 1Q24. “Despite market volatility, we remain committed to optimizing
our production capacity, improving efficiencies, and reducing costs,” reported Febriany Eddy, CEO
and President Director of the Company.
In line with the reduced shipment in the quarter, the Company’s cost of revenue decreased from
US$209.8 million in 1Q24 to US$207.3 million in 2Q24. The reduction in total cost of revenue also
supported by the decreased consumption of fuels and coal in 2Q24, complemented by a drop in coal
prices.
As we approach the 2nd half of the year, we will further push proactive cost saving initiatives to ensure
our unit cash cost remains competitive in attempt to sustainably generate healthy margins. With the
recent change in shareholder composition, we are seeing ample of room to capitalize on strategic
initiatives that can bring positive synergies to the company, such as integration of procurement efforts
within the group for better commodity input prices which is one of our largest cost drivers.
[ 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:
2Q24 1Q24 1H24 1H23
HSFO volume (barrels) 353,857 425,302 779,159 921,408
HSFO average price per barrel US$87.31 US$85.63 US$86.39 US$78.66
Diesel volume (kilolitres) 17,394 18,473 35,868 31,485
Diesel average price per litre US$0.82 US$0.84 US$0.83 US$0.97
Coal volume (t) 111,134 117,115 228,249 163,454
Coal average price per t (*) US$174.27 US$176.85 US$175.60 US$334.38
(*) Price in WMT (Wet Metric Ton) and CFR (Cost & Freight) basis
The average price of HSFO was 2% higher in this quarter compared to the previous quarter. However,
this increase was offset by the lower average prices of diesel and coal prices, which were 2% and 1%
lower respectively in 2Q24.
Despite industry challenges, the Company was able to generate a positive EBITDA of US$72.4
million, marking a 38% increase compared to the previous quarter due to higher revenue and lower
cost of revenue. Furthermore, the Company managed to book a profit of US$31.1 million in 2Q24,
marking a significant increase from the previous quarter. This profit was realized after accounting for
an unrealized loss of US$6.1 million on recognition of the fair value of a derivative asset (participating
right in the Company’s investment in PT Kolaka Nickel Indonesia). It is important to highlight that
essence of this derivative price adjustment is a non-realized loss which is non-operating in nature.
Hence, on a normalized basis, we recorded a profit of US$35.9 million in 2Q24, which is 122% higher
compared to profit in the previous quarter.
The Company’s cash and cash equivalents increased to US$832.1 million as of June 30, 2024, up
from US$730.8 million on March 31, 2024. PT Vale disbursed approximately US$61.0 million in capital
expenditures this quarter, an increase from US$57.4 million in 1Q24. PT Vale will continue to exercise
prudent control of its spending to preserve cash.
The Company remains committed to prioritizing productivity and cost efficiency improvements,
ensuring long-term competitiveness while implementing good mining practices to achieve its purpose:
We exist to improve life and transform the future. Together.
Readers are encouraged to examine the Group’s results, where operational achievements and
unaudited financial results are concisely summarized in the following pages – all figures are in US$
except for nickel in matte production and deliveries which are in metric tons.
[ 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
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
2Q24 1Q24 1H24 1H23
Nickel in matte production1 16,576 18,199 34,774 33,691
Nickel matte deliveries1 17,505 18,175 35,680 33,221
Average realized price2 14,214 12,651 13,418 19,836
EBITDA3 72.44 52.40 124.85 296.60
Revenue3 248.8 229.9 478.7 658.9
Profit3 31.1 6.2 37.3 207.8
Profit without derivative asset3 35.9 16.2 52.1 164.6
Earnings per share4 0.0030 0.0006 0.0036 0.0209
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 subsidiary
Interim Consolidated Statements of Profit or Loss
and Other Comprehensive Income
(In thousands of US$ except basic earnings per share)
2Q24 1Q24 1H24 1H23*)
Revenue 248,813 229,937 478,750 658,967
Cost of revenue (207,320) (209,843) (417,163) (438,492)
Gross profit 41,493 20,094 61,587 220,475
Operating expenses (7,368) (6,302) (13,670) (16,588)
Other income 3,363 1,559 4,922 225
Other expenses (3,330) (635) (3,965) (11,196)
Operating profit 34,158 14,716 48,874 192,916
Share in net profit from associate (7) 63 56 -
(Loss)/gain on recognition of fair
value of derivative asset (6,120) (12,880) (19,000) 55,370
Finance income 9,078 9,194 18,272 16,275
Finance costs (1,399) (2,256) (3,655) (2,635)
Profit before income tax 35,710 8,837 44,547 261,926
Income tax expense (4,618) (2,643) (7,261) (54,126)
Profit for the period 31,092 6,194 37,286 207,800
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) (3,544) (4,588)
− Income tax on other
comprehensive income - 780 780 1,009
- (2,764) (2,764) (3,579)
Items that will be reclassified to
profit or loss:
- Currency differences from
translation of associate entity’s
financial statements (394) (346) (740) -
Total other comprehensive
loss (394) (3,110) (3,504) (3,579)
Total comprehensive
income for the period 30,698 3,084 33,782 204,221
[ 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
31,092 6,194 37,286 207,800
Total comprehensive income for
the period attributable to:
Owners of the parent entity
30,698 3,084 33,782 204,221
Earnings per share
- Basic and diluted
(in full amount of US Dollars) 0.0030 0.0006 0.0036 0.0209
*) 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$)
June 30, March 31, December 31,
2024 2024 2023
Assets (Unaudited) (Audited) (Audited)
Cash and cash equivalents 832,149 730,852 698,795
Trade receivables - Related parties 107,653 86,418 101,813
Inventories 154,629 143,022 155,946
Prepaid taxes – Corporate Income Tax 2,942 10,145 -
– Other taxes 45,762 59,513 64,599
Prepayments and advances 1,568 4,902 6,056
Other current financial assets 5,228 5,861 5,910
Total current assets 1,149,931 1,040,713 1,033,119
Restricted cash 75,777 75,777 103,857
Prepaid taxes - Corporate income tax 31,532 18,726 15,015
- Other taxes 25,088 7,149 36,498
Investments in associate 11,726 12,127 12,410
Derivative asset 5,690 11,810 24,690
Fixed assets 1,761,928 1,721,920 1,695,531
Other non-current financial assets 4,488 4,841 4,879
Total non-current assets 1,916,229 1,842,350 1,892,880
Total assets 3,066,160 2,893,063 2,925,999
Liabilities and Equity
Trade payables - Related parties 720 114 312
- Third parties 142,911 104,285 140,515
Accruals 45,949 42,381 33,843
Short-term employee benefit liabilities 17,337 11,903 25,070
Taxes payable - Other taxes 2,446 7,325 2,821
Lease liabilities 4,898 5,916 5,543
Share-based payment liabilities 52 29 110
Provision for asset retirement 4,804 6,568 6,422
Other current financial liabilities 1,516 2,548 2,091
Total current liabilities 220,633 181,069 216,727
Long-term post-employment benefit
liabilities 41,888 43,127 39,695
Deferred tax liabilities 9,971 14,653 19,603
Lease liabilities 3,406 3,960 3,078
Provision for asset retirement 84,902 76,331 77,482
Other non-current financial liabilities 6,096 6,302 4,877
Total non-current liabilities 146,263 144,373 144,735
Total liabilities 366,896 325,442 361,462
Equity 2,699,264 2,567,621 2,564,537
Total liabilities and equity 3,066,160 2,893,063 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$)
2Q24 1Q24 1H24 1H23
Cash flows from operating activities
Receipts from customers 227,578 245,332 472,910 708,266
Payments to suppliers (115,155) (156,730) (271,885) (299.992)
Payments of corporate income tax (24,703) (20,669) (45,372) (29,225)
Payments of other taxes (21,172) (11,179) (32,351) (30,427)
Receipts of tax refunds 15,784 50,118 65,902 21,883
Payments to employees (26,025) (37,344) (63,369) (60,364)
Withdrawal of financial guarantee (769) 28,080 27,311 -
Placement of financial guarantee - - - (30,044)
Receipts of finance income 9,078 9,194 18,272 16,275
Payments of royalties and levies (14,220) (14,039) (28,259) (35,525)
Net cash flows provided by operating
50,396 92,763 143,159 260,847
activities
Cash flows from investing activities
Payments for acquisition of fixed assets (61,021) (57,452) (118,473) (116,921)
Proceeds from disposal of fixed assets 228 150 378 -
Net cash flow decrease from loss of control
of a subsidiary - - - (165)
Net cash flows used in investing activities (60,793) (57,302) (118,095) (117,086)
Cash flows from financing activities
Issuance of new shares 108,743 - 108,743 -
Payment of dividends - - - (59,304)
Payment of lease liabilities 1,470 (2,379) (909) (956)
Payments of finance costs (108) (123) (231) (68)
Net cash flows used in financing activities 110,105 (2,502) 107,603 (60,328)
99,708 32,959 132,667 83,433
Net increase in cash and cash equivalents
Cash and cash equivalents at the 730,852 698,795 698,795 634,042
beginning of the period
Effect of exchange rate changes on cash 1,589 (902) 687 2,406
and cash equivalents
Cash and cash equivalents at the end 832,149 730,852 832,149 719,881
of the 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
unresolved
org
PT Vale’s High Sulphur Fuel Oil
p.2
unresolved
org
PT Kolaka Nickel Indonesia
p.2
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